In a transformative year for its energy landscape, Germany saw renewables soar to over 57% of its electricity mix in 2023, even as it navigated a landmark nuclear phase-out and a significant drop in total power generation.
Key Takeaways
- In 2023, Germany's total gross electricity generation reached 488.8 TWh, a decrease of 4.7% from 2022
- Renewables accounted for 57.5% of Germany's electricity mix in 2023, up from 52.5% in 2022, totaling 281.1 TWh
- Wind power generated 136.4 TWh in 2023, representing 27.9% of total electricity production
- Solar PV installed capacity grew by 14.6 GW in 2023 to 81.8 GW total
- Onshore wind added 4.2 GW capacity in 2023, reaching 59.3 GW
- Offshore wind added 1.5 GW in 2023, total 8.0 GW
- Lignite production volume was 123.5 million tons in 2023, down 18% from 2022
- Hard coal production for power fell to 25.4 million tons in 2023
- Lignite power plants operated at 39% load factor in 2023
- Germany's three remaining nuclear plants shut down on April 15, 2023, ending 62 TWh annual output
- Nuclear share dropped to 0.2% of electricity in 2023 from 6% in 2022
- Isar 2, Emsland, and Neckarwestheim 2 were last reactors, capacities 1.4 GW, 1.4 GW, 1.3 GW
- Total final energy consumption in Germany was 7,755 TWh in 2023, down 2.1%
- Electricity consumption gross was 464.9 TWh in 2023, -4.9% yoy
- Household electricity use averaged 3,200 kWh per capita in 2023
Renewables now dominate Germany's electricity mix, even as total power generation falls.
Electricity Production
- In 2023, Germany's total gross electricity generation reached 488.8 TWh, a decrease of 4.7% from 2022
- Renewables accounted for 57.5% of Germany's electricity mix in 2023, up from 52.5% in 2022, totaling 281.1 TWh
- Wind power generated 136.4 TWh in 2023, representing 27.9% of total electricity production
- Solar PV production hit a record 61.4 TWh in 2023, 12.6% of the mix
- Biomass contributed 41.8 TWh to electricity generation in 2023, about 8.5%
- Hydroelectricity produced 20.5 TWh in 2023, down due to low precipitation
- Lignite-fired power plants generated 68.4 TWh in 2023, 14% of total
- Hard coal power output fell to 47.2 TWh in 2023, 9.7% share
- Natural gas power generation was 40.1 TWh in 2023, 8.2%
- Nuclear power ceased after April 2023, contributing only 0.9 TWh for the year
- Onshore wind capacity reached 59.3 GW by end of 2023
- Offshore wind capacity was 8.0 GW in 2023
- Total renewable capacity installed was 157 GW in 2023
- Coal power capacity declined to 37.5 GW in 2023
- Gas-fired capacity stood at 32.4 GW end-2023
- Electricity exports from Germany totaled 49.7 TWh in 2023
- Imports were 36.2 TWh in 2023
- Peak load in 2023 was 75.8 GW on January 12
- Average wholesale electricity price was €93/MWh in 2023, down from €257 in 2022
- Retail electricity price for households averaged 40.2 ct/kWh in 2023
Electricity Production Interpretation
While Germany spent 2023 powering down its overall generation like a cautious pensioner, its renewable sector partied like a rock star, claiming a record 57.5% of the electricity mix and sending fossil fuel's share and wholesale prices into a satisfying nosedive.
Energy Consumption
- Total final energy consumption in Germany was 7,755 TWh in 2023, down 2.1%
- Electricity consumption gross was 464.9 TWh in 2023, -4.9% yoy
- Household electricity use averaged 3,200 kWh per capita in 2023
- Industry electricity consumption 178 TWh in 2023, down 7%
- Transport sector energy use 2,432 TWh, 30% of total, mostly oil
- Heat consumption 1,248 TWh, 38% from gas
- Primary energy consumption per GDP unit fell 1.5% in 2023
- Electrification rate in final energy rose to 21% in 2023
- Gas consumption total 852 TWh in 2023, -14% from 2022
- Oil consumption 1,890 TWh, stable
- Energy intensity improved by 22% since 2000
- 45% of households used heat pumps or biomass for heating in new installs 2023
- Total grid losses 4.2% of electricity in 2023
- EV stock reached 1.4 million, 3.5% of vehicles, consuming 12 TWh electricity
- Total electricity demand 512 TWh in 2022
- Industry energy consumption 2,200 TWh primary 2022
- Households 1,100 TWh final energy 2022
- Gas demand 986 TWh 2022
- Oil 1,950 TWh primary 2022
- Energy productivity up 1.8% 2022
- Heat demand met by renewables 17.6% 2022
- District heating 14% of heat supply 2022
- EV electricity use 10 TWh 2022
- Total primary energy 10,400 TWh 2022, down 4.1%
Energy Consumption Interpretation
Germany's energy transition resembles a frugal houseguest carefully turning down the thermostats and unplugging gadgets, showing progress with a sigh of relief as overall demand falls, yet still wrestling with the fact that moving its massive transport and heating systems away from oil and gas is like trying to parallel park a tank.
