Energy Newsletter

Vattenfall awards US company Fluence a major contract for a 254-MW/1-GWh battery storage facility at the former Brunsbüttel nuclear power plant site, with commissioning planned for end of 2028. This is one of Germany's largest storage projects and demonstrates the strategic shift from nuclear power to flexibility infrastructure. The project is central to stabilizing the German electricity grid during high wind supply.

Wholesale electricity prices in Germany reach record levels of over €210/MWh in day-ahead trading, while gas prices across Europe surged 160% over nine months (€28 to €74/MWh). This drives household prices above 36 c€/kWh and severely threatens industrial competitiveness. Causes include weak French nuclear power, lack of gas alternatives, and supply bottlenecks.

By mid-October 2026, only 41% of wind power and 57% of solar expansion targets have been achieved, despite the federal government aiming for 22 GW annually from 2026 onwards. Meanwhile, sources report 36 billion € in subsidies already spent against planned 30 billion € for 2026. The massive subsidy requirement combined with insufficient expansion points to structural inefficiency.

All four transmission system operators (50Hertz, Amprion, TenneT, TransnetBW) are raising 2027 grid charges by approximately 24% to an average of 3.54 ct/kWh, while their net debt stands at approximately 50 billion €. TransnetBW and TenneT are simultaneously doubling capacities on north-south transmission lines. Cost burden on consumers and industry is growing in parallel with massive grid expansion.

RWE is building a 1.7-GW large-scale storage facility (236 MW individual plant) on the former Hambach lignite opencast mine as a flagship project for energy transition transformation. In parallel, RWE is investing in fusion research (Proxima Fusion, Focused Energy) and is leading in innovative energy technologies in Germany. This signals the strategic reorientation of major energy companies away from fossil fuels.