Energy Newsletter

The CEOs of Vattenfall, RWE and EnBW criticize Energy Minister Katherina Reiche's energy policy as a "roller coaster" in a joint appeal and warn of economic damage from contradictory requirements. The government systematically favors gas-fired power plants over battery storage in electricity backup auctions, despite storage being more cost-effective. This jeopardizes Germany's energy transition and increases dependence on fossil fuels.

Transmission system operator Amprion must increasingly intervene in electricity production to balance grid bottlenecks – a sign of structural instability in the German power grid. The expansion of electricity highways (Ultranet by end of 2026, A-Nord 2027) is intended to reduce congestion costs but is insufficient. France's nuclear power plants are becoming increasingly critical for German grid stability.

In the first quarter of 2026, renewable energies cover 53 percent of German electricity consumption – a record. Nevertheless, electricity prices remain elevated because price formation is determined by more expensive gas-fired power plants and storage capacity is lacking. The expansion pace doubles from 2026 (22 GW annually), but insufficient grid expansion and storage systems are slowing the transition.

The energy crisis caused by war in Iran and geopolitical tensions leads to gas shortages and electricity prices of 120–150 Euro/MWh in Germany and Italy, while France remains at 60–80 Euro/MWh with nuclear power. Europe loses approximately 28 billion dollars through energy costs; in Germany, gas still influences 40 percent of electricity price formation. Structural dependence on gas imports and lack of diversification are critical vulnerabilities.

The Federal Government approves 6.5 billion euros from the Climate and Transformation Fund for the four transmission system operators (TenneT, 50Hertz, Amprion, TransnetBW) to reduce network fees and relieve consumers. At the same time, the TSOs launch the new maturity level procedure for grid connections on April 1, 2026 to accelerate processes. This is intended to create investment security for decentralized storage and renewable energy systems.