Energy Newsletter

European gas prices have more than doubled from €30/MWh (Sept. 2025) to €81/MWh (Sept. 2026). Germany has the lowest storage levels since seasonal records at under 50%, while electricity prices are rising to €122/MWh in 1-year forwards. Geopolitical tensions (Iran conflict) are further intensifying supply risks.

Vattenfall has made FID (Final Investment Decision) for 254 MW / 1 GWh battery storage at the former nuclear site Brunsbüttel, while EnBW is investing in parallel in 400 MW/800 MWh at Philippsburg Energy Park. Both projects address dark doldrums and grid stability with over 70% renewable electricity feed-in.

McKinsey analysis shows: Despite €1 billion in investments, Germany is significantly missing its energy transition targets. Parallel power generation systems (coal/gas + renewables) with 284 GW total capacity lead to economic inefficiencies and electricity prices of 35-37 ct/kWh – the highest among G20 nations.

Attacks on transformer stations of grid operators 50Hertz (Brandenburg) and Amprion reveal vulnerability of critical infrastructure. Grid operators refuse to take drone defense as their responsibility – a security gap in times of attack risks and high system load due to area power dependency.

RWE, Siemens, and Covestro sign multi-billion contracts with ADNOC, XRG, and Masdar (UAE) for offshore wind and LNG infrastructure in Germany. Deals secure 5+ billion euros in immediate investments and diversify energy supply away from pure import dependency.