BERLIN, September 30, 2025: Renewable energy sources accounted for 57 percent of Germany’s electricity consumption in the first nine months of the year, maintaining the same level as in the corresponding period of 2024, according to preliminary data released Tuesday by the Centre for Solar Energy and Hydrogen Research Baden-Württemberg (ZSW) and the German Association of Energy and Water Industries (BDEW). The figures highlight the continued dominance of renewables, primarily wind and solar, in the country’s energy mix.
Policy reforms reshape Germany’s approach to renewable energy development and market support.
Solar power generation increased by nearly 25 percent compared to the same period last year, boosted by strong solar irradiance and significant new capacity additions. However, electricity output from onshore wind farms declined by 12 percent, with meteorological conditions in the first quarter cited as the primary cause. Germany’s gross electricity production rose 0.9 percent year-on-year between January and September. Fossil fuels still played a notable role, with lignite and hard coal collectively accounting for just over 20 percent of the power mix.
Gas-fired plants contributed approximately 16 percent, reflecting their use as a stabilizing source amid fluctuating renewable output. Federal Minister for Economic Affairs and Energy Katherina Reiche said on Tuesday that the government is adjusting its energy transition strategy in response to slower-than-expected growth in electricity demand. Speaking at a press briefing in Berlin, Reiche confirmed that ongoing reviews include a potential phase-out of subsidies for small-scale rooftop solar systems. The government’s current goal of raising the share of renewable energy to 80 percent by 2030 remains unchanged.
Solar power generation surges while wind output declines
The German cabinet earlier this month approved a shift in renewable energy support mechanisms, transitioning away from fixed feed-in tariffs toward more market-based instruments such as competitive auctions and contracts for difference. The new framework is intended to better align with energy market dynamics and reduce public expenditure on renewable subsidies. During the first seven months of 2025, Germany added approximately 8.65 gigawatts of new renewable energy capacity, led by solar photovoltaic installations and onshore wind developments.
Offshore wind expansion, by contrast, recorded no net increase in capacity during the same period. Industry groups have attributed the stagnation to regulatory delays and auction design challenges, and have urged reforms to streamline permitting and enhance investment incentives. Despite the stable share of renewables in consumption, infrastructure development continues to lag. Transmission system operators reported ongoing delays in major grid expansion projects needed to accommodate higher volumes of variable renewable electricity.
Renewable energy integration faces infrastructure challenges
The government has acknowledged the bottleneck and is conducting a nationwide review of grid investment priorities to accelerate integration. Energy regulators have also initiated a review of grid fee structures to ensure a more equitable distribution of costs among consumers and producers. The proposed revisions are expected to address regional disparities in network charges, particularly affecting states with high renewable generation. Germany’s electricity market remains one of the largest in Europe, and its transition to a predominantly renewable-based system is closely monitored by industry stakeholders and policymakers across the region.
With electricity demand projected to stabilize over the next two years, the emphasis has shifted to enhancing grid reliability, streamlining permitting procedures, and optimizing energy system costs while maintaining climate targets. The latest data reinforces Germany’s position as a global leader in renewable energy deployment, although challenges remain in balancing production, consumption, and infrastructure development. The government is scheduled to publish its full-year energy balance report in early 2026. – By EuroWire News Desk.