Energy Newsletter

European gas prices have risen from €30/MWh (Sept. 2025) to €81/MWh (Sept. 2026) – more than a doubling. EU gas storage is at only 63-67% with Germany below 55%, the lowest level in 13 years. Experts warn of a tight winter 2026/27 with risks to electricity prices and supply security.

In Germany, several coordinated attacks on critical electricity infrastructure were reported in September 2026, damaging substations and lines operated by transmission system operators. RWE CEO calls for stronger protection of critical infrastructure; 50Hertz and other TSOs are directly affected. The attacks reveal significant security gaps in the German power grid.

Germany pays the highest electricity prices in Europe at 38.7 ct/kWh (comparison: 2026 top among G20 nations). Day-ahead prices reach €697/MWh during peak load times; 1-year forward prices stand at €122/MWh. Prices are driven by gas price spikes, high grid charges, and energy transition costs.

Germany added 888 MW of battery storage capacity in the first half of 2026 – more than in all of 2025. EnBW is building 400 MW/800 MWh BESS in Philippsburg; Vattenfall launches 1 GWh storage at a former nuclear site. Battery storage is becoming key technology for grid stability and managing dark doldrums.

Germany has invested over 1 billion euros in the energy transition but is missing 2030 targets (80% renewable share, currently ~57-59%). Power expansion, particularly onshore wind, lags plans; meanwhile, household electricity prices have skyrocketed. McKinsey and analysts increasingly criticize the cost-effectiveness and planning uncertainty of German energy transition.