Energy Newsletter

E.ON is raising its investment budget for 2026–2030 from €43 to €48 billion (US$57 billion) to modernize electricity grids and meet energy transition requirements. Operating profit rose 9% in 2025, but the forecast for 2026 disappoints. The massive capital injection signals that grid expansion is becoming a critical bottleneck solution requiring substantial investments.

Federal Economy Minister Reiche is accused of using her former position as Westenergie CEO (E.ON subsidiary) to shape grid packages in favor of E.ON and RWE. Analysis shows that 75% of grid capacity problems stem from E.ON, and planned regulations align exactly with E.ON's demands. Suspicion of conflicts of interest and political lobbying damages trust in energy transition regulation.

The federal government is acquiring 25% of TenneT Deutschland, securing control over critical grid infrastructure; the Dutch government is withdrawing. The government now also holds stakes in 50Hertz (20%) and TransnetBW (approximately 25%), signaling a strategic nationalization of transmission system operators. This measure underscores the security-policy importance of electricity infrastructure for energy transition success.

Germany's gas storage falls below 38% capacity, in Bavaria partly to 6%, while gas prices rose 36% in February. Cold winter and halts in Qatar LNG worsen the situation; EU warns of supply crisis due to Iran conflict. Gas shortage threatens both heating supply and electricity generation, endangering Europe's deindustrialization dynamic.

RWE and start-up Proxima Fusion are building a €2 billion fusion reactor in Garching by the early 2030s; RWE is using a former nuclear power plant site. The project signals renewed confidence from major energy suppliers in fusion energy as a long-term solution alongside renewables. The strategic shift shows that nuclear power (in new form) is returning to energy transition planning.