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Energy in Germany

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Wind turbines and solar panels at Lisberg Castle in Germany

Energy in Germany is derived primarily from fossil fuels. In 2025, petroleum accounted for 36.0% of primary energy consumption, natural gas for 26.6%, renewable energy for 20.8%, while lignite and hard coal each accounted for around 7%.[1] Nuclear power has not been used for electricity generation since Germany’s last three nuclear reactors were shut down on 15 April 2023.[2] Gross electricity generation in 2025 amounted to 507.5 TWh.[3]

Key to German energy policy is the Energiewende (“energy transition”), which aims to shift the energy system away from fossil fuels and nuclear power towards renewable energy and greater energy efficiency. Germany is to phase out coal-fired electricity generation by 2038 at the latest.[4] German government has set a target for renewable energy to account for at least 80% of gross electricity consumption by 2030.[5]

Energy consumption

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Fossil fuel consumption in Germany, including combined former East and West from 1980 to 2011 from EIA data. Use of coal declined significantly after reunification.

In 2025, energy consumption in Germany amounted to 8,252 PJ, around 13% lower than in 1990. Transport accounted for about 31% of energy consumption, followed by households at 28% and industry at 26%. The commercial and service sector accounted for about 15%.[6] Renewable energy accounted for 23.8% of gross final energy consumption in 2025, with shares of 55.1% in electricity, 19.0% in heat, and 8.0% in transport.[7]

Energy imports

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Germany is highly dependent on imported fossil fuels. In 2025, imports covered 96% of petroleum demand and 89% of natural gas demand. Hard coal has been entirely imported since domestic production ended in 2018.[8] By contrast, lignite was produced domestically and renewable energy was supplied almost entirely from domestic sources. Imports covered 65.6% of Germany's energy requirements in 2025.

Fossil-fuel supplies were diversified following Russia's invasion of Ukraine in 2022 and the subsequent reduction in Russian energy imports.[9] By 2025, Norway accounted for the largest share of both Germany's natural gas and crude oil imports.[10][11] Germany also developed liquefied natural gas (LNG) import capacity, with German LNG terminals accounting for 10.3% of natural gas imports in 2025.

Germany was a net electricity importer in 2025, importing 76.2 TWh and exporting 54.3 TWh, resulting in net imports of 21.9 TWh.[12]

Electricity production by source

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Electricity generation in Germany in terawatt-hours
German electricity by source in 2025
Brown coalHard coalNatural gasWindSolarBiomassHydroOilOther
  •   Brown coal: 67.13 TW⋅h (16.3%)
  •   Hard coal: 26.16 TW⋅h (6.3%)
  •   Natural gas: 53.64 TW⋅h (13.0%)
  •   Wind: 131.17 TW⋅h (31.8%)
  •   Solar: 70.13 TW⋅h (17.0%)
  •   Biomass: 36.06 TW⋅h (8.7%)
  •   Hydro: 16.72 TW⋅h (4.1%)
  •   Oil: 2.82 TW⋅h (0.7%)
  •   Other: 8.93 TW⋅h (2.2%)
Net generated electricity in 2025[13]

Fossil fuels

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Coal power

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Coal is the second-largest source of electricity in Germany. As of 2020, around 24% of the electricity in the country is generated from coal.[14] This was down from 2013, when coal made up about 45% of Germany's electricity production (19% from hard coal and 26% from lignite).[15] Nonetheless, in the first half of 2021, coal was the largest source of electricity in the country.[16]

Germany is also a major producer of coal. Lignite is extracted in the extreme western and eastern parts of the country, mainly in Nordrhein-Westfalen, Sachsen and Brandenburg. Considerable amounts are burned in coal plants near the mining areas to produce electricity and transporting lignite over far distances is not economically feasible; therefore, the plants are located near the extraction sites.[17] Bituminous coal is mined in Nordrhein-Westfalen and Saarland. Most power plants burning bituminous coal operate on imported material, therefore, the plants are located not only near to the mining sites, but throughout the country.[17]

German coal-fired power plants are being designed and modified so they can be increasingly flexible to support the fluctuations resulting from increased renewable energy. Existing power plants in Germany are designed to operate flexibly. Load following is achieved by German natural gas combined cycle plants and coal-fired power plants. New coal-fired power plants have a minimum load capability of approximately 40%, with further potential to reduce this to 20–25%. The reason is that the output of the coal boiler is controlled via direct fuel combustion and not, as is the case with a gas combined-cycle power plant, via a heat recovery steam generator with an upstream gas turbine.[15]

