Energy Newsletter

In October 2026, a dark doldrum leads to extreme electricity price spikes from 13 to over 300–500 Euro/MWh. Wind turbines temporarily deliver only 0.5% of their installed capacity. This demonstrates the structural vulnerability of the German electricity market despite 200+ GW of renewable capacity and underscores dependence on expensive backup gas-fired power plants.

German households pay an average of 37 ct/kWh in 2026 – making them the top in the G20 and 34% above the EU average. High prices jeopardize the profitability of e-cars and heat pumps, which are central to the energy transition. Without a price solution, there is a risk of losing acceptance for decarbonization technologies.

The energy transition costs an estimated 6 trillion euros – grid expansion alone costs 6.5 billion euros annually in 2026, plus reserve power plants, storage, and a new capacity market. The promised cost savings from wind and solar have failed to materialize; instead, subsidies in the billions must cover the difference.

Germany allocates 12 billion euros for 5.16 GW of new or converted gas-fired power plants to RWE, LEAG, and other utility players. This underscores that gas remains indispensable in 2026 to bridge dark doldrums – a strategic and economic setback for CO₂ targets.

The four transmission system operators report levy increases of 22.9% to 3.621 cents/kWh for 2027; 50Hertz signals connection bottlenecks through 2029–2030. Grid charges become the second pillar of the electricity cost crisis, in addition to power generation, and jeopardize the competitiveness of energy-intensive industries.