Energy Newsletter

European gas prices rose by up to 50% in March 2026 and are above €60/MWh in Germany – six times higher than in the USA. The crisis is intensified by blockades of the Strait of Hormuz, production stops in Qatar, and low European storage levels (Germany at ~20%). Without nuclear power and with insufficient electricity generation from renewable sources, Germany is becoming increasingly dependent on volatile gas imports.

Despite massive expansion of renewable energy, Germany can supply itself with electricity in only 2.7% of the time in 2026. Installed wind and solar capacity of 174 GW often delivers only 12–15 GW at peak load, while grid operators simultaneously manage balancing issues and negative electricity prices. McKinsey warns of system costs, import dependence, and unresolved capacity gaps until 2030.

E.ON increases its investment program for 2026–2030 to $57 billion (€48 billion) – a significant increase from the previous plan. This is intended to offset expected electricity demand increases from electric mobility and heat pumps and secure grid stability. The massive capital allocation demonstrates how costly energy transition infrastructure is.

Leaked documents show that RWE and E.ON influence positions of the Federal Ministry for Economic Affairs on grid packages and electricity market policy. The entanglement of energy companies with government agencies is criticized, while simultaneously a Düsseldorf entrepreneur plans reactivation of decommissioned nuclear power plants as a public-private partnership. This could bring RWE, E.ON, Vattenfall, and EnBW substantial profits.

Vattenfall Germany CEO Robert Zurawski warns of political pressure on renewable energy expansion targets. While Europe views the energy transition optimistically, concrete expansion of wind and solar in Germany faces pressure from regulatory hurdles such as grid package regulations and slow permitting processes. This delays necessary capacity buildup and reinforces import dependence.