Renewables Continue to Dominate Germany’s Electricity Generation, Overtaking Fossil Fuels
Germany’s power mix reached a historic milestone in 2024, with renewable energy sources now accounting for 59% of the country’s electricity generation, a significant jump from 56% in 2023. This shift marks a dramatic move away from fossil fuels, positioning renewable energy as the dominant source in Germany’s energy system. The most significant contributor to this increase was onshore wind energy, which accounted for 25.9% of the total energy mix, despite less than optimal wind conditions. Solar energy, which experienced the largest growth in 2024, benefitted from favorable weather and an increase in installations, driven by simplified policies and incentives.
Policy Measures and Support for Solar and Wind Energy Expansion
Germany’s Supportive Energy Policies Fuel Rapid Growth in Renewable Deployment
The rapid rise in Germany’s renewable energy share can be attributed to several key policy measures that have accelerated the deployment of wind and solar energy. Chris Rosslowe, a senior energy analyst at Ember, emphasized the importance of Germany’s concerted efforts to simplify permitting and provide financial support for renewable projects. Notably, solar energy growth has been driven by an increase in installed capacity since 2022. The government introduced measures to reduce bureaucracy, such as simplified grid connections for small photovoltaic (PV) systems, greater remuneration for solar energy, and raised maximum bids in solar tenders. These measures have made it easier for citizens to install solar panels, even on balconies, as part of a broader push to increase renewable energy adoption. Additionally, the German government’s decision to prioritize renewables as a public interest has unlocked faster permitting and more streamlined processes for developers.
Fossil Fuel Decline and Transition to Cleaner Energy
Coal and Gas Usage Drops as Renewables Gain Ground in Energy Mix
Germany’s shift toward renewable energy has coincided with a notable decline in fossil fuel use. Figures from the Bundesnetzagentur reveal that the share of fossil fuel-based electricity generation fell by 10.9% in 2024. Lignite (brown coal) usage dropped by 8.8%, and hard coal use plummeted by 31.2%, signaling the country’s ongoing departure from coal power. However, fossil gas usage saw a rise of 8.6%, accounting for 13.2% of the total power generation. This increase was largely driven by lower gas prices, which provided an economic incentive for its use. One notable change in 2024 was the absence of nuclear power in Germany’s energy generation mix, as the last nuclear plants were decommissioned in April 2023.
Germany on Track for Climate Neutrality by 2045
Strong Progress Toward Renewable Goals, But Continued Expansion Needed
Germany has set ambitious climate targets, aiming to be climate-neutral by 2045. In the short term, the country has set a goal to reduce its emissions by 65% by 2030 compared to 1990 levels. The shift to renewables is a key part of achieving these targets, with renewable energy sources now forming the backbone of Germany’s energy system. According to Rosslowe, these 2030 targets are within reach, but continued efforts will be needed to sustain the momentum. Key areas for focus include expanding the renewable energy grid, improving the flexibility of the energy system through energy storage, and increasing the adoption of demand-side energy management solutions to balance supply and demand efficiently.
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