Energy Infrastructure
- Germany's high-voltage grid is 34,000 km long
- 1.1 million km distribution grid for electricity in 2023
- Gas transmission grid 500,000 km total
- 5 new LNG terminals operational or under construction by 2023
- Battery storage capacity reached 12 GW by end-2023
- Pumped hydro storage 40 TWh capacity
- Interconnectors to neighbors: 20 GW capacity
- Digitalization: 70% smart meters installed in large consumers by 2023
- Offshore grid connections: 8 GW connected
- HVDC lines: 3 operational, 2 under construction for North-South transfer
- Transformer capacity expanded by 5 GW in 2023
- EV charging points: 100,000 public by end-2023
- Wind curtailment 5.8 TWh in 2023, down 20%
- Grid fees averaged 8.1 ct/kWh in 2023
- Hydrogen pipelines planned 9,000 km by 2032
- Transmission grid investment €3 billion 2022
- Distribution grid digitalization €1.5 bn 2022
- First FSRU LNG terminal Brunsbüttel operational 2022
Energy Infrastructure Interpretation
Germany is frantically building a spaghetti junction of pipelines, power lines, and battery packs, all in a desperate race to keep its industrial heart beating while trying to ditch Russian gas and fossil fuels simultaneously.
Energy Policy and Emissions
- Germany's EEG 2023 law sets 80% RES target by 2030
- Coal phase-out act (KVBG) targets 2030 possible end
- CO2 emissions from power sector 158 Mt in 2023, down 45% from 2013
- EU ETS price averaged €83/t CO2 in 2023
- National emissions reduction target: 65% by 2030 vs 1990
- Gas price brake saved consumers €25 billion in 2023
- RES Act subsidies totaled €25.6 billion in 2023
- Building energy law (GEG) mandates heat pump share 65% in new heating from 2024
- Hydrogen strategy invests €9 billion by 2030
- Grid expansion: 12 GW new lines approved 2023
- Carbon capture funding pilot €375 million
- Total GHG emissions 673 Mt CO2eq in 2023, -38% from 1990
- Power sector emissions intensity 284 gCO2/kWh in 2023
- CO2 price national €30/t in 2022
- GHG emissions total 746 Mt 2022
- Power sector CO2 down 12% 2022
- EEG 2.0 reform passed 2022 for faster expansion
- Gas levy introduced Oct 2022, €1.50/100kWh
- LNG expansion act (LNG-Gesetz) 2022
- Grid expansion acceleration law 2022
- Emissions trading for heat/buildings started 2023 but planned 2022
- 1.6 GW electrolyzer capacity target by 2030 funded 2022
Energy Policy and Emissions Interpretation
Germany's energy transition is a high-stakes juggling act, simultaneously phasing out coal, propping up consumers with one hand while pouring billions into renewables and hydrogen with the other, all while trying to keep the national climate target from crashing to the floor.
Fossil Fuel Production
- Lignite production volume was 123.5 million tons in 2023, down 18% from 2022
- Hard coal production for power fell to 25.4 million tons in 2023
- Lignite power plants operated at 39% load factor in 2023
- RWE closed 4 lignite units totaling 2.1 GW in 2023
- LEAG lignite output down 22% to 66 million tons in 2023
- Hard coal imports dropped 40% to 15.2 million tons in 2023
- Coal phase-out law mandates end of coal by 2038, with possible acceleration to 2030
- 10.7 GW coal capacity decommissioned since 2020 by 2023
- Natural gas imports via LNG terminals reached 12.5 bcm in 2023
- Gas consumption for power generation down 28% to 40.1 TWh electricity in 2023
- Norway supplied 33% of Germany's gas imports in 2023
- Total primary energy consumption from coal was 15.2% in 2023
- Lignite mining emissions totaled 92 Mt CO2 in 2023
- Hard coal phase-out advanced with closure of 4.5 GW capacity planned by 2024
- Gas storage levels peaked at 97% in late 2023
- Lignite generation 84.0 TWh in 2022, 17.2%
- Hard coal 81.3 TWh in 2022, 16.6%
- Gas electricity 54.7 TWh in 2022, 11.2%
- Coal capacity 43 GW end-2022
- Lignite mine output 150 Mt in 2022
- Gas imports 95 bcm in 2022, down from 110 bcm
- Russia gas share fell to 55% in first half 2022
- Coal emissions 220 Mt CO2 from power in 2022
- Neurath lignite plant largest emitter 18 Mt CO2 2022
- Hard coal phase-out: 15 GW closed by 2030 target
- Gas storage filled to 24% summer min 2022
Fossil Fuel Production Interpretation
While Germany's energy transition is awkwardly shuffling coal off the stage, with production and imports plummeting as plants sputter at low capacity, it's nervously eyeing the gas supply lines and hoping its storage tanks can handle an encore.