Germany has been opening new coal power plants until recently[when?], following a 2007 plan to build 26 new coal plants.[18] This has been controversial in light of Germany's commitment to curbing carbon emissions.[19] By 2015, the growing share of renewable energy in the national electricity market (26% in 2014, up from 4% in 1990) and the government's mandated CO2 emission reduction targets (40% below 1990 levels by 2020; 80% below 1990 levels by 2050) have increasingly curtailed previous plans for new, expanded coal power capacity.[20][21]

On 26 January 2019, a group of federal and state leaders as well as industry representatives, environmentalists, and scientists made an agreement to close all 84 coal plants in the country by 2038. The move is projected to cost 40 billion in compensation alone to closed businesses. Coal was used to generate almost 40% of the country's electricity in 2018 and is expected to be replaced by renewable energy and natural gas.[22] 24 coal plants are planned to be closed by 2022 with all but 8 closed by 2030. The final date is expected to be assessed every three years.[23]

In 2019 the import of coal rose 1.4% compared with 2018.[24]

The phasing out of black coal (anthracite) was brought forward in 2023 by eight years to 2030, there is no agreement yet on phasing out brown coal (lignite) [25] although the EU gave approval in late 2023 for a €2.6 billion compensation payment to RWE to phase out lignite in the Rhine region.[26]

Natural gas

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National energy policy has shifted towards utilizing natural gas to replace coal and serve as a complementary fuel source as green energy projects are developed. The seaports of Lubmin, Brunsbuettel, Stade, and Wilhelmshaven utilize floating liquefied natural gas floating storage and regasification units to import gas.[27]

Renewable energy

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Years in which the last three renewable power levels achieved
AchievementYearAchievementYearAchievementYear
5%200310%200715%2017[28]

Renewable energy includes wind, solar, biomass and geothermal energy sources.

The share of electricity produced from renewable energy in Germany has increased from 6.3 per cent of the national total in 2000 to 46.2 per cent in 2022.[29] Germany renewable power market grew from 0.8 million residential customers in 2006 to 4.9 million in 2012, or 12.5% of all private households in the country.

Photovoltaic array and wind turbines at the Schneebergerhof wind farm in the German state of Rheinland-Pfalz

In end of 2011, the cumulative installed total of renewable power was 65.7GW.[30] Although Germany does not have a very sunny climate, solar photovoltaic power made up 4% of annual electricity consumption. On 25 May 2012, a Saturday, solar power reached a new record, injecting 22 GW of power into the German power grid. This met 50% of the nation's mid-day electricity demand on that day.[31]

In 2016, renewable energy based electricity generation reached 29.5%, but coal remained a factor at 40.1% of total generation. Wind was the leading renewable source at 12.3%, followed by biomass at 7.9% and solar PV at 5.9%.[32]

In 2020, renewable energy reached a share of 50.9% on the German public grid. Wind power made up 27% of total generation, and solar made up 10.5%. Biomass made up 9.7%, and hydro power made up 3.8%. The largest single non-renewable source was brown coal, with 16.8% of generation, followed by nuclear with 12.5%, then hard coal at 7.3%. Gas mainly provides peaking services, allowing for a generation share of 11.6%.[33]

Solar power

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In 2022, Germany had 66.5 GW of solar power capacity, which generated 62 terawatt hours of power from 2.65 million individual installations.[34]

Wind power

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Wind farms in North Rhine-Westphalia

As of March 2023, there were approximately 28,500 wind turbines in operation in Germany with a combined capacity of 58.5 GW.[35]

Onshore wind capacity in Germany is expected to reach 115 GW by 2030.[35]

Bioenergy

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In October 2016, the German Biomass Research Center (Deutsches Biomasseforschungszentrum, DBFZ) launched an online biomass atlas for researchers, investors and the interested public.[36][37]

Nuclear power

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Grafenrheinfeld Nuclear Power Plant
The Isar Nuclear Power Plant was taken out of service on 15 April 2023

Nuclear power has been a topical political issue in recent decades, with continuing debates about when the technology should be phased out. A coalition government of Gerhard Schröder took the decision in 2002 to phase out all nuclear power by 2022.[38][39] The topic received renewed attention at the start of 2007 due to the political impact of the Russia-Belarus energy dispute and in 2011 after the Fukushima I nuclear accidents in Japan.[40] Within days of the March 2011 Fukushima Daiichi nuclear disaster, large anti-nuclear protests occurred in Germany. Protests continued and, on 29 May 2011, Merkel's government announced that the country would shut down all of its nuclear power plants by 2022.[41][42] Eight of the seventeen operating reactors in Germany were permanently shut down following Fukushima in 2011.

