Germany's Power Market Shift: Rising Clout and Supply Challenges

Germany's power market landscape has shifted, amplifying the influence of leading producers RWE, LEAG, and EnBW, according to the country's cartel office. This escalation in clout leaves the market susceptible to supply risks and heightened dependence on imported electricity.

The Bundeskartellamt's recent annual report, which evaluated data from May 2024 to April 2025, revealed that Germany's move away from coal and nuclear energy diminished its flexible power supply options. This shift has made the remaining power plants essential in meeting domestic demand.

In response to the energy crisis fueled by Russia's conflict in Ukraine, Germany reactivated reserve stations temporarily. However, it returned to its initial strategy to phase out coal as of early 2024. The report also notes that RWE and LEAG exceed thresholds for market dominance, with EnBW nearing the threshold. The anticipated impact of future power plant tenders is expected to reshape market concentration significantly.