Germany’s electricity sector is entering a period of significant change as rising power demand, renewable growth and the phase-out of coal reshape the country’s energy system.
Installed renewable capacity is expected to increase from around 73% of the power mix in 2025 to almost 88% by 2035, while renewable generation could approach 80% over the same period, according to GlobalData.
Solar PV, offshore wind and onshore wind are expected to drive much of the expansion, while gas-fired generation is likely to provide a flexible back-up as thermal capacity declines.
Germany’s new capacity market, expected to be fully operational by the end of 2027, is intended to strengthen security of supply as coal is phased out by 2038 and nuclear power remains offline.
At the same time, the EEG-2027 reform will change how renewable electricity is supported, with fixed feed-in tariffs being phased out.
Electricity demand is forecast to rise from approximately 466TWh in 2025 to more than 576TWh by 2035, increasing pressure for investment in transmission infrastructure.
New high-voltage connections will be needed to transport electricity from offshore wind projects in the North Sea and Baltic Sea to industrial centres in southern Germany.
Delays to transmission projects could increase curtailment (deliberate reduction in electricity generation) and create supply constraints.
Investment is expected to focus on renewables alongside hydrogen, storage, flexible generation and long-distance transmission as Germany works towards 80% renewable electricity by 2030 and climate neutrality by 2045.
Copyright © 2026 Energy Live News LtdELN