Nuclear Energy
- Germany's three remaining nuclear plants shut down on April 15, 2023, ending 62 TWh annual output
- Nuclear share dropped to 0.2% of electricity in 2023 from 6% in 2022
- Isar 2, Emsland, and Neckarwestheim 2 were last reactors, capacities 1.4 GW, 1.4 GW, 1.3 GW
- Lifetime extension of 3 months for two plants in 2022 added 4 TWh
- Nuclear waste storage debates continue, with 19,000 tons spent fuel in Germany
- Decommissioning costs estimated at €38 billion for German nuclear plants
- No new nuclear builds since 1970s, policy shift to Energiewende in 2011
- Nuclear R&D funding cut to €200 million annually post-phaseout
- Bavaria pushed for extension but overruled nationally
- Total nuclear electricity generated historically: over 1,700 TWh since 1960s
- Post-shutdown, electricity prices rose 5-10% short-term
- Replacement by gas and coal added 10 Mt CO2 emissions
- Nuclear generated 31.5 TWh in 2022, 6.4%
- Nuclear capacity 4.2 GW operating end-2022 before shutdown
- Lifetime extensions approved for Isar 2 and Neckarwestheim 2 by 3 months
- Emsland extended 2 months in 2022
- Nuclear fuel reserves for 2 years post-shutdown planned
- Decommissioning started immediately after shutdown 2023
- Public opinion 55% against phase-out in 2022 polls
- Nuclear R&D shifted to fusion, €300m funding 2022
Nuclear Energy Interpretation
In a masterstroke of energy policy, Germany pulled the plug on its last three nuclear plants in 2023, trading 62 TWh of low-carbon electricity for a sudden reliance on fossil fuels, a significant short-term rise in emissions and power prices, and the enduring headache of managing 19,000 tons of waste and €38 billion in decommissioning costs.
Renewable Energy Production
- Solar PV installed capacity grew by 14.6 GW in 2023 to 81.8 GW total
- Onshore wind added 4.2 GW capacity in 2023, reaching 59.3 GW
- Offshore wind added 1.5 GW in 2023, total 8.0 GW
- New biomass capacity was 0.3 GW in 2023, total around 9.5 GW
- Run-of-river hydro capacity stable at 3.9 GW, pumped storage 7.1 GW in 2023
- Solar PV generation per capita was 729 kWh in 2023
- Wind power capacity factor for onshore was 24.5% in 2023
- Offshore wind capacity factor reached 45.2% in 2023
- RES share in electricity consumption was 55.6% in 2023
- EEG surcharge fell to 0.68 ct/kWh in 2023
- Over 3 million rooftop solar systems installed by end-2023
- Ground-mounted PV added 8.1 GW in 2023
- Wind turbine repowering added 1.2 GW onshore in 2023
- In 2022, solar PV generated 50.8 TWh, up 34% from 2021
- Onshore wind produced 125.5 TWh in 2022
- Offshore wind 25.5 TWh in 2022
- Biomass electricity 44.2 TWh in 2022
- Hydro 22.1 TWh in 2022
- Renewables total 241.4 TWh or 46% in 2022
- Solar capacity 67.6 GW end-2022
- Wind total capacity 65 GW end-2022
- RES curtailment 6.3 TWh costing €1.2 billion in 2022
- Rooftop solar 1.1 million systems added in 2022
- Utility-scale PV 7 GW added 2022
- Onshore wind 3.2 GW new installs 2022
- Offshore tenders awarded 1.6 GW in 2022 auction
- Biogas plants 9,000 operational end-2022
Renewable Energy Production Interpretation
Germany is now sprinting towards its renewable future with solar panels blazing a trail, proving that while the wind may be more intermittent, the sun rarely takes a coffee break, and together they're shouldering the grid with over half our power, though at the hefty price of occasionally paying more to turn them off than to turn them on.
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