Germany Warned of Potential Power Supply Gap Amid Renewable Goals

Germany’s energy future could be at risk if the expansion of renewable energy generation does not proceed as planned. The Federal Network Agency, known as Bundesnetzagentur, issued a report on Wednesday highlighting potential gaps in power supply unless the country meets its ambitious energy policy objectives. The federal regulator emphasized that while Germany’s power supply is secured through 2035, achieving this depends on increasing wind and solar power capacity, as well as establishing flexible energy sources like gas-fired power plants.

In the report, Katherina Reiche, Germany’s Minister of Energy and Economic Affairs, noted, “Under certain scenarios, a supply gap could arise.” The report outlines concerns that insufficient flexibility within the electricity system could hinder the ability to meet rising demand stemming from new consumption trends, such as electric vehicles and heat pumps.

Need for Pragmatic Energy Policies

During a conference earlier this week, Minister Reiche urged for a more pragmatic approach to Germany’s energy strategy. Currently, approximately 60% of the nation’s electricity is derived from renewable sources. “Yes, we should continue to invest in renewables, but we also need to ensure our security of supply and its affordability,” she stated on Monday.

Germany is striving to enhance its solar and wind power sectors through ambitious goals and legislative reforms aimed at simplifying and expediting the permitting processes. Nonetheless, the country is falling short of its official targets for both onshore and offshore wind energy. The government aims to install 10 GW of wind power capacity annually, with a goal for renewables to constitute 80% of electricity generation by 2030.

Despite these efforts, industry associations reported stagnation in offshore wind power installations during the first half of 2025. As of June 30, the capacity stood at 9.2 GW, unchanged from the end of 2024. Additionally, the wind and solar power output in Germany plunged to its lowest levels in a decade between January and April, largely due to adverse weather conditions. This decline underscores the challenges faced in securing a reliable energy supply during the ongoing energy transition.

Increased Reliance on Fossil Fuels

As a result of the reduced generation from renewable sources, Germany increased its reliance on gas and coal, with production rising by 10% year-on-year. The share of hydrocarbons in the energy mix has now reached its highest level in seven years, raising concerns about the sustainability of the country’s energy policies.

The findings from the Bundesnetzagentur report serve as a crucial reminder that while Germany makes strides toward a greener future, the need to balance renewable growth with energy security remains paramount. The government’s approach will ultimately determine whether it can navigate the complexities of the energy transition without compromising supply stability.