Energy Newsletter

Germany's electricity market is experiencing record values: In the first quarter of 2026, renewable energies cover more than 53% of electricity consumption for the first time, leading to massive market distortions – record production caused negative electricity prices at Easter. The traditional major corporations EON, RWE, EnBW, and Vattenfall are losing their pricing power, while grid bottlenecks and regional imbalances (north-south divide) are generating new costs for transmission system operators. This phenomenon demonstrates the structural crisis of the merit order approach and threatens the profitability of conventional power plants.

European gas prices have risen more than 60% since the start of the war in Iran; Germany currently pays €86.80/MWh for electricity while France costs only €22.06/MWh. Germany's dependence on gas for baseload generation (despite nuclear phase-out) leads to massive competitive distortion compared to nuclear energy countries and intensifies deindustrialization trends. This reveals the geopolitical vulnerability of the German energy transition and briefly refutes the cost savings from renewables.

Amprion had to curtail 3.5 GWh of wind energy in 2026 – a visible symptom of grid overload despite record renewable expansion. The four transmission system operators (50Hertz, Amprion, TenneT, TransnetBW) are now demanding that green energy producers co-finance grid expansion, shifting investment costs to producers. These conflicts over grid financing will become a critical regulatory battle in 2026/2027.

RWE and EON agree on massive asset swap: RWE gives up Innogy control, receives renewables from EON in return – the largest restructuring of the electricity sector since the nuclear phase-out. Deal signals a shift away from retail business (Vattenfall, EnBW struggling with customer complaints) toward profit focus on green energy infrastructure. Signs of structural consolidation under pressure from negative prices and electricity market volatility.

Amprion and the transmission system operators present NEP 2037/2045 and demand: renewable energy producers should co-finance grid expansion instead of burdening the public alone. Conflict between green energy lobby and grid infrastructure costs becomes a fundamental debate – French nuclear power plants are increasingly being used to support the German grid. Regulatory battle over cost distribution becomes the central political conflict of 2026.