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Renewable energy takes center stage in Germany as fossil and nuclear power decline


Renewable energies have energetically supplanted nuclear power, while fossil fuel production has decreased. This decline was balanced by electricity savings, self-generated photovoltaic power, reduced demand, and imports. Consequently, electricity prices have returned to 2021 levels.

During the final operational year, spanning from April 16, 2022, to April 15, 2023, German nuclear power plants contributed 29.5 TWh of electricity, constituting 6.3 percent of the total public electricity generation. Despite their closure, nuclear energy remains a topic of contention. Amid increased electricity imports in the summer of 2023, there were assertions that Germany had transitioned into a net electricity importer or that coal had replaced nuclear power.

In the initial year following the cessation of nuclear power, approximately 270 TWh of renewable electricity was generated, marking a 33 TWh increase compared to the previous period. Between April 2023 and April 2024, renewable energy sources accounted for 58.8 percent of the electrical load, encompassing both public electricity consumption and network losses.

Reduction in fossil fuel usage and electrical load

Renewable energy generation rises as fossil fuel-based electricity declines. In the year following nuclear power cessation, fossil fuel sources produced 154.4 TWh, a 26% decrease. Their share of net public electricity fell to 33.7%. Factors include high natural gas and coal prices, and increased CO2 certificate costs. Overall electrical load decreased by 2.1% to 459 TWh due to industrial and residential electricity-saving measures, reduced production, and more self-generated photovoltaic power.

 

Electricity imports are more affordable during summer

In the first year following the shutdown of nuclear power plants, imports surged, despite Germany possessing sufficient power plant capacity for self-sufficiency. With approximately 90 GW of stable generation capacity within Germany offsetting a load of around 75 GW, including renewable producers like solar (approx. 85 GW) and wind (approx. 70 GW), as well as pumped storage (approx. 9.5 GW), the country maintained ample capacity.

Prof. Burger, responsible for the Fraunhofer ISE data platform energy-charts.info, clarifies that the rise in imports to 23 terawatt hours, surpassing the previous year's export of 21.3 terawatt hours, isn't due to inadequate generation capacity in Germany. Instead, he attributes it to substantially lower electricity prices on the market. In the summer, renewable power plants in the Alps and across Denmark, Norway, and Sweden generated cost-effective electricity, leading to decreased competitiveness of German coal-fired power plants. Consequently, a substantial quantity of environmentally friendly electricity flowed into Germany through imports.

Furthermore, during summer, numerous nuclear power plants in France resumed operations after the setbacks in 2022 and exported surplus electricity.

Electricity prices on the exchange persist in their downward trend

Day-ahead electricity prices dropped to April 2021 levels, even lower than before the Ukraine war. In April 2024, they averaged 48.39 euros/MWh or 4.8 cents/kWh. Household electricity prices for new customers also returned to June 4, 2021 levels.

From mid-April 2023 to mid-April 2024, Germany effectively compensated for the loss of nuclear power. Increased imports weren't due to capacity issues but to competitive prices from renewable plants in the Alps and Scandinavia.

 

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