Energy Newsletter

European gas prices have risen from €30/MWh (September 2025) to €81/MWh (September 2026) – a doubling within one year. EU gas storage levels are at only 64–68% capacity, Germany even below 50%, the lowest level for this time of year in 13 years. The combination of low storage levels, missing LNG capacity, and high demand threatens to lead to massive electricity price increases and supply risks in winter 2026/27.

German household electricity prices at 35.6–38.7 cents/kWh are at the top worldwide among G20 countries. The 1-year electricity futures price has risen to €122/MWh, driven by high gas prices and missing nuclear capacity. The electricity price brake costs the federal government approximately €29.5 billion in 2026, while energy-intensive businesses relocate.

Germany is massively expanding storage capacity: 888 MW in H1 2026, EnBW constructing 400 MW/800 MWh battery in Philippsburg, Vattenfall 254–1,000 MW at former nuclear sites. At the same time, sabotage on critical grid infrastructure is increasing: explosive attacks on 50Hertz and Amprion substations, forest fires at TenneT stations signal serious security risks for electricity supply.

Renewable energies provide 59.1% of German electricity generation (H1 2026), partly exceeding 70% on peak days. At the same time, Germany is missing 9 out of 15 energy transition targets despite one trillion euros in investment (McKinsey). Grid expansion and storage infrastructure are lagging behind rapid capacity additions; the required transmission grid expansion will cost up to €400 billion.

Large energy companies are positioning themselves for system stability: RWE signs nuclear fusion contract with Proxima Fusion, multi-billion euro deals with UAE partners (ADNOC, Masdar) for offshore wind and storage. EnBW and RWE are jointly investing in Schluchseewerk modernization. 450connect joint venture of E.ON and EnBW creates critical dedicated energy networks for stability.