Energy Newsletter

German wholesale electricity prices climb to nearly €138/MWh (highest level in 3 years), even expected to exceed €180/MWh for January 2027. Drivers are gas price explosion (160% increase in 9 months to €74/MWh) and lack of storage and demand flexibility. The central promise of cheaper energy through energy transition has effectively failed, grid fees and reserve power plant costs are rising significantly.

Vattenfall awards €-million contract to US firm Fluence for 254-MW/1-GWh battery storage at former nuclear power plant site Brunsbüttel (grid connection 50Hertz). Project symbolizes critical infrastructure bottlenecks: With 116 GW storage connection requests and only gigawatt-scale projects in planning, the supply gap is growing significantly.

The four German TSOs (TenneT ~€28 billion, Amprion ~€10 billion, 50Hertz ~€10 billion, TransnetBW) have built up approximately €50 billion in net debt. Grid fees for 2027 rise to 3.54 ct/kWh (without federal subsidy 6.52 ct/kWh), which additionally burdens household electricity prices and aggravates long-term refinancing risks.

EnBW has commissioned He Dreiht (64×15-MW turbines, €2.4 billion) without subsidies – first major offshore project without government support in Germany. Successful industrialization shows that scaling reduces costs; partly refutes energy transition criticism and strengthens competitiveness of the Big Four (E.ON, RWE, EnBW, Vattenfall).

Energy transition debate intensifies: Katherina Reiche (Economics Ministry) is accused of favoring energy corporation interests (gas power plants, battery regulation) in the EEG Amendment as former E.ON manager. Reddit threads criticize dismantling of renewable energy targets in favor of established major corporations – credibility crisis for government energy transition policy.