Energy Newsletter

In the first quarter of 2026, renewable energies reached 53–54.5% of German electricity consumption, showing massive production growth compared to 2025. Expansion doubled: 7.2 GW was installed in 2022, from 2026 onwards it should be 22 GW annually. This significantly increases the need for electricity storage and grid expansion.

European electricity prices remain coupled to gas prices; Germany pays 2–3 times more than France due to dependence on gas marginal cost pricing. TTF gas prices influence German industrial electricity prices by 40% and household prices by 50–60%. This represents structural geopolitical vulnerability and competitive disadvantage for the German economy.

Amprion and other transmission system operators are expanding critical high-voltage lines to reduce regional bottlenecks. The Ultranet overhead line will be completed by end of 2026, A-Nord to follow in 2027. Current redispatch costs remain substantial due to renewable energy curtailment (3.5 GWh in 12 months).

The EU Court dismissed nine complaints from German municipal utilities against approval of the E.ON/RWE acquisition (EVH/enercity). This drives market concentration forward: RWE, E.ON, EnBW, and Vattenfall control ~70 GW of gas/coal capacity and dominate LNG long-term contracts. Industrial competition intensifies.

Energy authority chief warns AP of critical jet fuel shortage in Europe with only ~6 weeks of reserves remaining. Reflects structural supply chain problems and geopolitical resource vulnerability. Discrepancy between market euphoria (all-time highs) and real supply risks indicates information asymmetry.