09/07/2026
Still reeling after the heatwave? Tired of paying some of Europe’s most expensive electricity bills?
Bad news if you live in Germany, the Bundestag just decided to make them even more expensive.
Instead of creating a market where clean flexibility solutions can compete on an equal playing field, the contentious Strom VKG law will subsidise new fossil gas. Not only that, but the bid cap for new capacity was increased by 41%, to €244,000/MW, now the highest in Europe.
This is a scheme that could cost consumers more than €4 billion by 2031 in household electricity bills… in a country that already has the second-highest household electricity prices in Europe.
Capacity markets in Europe are turning into the Wild West. The European Commission needs to stand up and enforce its own rules and stop national schemes from locking in expensive fossil gas.