Energy Newsletter

Spot gas prices in Germany have risen above €60/MWh – approximately 6x higher than in the USA – while gas storage is critically low (partly below 40%, in Bavaria only 6%). The price explosion is driven by geopolitical tensions (Iran conflict) and missing Russian gas supplies, heavily burdening industry and households.

Federal Network Agency report and Amprion CEO warn that Germany's transmission grid will be partly overloaded in 2026 – the company is 'sold out' according to its own statement. 45 TWh of additional capacity is needed to manage highly volatile wind power feed-in and minimize blackout risks.

E.ON increases capex to €57 billion (2026–2030, previously €43 billion) for grid renovation and modernization; RWE plans 40 GW green capacity through 2031 with €35 billion investments. This massive infrastructure offensive aims to reduce bottlenecks but is burdened by high financing costs and regulatory hurdles.

Renewable energy supplies over 50% of electricity on windy and sunny days in 2026, but volatility increases dramatically (daily fluctuations of 46–53%). Price records of €429/MWh during darkness/calm conditions highlight market problems: overcapacity in generation, critical bottlenecks in demand, lack of storage and flexibility.

E.ON, RWE, and EnBW reject nuclear power reactivation as technically complex, regulatorily impossible, and economically unprofitable. EnBW suffers financial problems from ideological forced transformation under green government leadership and damages market stability; utilities see the future in renewables plus gas power plants instead of nuclear energy.