Grüüün, one of the renewable electricity suppliers in Germany and part of the Münch Energie group, has announced that due to pressures from rising wholesale prices and changes in energy policies, it will cease servicing approximately 200,000 residential customers by October 31, 2026. This company, which began operations in 2024, attributed its decision to exit the market to proposed changes in renewable energy regulations related to the Renewable Energy Sources Act (EEG 2027) as well as increased network costs.
Challenges from Policy Changes and Rising Prices
Grüüün specifically pointed to the government's focus on gas-fired electricity generation and rising network costs, considering these factors a threat to its long-term pricing structure. This decision comes as another company named Stromee has also recently exited the German retail electricity market. This Berlin-based company left the market after a local company in western Germany, SWK Energie GmbH, announced that it had acquired electricity and gas customers in the low five-digit range.
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Concerns About Gas Supply in Winter
The increase in wholesale prices and regulatory changes in Germany have left this sector vulnerable. The exit of these companies is reminiscent of the energy crisis of 2022, during which many small providers were forced to shut down. Currently, Germany is facing historically low gas reserves at its storage sites. According to data, as of October 15, only 60% of Germany's gas reserves were filled, significantly lower than the EU average of 74%.
Gas reserves in the European Union are at their lowest level since 2011, raising concerns about gas shortages in the winter season. However, according to one of Germany's largest gas importers, VNG, Germany is not facing a gas supply shortage despite the historically low levels of gas reserves. Nevertheless, concerns about supply security in the event of a colder winter than previous years continue to rise.
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