Energy Newsletter

Germany achieved a record share of 53% renewable energy in gross electricity consumption in the first quarter of 2026 – an increase from 63.6 to over 73.2 GWh compared to Q1 2025. This demonstrates the accelerated success of the energy transition, but simultaneously exacerbates grid stability and load balancing issues, as variable generation (wind, solar) increasingly requires gas imports and French nuclear power for stabilization.

French nuclear power plants play an increasingly critical role in stabilizing the German power grid, while redispatch costs rise due to grid bottlenecks (not electricity shortages). This reveals the strategic dependence of German energy supply on French nuclear capacity and undermines the independence of the energy transition.

Spot gas prices in Germany have risen above €60/MWh – approximately 6 times higher than in the USA – driven by the Iran conflict since the start of the war. High gas prices drive up European electricity prices (merit-order effect), threaten Germany's industrial competitiveness, and force acceleration of renewables and storage solutions.

Amprion and the four transmission system operators are building critical north-south electricity corridors (Ultranet by end of 2026, A-Nord 2027) to address grid bottlenecks. These projects are essential for integrating wind power from northern and southern Germany and reducing redispatch costs, which rose sharply in 2026.

The ECJ has confirmed all 9 appeals against the approval of the EVH/enercity takeover by E.ON and RWE. This market consolidation enables large-scale investments in grid infrastructure and renewables, but concentrates market power among few major players (E.ON, RWE, EnBW, Vattenfall).