Energy Newsletter

In the first quarter of 2026, renewable energies cover more than 50% of German electricity consumption for the first time – a historic milestone compared to 47% in Q1 2025. Solar production grew from 63.6 to over 73.2 GWh and saves Europe billions of euros in energy imports monthly. This breakthrough fundamentally changes market dynamics: gas and coal power plants lose economic viability, while grid expansion becomes a critical infrastructure priority.

German spot gas prices have risen above €60/MWh and are thus 6x higher than in the USA – driven by the Iran conflict and supply failures. Goldman Sachs forecasts inflation peaks of 3.2% in Q2 2026 and warns of production losses in industry. The merit order pricing mechanism means that even renewable electricity generation is affected by these gas prices, heavily burdening consumers.

Amprion and the four TSOs (50Hertz, TenneT, TransnetBW) are accelerating electricity highway projects: Ultranet is to be completed by end of 2026, A-Nord to become operational in 2027 – critical for the distribution of renewable energies. Without this infrastructure, redispatch costs and grid bottlenecks threaten, which will be passed on to consumer and industrial electricity prices. The Federal Network Agency and TSOs are discussing for the first time involving green power generators in grid expansion.

French nuclear power plants play an increasingly central role in stabilizing the German power grid, particularly during fluctuations in renewable energy. Redispatch interventions by the TSOs become more frequent and costly – these costs end up in grid fees. The dependence on French nuclear power retroactively refutes the debate about Germany's own nuclear phase-out policy and reveals strategic vulnerability.

The EU Court of Justice rejected all 9 appeals by municipal utilities against the EU Commission and confirms the antitrust clearance of the EVH/enercity/E.ON/RWE merger. With this, the consolidation of the German energy market into large corporations is complete, which in the long term suggests less competition and greater market power. EnBW already announces it will not challenge the nuclear phase-out – an indication of market power relationships.