Energy Newsletter

Minister of Economy Katherina Reiche, formerly with E.ON, plans major changes to renewable energy expansion and is warned by Vattenfall CEO Zurawski of a "Reiche dip" in solar and wind power. Plans to cut EEG subsidies and grid connection limits are criticized by energy corporations as a brake on the energy transition and trigger debates about conflicts of interest.

Germany pays €0.38/kWh, the highest electricity prices in the EU, while simultaneously achieving solar records (61.8% renewable share H1 2026) that trigger extreme price volatility (€86→€566/MWh within hours). The merit-order effect of renewable energy leads to grid instability and high redispatch costs for industrial customers.

German gas imports now cost €60/MWh instead of €12/MWh (2020) as Russian supplies disappear and Norway exports less. Electricity prices are thus directly coupled to volatile gas prices, while storage levels remain historically low and winter prices for 2026/27 are expected to spike.

The government acquires majority stakes in TenneT (25.1%), 50Hertz (20%), and TransnetBW (24.95%) via KfW to accelerate power highway expansion. The new maturity level procedure from 2026 and Ultranet cable innovation (Amprion) are intended to increase south-north transmission capacity, but reveal structural limits of decentralized renewable expansion.

Germany generates 61.8% renewable share (H1 2026), solar expansion booms (+10% YoY), but EnBW and other corporations question wind power expansion targets due to exploding costs in turbines, logistics, and grid connections. The 22 GW annual targets from 2026 onward are thus at risk, even as imports decline from 9.6 TWh (2025) to 1.25 TWh (H1 2026).