Feedback From Our Berlin Utilities Trip: Germany | Utilities & Clean Energy

Research evidence excerpt

Feedback From Our Berlin Utilities Trip: Germany | Utilities & Clean Energy

Germany | Utilities & Clean Energy EquityJulyResearch9, 2026

Feedback From Our Berlin Utilities Trip

We recently hosted our first Berlin bus tour, meeting with management

teams from German utilities, regulators (BNetzA), and industry experts.

Discussions focused on the renewable growth outlook, the upcoming RP5

regulatory framework, CCGT tenders, and the evolving political landscape

shaping Germany's energy agenda. Key takeaways are summarised below.

Please reach out if you would like to discuss our views in more detail.

Please reach out to schedule a call to discuss our views in more detail. The discussion is

particularly relevant for RWE, Elia, and E.ON.

Bnetza (Regulator): We hosted a member of the regulatory team, Adrian Belz. A draft WACC

for gas distribution grids is expected in August/September. Most of the discussion focused on

key parameter changes under the WACC approach, including different tenors for the risk-free

rate, the market risk premium methodology, the cost of debt, and other inputs. Also in focus

was benchmarking methodology, where there is debate around the treatment of redispatch

costs. For TSOs, the discussion centred on the cost-plus approach, potential for capex adders,

and the incentive framework. Overall, the regulator appeared more constructive on measures

to accelerate German grid development.

RWE (Head IR| Buy Rating). The discussion focused on the company’s recent acquisition of

a 35% stake in Amprion to understand the rationale for the deal. Where the increased stake in

Amprion is viewed as an opportunistic expansion rather than a strategic shift toward broader

grid exposure. The company confirmed that they assumed a realised (all-in) RoE post (post-