Energy Newsletter

Renewable energies (wind, sun, water) cover over 58 percent of German electricity consumption for the first time – a record. Germany became a net exporter of electricity again in 2026 thanks to significantly increased exports and declining imports. However, discussions reveal tensions: electricity prices remain elevated despite high renewable energy share, grid expansion and flexible backup capacities remain critical.

EnBW begins construction of a 400-megawatt battery storage facility with commissioning by end of 2027 in Philippsburg. The project is financed through electricity sales revenues and is part of a 2.5-GWh storage initiative with VPI and Elements Green. Battery storage is considered critical for power grid stability and flexibility during periods of low renewable generation.

The Federal Republic acquires 25.1% of Tennet Germany through KfW – the state is now involved in TenneT, 50Hertz, and TransnetBW, with only Amprion remaining private. This secures billions in investments in power highways and grid expansion. The strategic nationalization of critical infrastructure reflects challenges in private financing.

Extreme summer temperatures led to record peak electricity prices in Germany, Belgium, and the Netherlands. Paradox: Despite high solar output, gas marginal costs (merit order) drive prices, and Germany pays ~37 cents/kWh in household prices higher than the EU average. Volatility remains a core challenge of the energy transition.

The Greens call for abolition of regional electricity price zones and a unified national electricity price. Background: Bottlenecks in the transmission network lead to different prices North/South; debate shows tension between market design, European electricity flows, and distributional fairness. Regulatory redesign of the electricity market is likely.