Germany's electricity generation from renewable sources reached a historic high in 2024, accounting for a remarkable 62.7% of the total share. Solar energy contributed a new record of 72.2 terawatt-hours (TWh), while the continued expansion of photovoltaics exceeded the federal government's targets. The Fraunhofer Institute for Solar Energy Systems ISE's latest report revealed that Germany's efforts to reduce reliance on fossil fuels were more successful than ever, with a significant decline in coal-fired electricity generation, resulting in the lowest carbon dioxide emissions from the country's electricity mix in history.

Source: Fraunhofer ISE

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Wind and solar energy lead the way

Wind power remained the dominant source of electricity, contributing 136.4 TWh or 33% of net public electricity generation. While onshore wind generation saw a slight dip, offshore wind production showed positive growth. However, the expansion of wind energy has not kept pace with planned targets, with only 2.44 gigawatts (GW) of onshore wind power installed by November, far below the anticipated 7 GW.

Meanwhile, solar power systems generated 72.2 TWh, a surge of 18% from the previous year. Photovoltaic capacity grew beyond expectations, with 13.3 GW installed by November 2024. Solar energy now makes up 14% of Germany's electricity generation, with July 2024 seeing the highest solar production ever recorded.

Decline of coal and nuclear energy

Hydropower and biomass also contributed significantly, with hydropower generating 21.7 TWh and biomass producing 36 TWh. Overall, renewable sources accounted for 275.2 TWh of electricity in 2024, marking a 4.4% increase from the previous year. The share of renewable energy in Germany's electricity mix rose to 56%, up from 55.3% in 2023.

The shift towards renewables has led to a dramatic reduction in CO2 emissions, with electricity-related emissions halving since 2014. In 2024, CO2 emissions from electricity generation were 58% lower than in 1990.

2024 also marked the first full year without domestic nuclear power generation in Germany since 1962. The closure of the last three nuclear plants in April 2023 meant that the energy previously supplied by nuclear plants was replaced by renewable sources.

Coal-fired power generation continued its decline, with lignite output dropping by 8.4% and hard coal production falling by 27.6%. This trend was offset by an increase in natural gas-based generation, which rose by 9.5% compared to 2023.

Fraunhofer ISE

Battery storage systems developing rapidly

Parallel to the expansion of renewable energy capacity in Germany is the increasing demand for storage capacity. Decentralized battery storage systems are particularly well suited to buffering the generation of wind and solar power. New photovoltaic systems in private households are usually installed together with a home storage system. However, most small systems still lack the intervention options for grid-friendly operation. In the large-scale storage segment, the installed capacity could multiply over the next few years if all of the pre-registered projects in the Federal Network Agency's market master data register are implemented.

In 2024 the installed battery capacity increased from 8.6 to 12.1 GW, and the storage capacity from12.7 GWh to 17.7 GWh. The capacity of German pumped storage plants is around 10 GW

Germany also experienced a shift in electricity trade, with a net import surplus of 9.2 TWh. The country imported 24.9 TWh, primarily from France, Denmark, and other neighboring countries, while it exported electricity to Austria, Poland, and the Czech Republic.

Despite a significant increase in electricity exchange prices in late 2024, Germany's capacity to produce electricity in winter ensured continued exports. The average electricity price fell by 15.5% to €78.01/MWh, reflecting more stable energy costs compared to the energy crisis-driven spike in 2022.

As the nation continues to reduce its reliance on fossil fuels, Germany's electricity grid is becoming cleaner and more sustainable, with significant strides in renewable energy expansion and a reduced carbon footprint.