Energy Newsletter

In Q1 2026, renewable energies cover more than 50% of German electricity consumption for the first time. In parallel, massive market distortions emerge: While Northern Europe struggles with negative electricity prices, Southern regions pay 4 times as much as France – driven by the merit-order principle and grid bottlenecks. RWE, E.ON and Vattenfall demand reforms in grid charges for renewable energy producers.

European gas prices have risen 60% since the start of the conflict; Germany's gas storage is below average. Wholesale gas prices (TTF) influence 40-60% of German energy bills and drive electricity prices massively upward, while France's nuclear power remains stable. The energy industry and research are lowering growth forecasts for 2026 to 0.6% GDP.

Germany's four transmission system operators (50Hertz, Amprion, TenneT, TransnetBW) report massive regulatory needs: Amprion regulated 3.5 GWh from renewables in Q1 2026 alone. The Ultranet project is to be completed by end of 2026, A-Nord to become operational in 2027. Amprion proposes that green power producers shoulder a larger share of grid expansion costs.

French nuclear power plants play an increasingly critical role in German grid stability during renewable energy fluctuations. BNetzA redispatch interventions are rising – with directly increased grid charges for end customers. This structural dependency contradicts the energy transition independence goal and exacerbates geopolitical risks.

Consumers don't understand why electricity bills rise with 53% renewable share: merit-order system sets the exchange price according to the most expensive available power plant (usually gas), not the average. Large knowledge gap in the public; however, prices for new contracts have declined significantly compared to existing contracts.