Energy Newsletter

E.ON completes acquisition of British energy supplier OVO and becomes the largest energy supplier in the UK with four million additional customers. The expansion is strategically significant for E.ON's international growth and diversification outside the strained German market. Signals confidence in the energy industry despite German energy transition crises.

Germany is a net electricity exporter again in Q1 2026 with 57% renewable generation and a positive balance of 100-150 million euros – but negative electricity prices, overproduction and lack of storage solutions reveal systemic dysfunction. Renewables are booming technically, but do not solve economic coordination problems.

Germany pays 30 billion €/year in energy subsidies, but continues to have the highest EU electricity prices (37 ct/kWh) and is losing industrial production (-24% decline Feb 2026 vs. trend). Energy transition paradox: technical success with renewables, economic failure in cost control and competitiveness.

Four TSOs (50Hertz, Amprion, TenneT, TransnetBW) received a cumulative 532 billion € since 2010 for grid expansion, but must continue to curtail renewables and struggle with load flow instability. Massive investments reveal structural grid capacity problems despite technical solutions (50Hertz Open Source, Amprion STATCOM).

Major corporation Total Energies is exiting German wind power projects; signals investor uncertainty about profitability and regulation despite subsidies. Puts offshore expansion in the North and Baltic seas under pressure and contradicts energy transition expansion plans.