Particle.news
Download on the App Store

Germany’s Power Shift Quickens: Solar Overtakes Coal as Grid Build Speeds Up and Bills Poised to Ease

Negative-price spikes are prompting rapid grid expansion alongside targeted subsidies to steady energy costs.

Overview

  • Fraunhofer data show renewables supplied 55.9% of public electricity in 2025, with solar generating about 87 TWh and overtaking coal as wind remained the top source but fell short of expansion targets.
  • The federal regulator approved roughly 2,000 kilometers of new high‑voltage lines in 2025 and completed permitting for the A‑Nord, Ultranet, SuedLink and SuedOstLink DC corridors to move northern wind power south.
  • Distribution operator Bayernwerk plans about 40,000 kilometers of medium‑ and low‑voltage lines by 2030 plus 1,000 kilometers of high voltage, upgrades at around 300 substations and reports 77 GW in battery connection requests.
  • Wholesale prices turned negative for a record ≈525 hours in 2025, enabling savings for customers on dynamic tariffs but increasing taxpayer costs due to guaranteed feed‑in payments to renewable generators.
  • From January 1 the government funds lower network charges that could cut household bills by about 15% and launches a time‑limited industrial power price near 5 cents/kWh, as RWE’s CEO forecasts lower electricity and gas prices in 2026 helped by these measures and growing LNG supply.