Energy Newsletter

European gas prices have risen 160% from January to October 2026 (€28 to €74/MWh), driven by the Strait of Hormuz blockade and supply shortages. This is pushing Germany's wholesale electricity prices to €138-180/MWh – highest levels in 3 years. Brussels energy policy is being held responsible for structural supply insecurity.

EON subsidiary Bayernwerk shuts down solar systems from operators and prevents local electricity consumption, while EON board member Katharina Reiche as economics minister pushes through new redispatch regulations that favor EON. Competitors such as RWE and EnBW protest against this market distortion.

Four transmission system operators (50Hertz, Amprion, TenneT, TransnetBW) are increasing grid fees in 2027 by 24% to €3.54 cents/kWh (from €2.86 cents in 2026). Of the planned 16,776 km of grid expansion, only 2,919 km have been completed; delays of up to 12 years are threatening industrial capacity.

Germany had planned €30 billion in renewable energy subsidies for 2026 but had already spent €36 billion by late September; total budget overrun forecast at €90 billion. Wholesale electricity prices for January 2027 are 60% above prior year value; suppliers such as Grüüün have ceased operations after 2 years in business.

RWE is positioning itself as a leading player in German fusion strategy (Proxima Fusion Stellarator, Focused Energy Laser-Fusion) and benefiting from grid expansion deals with Amprion. EnBW opens 5MW PEM electrolyzer at Wyhlen (total capacity 6MW), using locally generated electricity for 700t/a hydrogen production.