The last operational German reactors Isar 2, Emsland, and Neckarwestheim closed down in April 2023.[43][44]

Energy efficiency

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German Energy Efficiency Targets

The energy efficiency bottom-up index for the whole economy (ODEX) in Germany decreased by 18% between 1991 and 2006, which is equivalent to an energy efficiency improvement by 1.2% per annum on average based on the ODEX, which calculates technical efficiency improvements. Since the beginning of the new century, however, the efficiency improvement measured by the ODEX has slowed down. While a continuous decrease by 1.5%/y could be observed between 1991 and 2001, the decrease in the period from 2001 to 2006 only amounted to 0.5%, which is below the EU-27 level.[45]

By 2030, the German Federal Ministry of the Economy projects an increase in electricity consumption to 658 TWh. The expected increase is due to an expected uptick in electric mobility, more heating through electric heat-pumps, and production of batteries and hydrogen.[46]

Government energy policy

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Germany used to be the fourth-largest producer of nuclear power in the world, but in 2000, the government and the German nuclear power industry agreed to phase out all nuclear power plants by 2021,[47] as a result of an initiative with a vote result of 513 Yes, 79 No and 8 Empty.[citation needed] The seven oldest reactors were permanently closed after the Fukushima accident.[48] However, being an integral part of the EU's internal electricity market, Germany will continue to consume foreign nuclear electricity even after 2022.[49] In September 2010, Merkel's government reached a late-night deal which would see the country's 17 nuclear plants run, on average, 12 years longer than planned, with some remaining in production until well into the 2030s.[50] Then, following the Fukushima Daiichi nuclear disaster, the government changed its mind again, deciding to proceed with the plan to close all nuclear plants in the country by 2022.[51]

After becoming Chancellor of Germany, Angela Merkel expressed concern for overreliance on Russian energy, but the policy of energy imports did not change significantly afterwards.[52]

Prior to the 2022 Russian invasion of Ukraine, Germany was highly dependent on Russian energy, which accounted for half of its natural gas, a third of heating oil, and half of its coal imports.[53][54] Due to this reliance, Germany blocked, delayed or watered down EU proposals to cut Russian energy imports amid the 2022 Russian invasion of Ukraine.[55][56][57] Subsequently, Germany made a radical shift in energy policy, with the goal of independence from Russian energy imports by mid-2024.[58]

Government policy emphasises conservation and the development of renewable sources, such as solar, wind, biomass, water, and geothermal power. As a result of energy saving measures, energy efficiency (the amount of energy required to produce a unit of gross domestic product) has been improving since the beginning of the 1970s.

Speaking at the COP28 climate summit in Dubai in December 2023, German Chancellor Olaf Scholz called for a phase-out of fossil fuels, including coal, oil and natural gas, and reiterated Germany's commitment to be climate neutral by 2045, saying, "The technologies are there: wind power, photovoltaics, electric motors, green hydrogen."[59]

Sustainable energy

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In September 2010, the German government announced a new aggressive energy policy with the following targets:[60]

  • Reducing CO2 emissions 40% below 1990 levels by 2020 and 80% below 1990 levels by 2050
  • Increasing the relative share of renewable energy in gross energy consumption to 18% by 2020, 30% by 2030 and 60% by 2050
  • Increasing the relative share of renewable energy in gross electrical consumption to 35% by 2020 and 80% by 2050
  • Increasing the national energy efficiency by cutting electrical consumption 50% below 2008 levels by 2050

Forbes ranked German Aloys Wobben ($3B), founder of Enercon, as the richest person in the energy business (wind power) in Germany in 2013.[61]

Taxes

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Fossil fuel taxes

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2019 fossil fuel taxes[62]
Gas oil (>50 mg/kg sulfur)Gas oil(≤50 mg/kg sulfur)Heavy oilOther oilsNatural GasLiquefied petroleum gas
unit€/liter€/liter€/kg€/liter€/MWh€/tonne
Taxation0.76350.61350.250.61355.5060.60

Carbon tax

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The German ecological tax reform was adopted in 1999. After that, the law was amended in 2000 and in 2003. The law grew taxes on fuel and fossil fuels and laid the foundation for the tax for energy. In December 2019, the German Government agreed on a carbon tax of 25 Euros per tonne of CO2 on oil and gas companies. The law came into effect in January 2021. The tax will increase to 55 Euros per tonne by 2025.[63] From 2026 onwards, the price will be decided at auction.[64]

Development of carbon dioxide emissions

See also

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References

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