Energy Newsletter

Germany achieved a renewable energy share of 70% in July 2026, demonstrating the successful acceleration of expansion under Habeck. In parallel, electricity prices are falling due to increased supply and grid charges were reduced by 57% in 2026. This development marks a turning point: the fossil energy system is being structurally displaced, while gas imports are becoming significantly more expensive.

After abandoning Russian gas deliveries, Germany now pays €60/MWh instead of €12/MWh (2020), while gas storage is only 45-50% full. Industry is postponing investments and planning production relocations, with 1/3 of surveyed companies pausing projects. Dependence on Norwegian and liquefied gas becomes a critical vulnerability for industry and winter 2026/27.

RWE is advocating in internal papers for long-term gas reserves and wants to displace battery storage from grid expansion to secure fossil backup insurance. This stands in direct conflict with energy transition goals and reveals resistance from major corporations against storage decentralization. The conflict between legacy structures (RWE, Amprion) and transformation jeopardizes expansion targets.

Germany's four transmission system operators (TenneT, Amprion, 50Hertz, TransnetBW) are building the foundation of the energy transition with €6.5 billion in state subsidies in 2026. TenneT and 50Hertz are hitting capacity limits (50Hertz is not issuing new connections before 2029), while redispatch costs (emergency grid interventions) are reaching record levels. Grid congestion is becoming a critical brake on expansion.

Vattenfall CEO warns of critical challenges in energy transition implementation, pointing to high grid charges and storage costs that threaten German industrial competitiveness. Meanwhile, analysts report 2-3x higher 2026 wholesale prices in Germany (€99.60/MWh) versus France. Energy-intensive industry is losing competitive advantage despite renewable expansion.