Two startup electricity retailers in Germany have recently announced they would cease operations as spiking wholesale prices amid the gas price surge are pressuring the industry again, and this time the pressure is compounded by plans for renewable policy changes.
Renewable electricity provider Grüüün, part of Münch Energie Group, early this month said it would discontinue servicing about 200,000 residential customers as of October 31, 2026, and these will now have to switch to other providers.
Grüüün, which launched operations in 2024, attributed its decision to fold to Germany’s proposed changes to its renewable energy policy, including the upcoming overhaul of the Renewable Energy Sources Act (EEG 2027), the government’s focus on gas-fired power generation, and rising grid charges that have disrupted its long-term pricing structure.
Another startup, Berlin-based Stromee, has also reportedly exited the German retail market after a local utility in western Germany, SWK Energie GmbH, said this week that it had taken over power and gas customers “in the low five-digit range.”
The wholesale power price spikes and the regulatory shifts in Germany have made the sector vulnerable, with market exits reminiscent of the 2022 energy crisis when numerous small providers were forced to fold, Bloomberg notes.
This year, Germany is also facing the start of the winter with historically low levels of gas in storage sites. As of October 15, Germany’s gas storage sites were 60% full, well below the EU average of 74%, according to data by Gas Infrastructure Europe. The EU storage levels are at their lowest since at least 2011, raising concerns that a cold winter could lead to gas shortages.
Thanks to diversified import capabilities, Germany doesn’t face a gas supply shortage despite record-low levels of natural gas in storage sites, one of the biggest German gas importers, VNG, said at the end of last month.
Low stockpiles in Germany’s vast storage, the world’s fourth-largest, have prompted concerns about supply security if the coming winter turns out much colder than previous winters.
By Michael Kern for Oilprice.com
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