Energy Newsletter

The CEO of Amprion warns that the German power grid is "sold out" and no new generation capacities can be connected. 161 GW of battery storage nationwide are waiting for grid connection, while the four transmission system operators (Amprion, TenneT, 50Hertz, TransnetBW) have submitted a new grid development plan 2037/2045. The bottlenecks endanger the energy transition and force redistribution debates between generators and grid operators.

Spot gas prices in Germany have risen above 60 €/MWh – six times higher than in the USA – driven by the Iran conflict and low storage levels. This drives electricity prices up (merit-order effect) and forces European power plants to return to coal. Entire industries are relocating production abroad.

E.ON is nearly doubling its investment program to 48 billion euros (2026–2030) to modernize distribution networks amid bottlenecks from electric mobility and heat pumps. This signals a structural investment boom in the grid sector, but also burdens network charges for consumers. RWE and other major corporations are following with similar programs.

Leaked lobbying papers show that RWE prioritizes gas power plants and deliberately excludes battery storage; simultaneously, RWE is investing 20 billion dollars in US gas power plants instead of German renewables. This reveals contradictions between energy transition rhetoric and corporate interests and demonstrates the political power of major energy corporations.

Energy subsidies rise to 77.8 billion euros in 2026, of which 29.5 billion for wind/solar; meanwhile, households pay 0.38 €/kWh – the highest in Europe. McKinsey analysis shows: electricity prices remain structurally high despite massive subsidies and expansion. This illustrates the efficiency and distribution problem of the energy transition.