A Shift in Energy Sources: Conventional Energy Regains the Lead Again in Germany's Power Generation
Unprecedented resurgence in traditional power sources over a two-year period.
Let's chat about the interesting twist in Germany's power sector at the beginning of 2025. For the first time in two years, conventional energy sources breached the lead, contributing more to the power grid than renewables! This transformation was due to a 29.2% plunge in wind power generation, as reported by the Federal Statistical Office.
As a result, renewable energy production saw a 17.0% decrease between January and March in comparison to the prior year, whereas coal, natural gas, and other fossil fuels rose by 19.3%. In the initial quarter, a total of 119.4 billion kilowatt-hours of electricity was produced and fed into the grid, a drop of 1.9% compared to the start of 2024. It's worth noting that more than half of Germany's electricity generation (50.5%) was drawn from fossil fuels, compared to 41.5% in the previous year.
However, wind power remained the primary driving force for electricity generation, accounting for a whopping 27.8% of the total, just barely edging out coal with a share of 27.0%. Natural gas took up 20.6%, surpassing the previous year's figure, whereas photovoltaic power jumped by over a third to a share of 9.2%. Biogas contributed 6.1%, with hydropower accounting for 3.8%.
Germany's electricity imports surfaced a 14.9% increase to 19.3 billion kilowatt-hours in the first quarter, while exports dropped by 3% to 16.2 billion kilowatt-hours.
Worth noting, despite the decline in renewable energy, suggesting turbulent weather conditions, renewable energy accounts for a substantial portion of Germany's electricity generation. By the end of last year, renewables already accounted for an impressive 57.7% of total electricity generation[1].
Furthermore, while specific details of fossil fuel usage in Q1 2025 are unavailable, the ongoing trend signals a movement away from fossil fuels toward renewable sources. Companies like EnBW have been ardently investing in energy transition technologies like offshore wind and grid expansion, signaling a steadily decreasing dependence on conventional fossil fuel-based power plants[2].
In conclusion, even though renewable energy continued to maintain a crucial role in the electricity mix, challenges remain in the pace of solar capacity expansion. The trend away from fossil fuels is clear, with sustainable technologies receiving significant investment. Nevertheless, weather conditions and regulatory hurdles persist as key factors shaping Germany's energy landscape[3][4]. Stay tuned for further developments!
[1] ntv.de[2] rts[3] PNE AG annual report (2025 Q1)[4] Stern (April 2025)
The shift in Germany's energy policy has brought renewed attention to conventional energy sources, with fossil fuels contributing a higher percentage to the power grid in comparison to renewables, as reported in the first quarter of 2025. The environmental-science community and industry are closely watching the trends in renewable energy production to see if the decreased generation in Q1 is merely a temporary setback or a sign of a larger issue. Meanwhile, financial institutions have taken notice of investments in energy transition technologies, expecting a continued decrease in dependence on conventional fossil fuel-based power plants.
