Energy Newsletter

Spot gas prices in Germany have risen above €60/MWh – approximately 6x higher than in the USA – and became 43.7% more expensive in March. The US-Israel conflict in Iran is triggering a new European energy crisis, placing massive strain on Germany's industry and households while exacerbating dependence on fossil fuels. High electricity generation costs from gas-fired power plants are hitting a country that has not yet stabilized its energy transition.

The Bundesnetzagentur warns: Germany will be partially overloaded in 2026, requires 45 days of redispatch, and has insufficient backup power plants. Amprion CEO declares the power grid "sold out"; only a pilot project with 700 electric vehicles shows redispatch solutions. The lack of secured capacity following nuclear phase-out and coal reduction threatens grid stability and drives massive balancing costs.

Politicians show conspicuous proximity to EON and RWE; criticism concerns unclear entanglement of former ministers with corporate interests. The discussion raises questions about lobbying influence on energy policy and subsidy logic, particularly in the context of merger approvals (EVH/enercity/EON/RWE confirmed by EU court). This undermines confidence in the independence of regulatory decisions.

RWE plans $19 billion US investments through 2031 and supports fusion projects (Biblis); EnBW expects stable or declining profits in 2026. German energy companies are shifting growth abroad and into future technologies (fusion), while Germany's electricity market faces profitability pressure from high prices and grid problems.

Wind and solar cover 76-80% of German electricity generation, net CO2 drops to ~210g/kWh; but electricity exports fall and imports rise (13 GW in March during dark doldrums). The energy transition runs successfully in production but fails in grid integration, storage, and load management – subsidies for generation are useless without grid expansion.