Germany‘s renewable power capacity is projected to reach 509.9 gigawatts (GW) by 2035, which represents a CAGR of 9.7% between 2024 and 2035, a new report by GlobalData has found.
‘Germany is accelerating its clean energy transition with ambitious targets for renewables, hydrogen, and LNG diversification, underpinned by robust federal policies,’ GlobalData commented, noting that the EU’s largest economy has officially phased out nuclear power as of 2023, and is committed to phasing out coal-fired generation by 2038, with discussions underway to advance this deadline to 2030.
Renewable electricity generation
According to GlobalData’s report, Germany Power Market Trends and Analysis by Capacity, Generation, Transmission, Distribution, Regulations, Key Players and Forecast to 2035, last year, renewables accounted for 54.7% of Germany’s electricity generation, led by wind and solar photovoltaic (PV) investment.
This is expected to rise to 82.9% of the national electricity mix by 2035, providing some 628 terawatt hours of power, due to large-scale solar PV expansion and both onshore and offshore wind development.
‘Significant investment’
“Germany is targeting 80% renewable generation by 2030, supported by its Renewable Energy Act (EEG), National Hydrogen Strategy, and significant investment in grid modernisation,” commented Mohammed Ziauddin, power analyst at GlobalData.
“The country targets 30GW of offshore wind capacity by 2030. Complementary policies such as the Power Plant Security Act and H2Global are creating certainty for renewable investors and hydrogen developers.”
Geopolitical factors are also at play – the Russia-Ukraine conflict hastened Germany’s efforts to cease Russian gas imports, and diversify its supply chain for LNG imports from Norway, the Netherlands, Belgium, and the United States. The country is also forging hydrogen partnerships with countries including Canada, Norway, and Namibia.
Implementation challenges
At the same time, challenges remain, with periods of low renewable output – known locally as ‘Dunkelflaute’ – and the slow rollout of new gas-fired capacity online to balance intermittent renewables, constraining development.
As GlobalData noted, regulatory hurdles, rising costs, and slow permitting processes for wind projects also continue to impact deployment rates.
“Germany’s pathway to 80% renewables by 2030 and a fully decarbonised power sector by 2045 is ambitious but achievable,” Ziauddin added. “With solar, wind, and hydrogen leading the transformation, complemented by grid modernisation and storage investments, Germany is positioned to remain at the forefront of Europe’s energy transition despite geopolitical and structural challenges.” Read more here.
