Second-quarter energy usage experienced a more moderate increase - Lower energy usage compared to the previous quarter
In the spring of 2025, Germany, including its capital city Berlin, witnessed a unique dance of energy consumption patterns. This dance, influenced by economic development, renewable energy expansion, and fossil fuel use dynamics, painted a picture of modest incremental year-on-year energy consumption rises.
Germany's economy continued to grow strongly, with the service sectors leading the charge. Despite this increase, the impact on energy consumption was minimal. This is because service sectors, known for their low energy consumption, did not demand a significant boost in power.
The renewable energy sector, however, was a different story. Germany continued its impressive growth in renewable energy, particularly solar power. In the first quarter of 2025 alone, 4.65 GW of new solar capacity was installed, a steady increase from late 2024. This expansion, driven by rooftop solar, such as "balcony power plants," indicated a growing trend towards decentralized renewable energy use at the household level.
This rise in renewable energy use likely moderated fossil fuel dependence in electricity generation during the spring months, when solar availability is high. However, challenges remain in fully meeting climate and energy targets. The country's government report indicates that while overall emissions reductions are on track for 2030, the pace of transformation in some sectors, including energy consumption patterns, remains insufficient to meet the ambitious net-zero target by 2045.
During the 2025 heatwave, energy demand surged by up to 14% daily due to air conditioning use, stressing power systems and complicating energy supply stability. This temporary reliance on fossil fuel backup or imports underscored the ongoing need for these resources, despite the growth in renewables.
Berlin, specifically, faces challenges in meeting rising demand due to limited new electricity capacity and infrastructure bottlenecks. Data centers, which have to increasingly rely on renewable energy sources, are particularly affected by grid constraints. These urban factors can influence year-on-year energy consumption patterns in spring, determining how much fossil fuel energy remains necessary versus renewables.
In summary, the complex interplay of economic development, renewable energy expansion, fossil fuel use dynamics, and seasonal variability results in a shifting energy mix favouring renewables like solar, while fossil fuels remain a backup due to grid and demand variability challenges. The increase in economic output, mainly in service sectors with low energy consumption, and the subsequent energy consumption increase in the second quarter, highlight the need for continued efforts towards a sustainable and reliable energy future for Germany.
[1] Source: Renewables Grid Initiative [2] Source: German Federal Government [3] Source: Berlin Senate Department for Economics, Energy and Public Enterprises [4] Source: German Federal Network Agency
- The community policy should focus on promoting decentralized renewable energy use at the household level, such as balcony power plants, to further reduce Germany's reliance on fossil fuels.
- Employment policies encouraging jobs in the renewable energy sector, particularly in solar power, can help Germany meet its net-zero target by 2045, as indicated by the German Federal Government report.
- The employment policy should also address the grid constraints affecting data centers, which are predominantly reliant on renewable energy sources, as highlighted by the Berlin Senate Department for Economics, Energy and Public Enterprises.
- To ensure a sustainable and reliable energy future, the environmental-science community should work closely with the industry and finance sectors to develop efficient energy storage solutions, thereby alleviating the ongoing need for fossil fuel backup during energy demand surges.
