Germany Renewable Energy Market Report and Forecast 2025-2034

Germany Renewable Energy Market Size

The Germany renewable energy market is expected to grow at a CAGR of 4.70% between 2025 and 2034.

Germany Renewable Energy Market Outlook

• Germany's Climate Law outlines a comprehensive framework to achieve net-zero emissions by 2045. To realise the ambitious Energiewende by 2030, Germany aims for 80% of its electricity supply to be sourced from renewable energy (increasing to 100% by 2035), with a complete phase-out of coal.

• Significant legislative reforms in renewable energy planning and siting are supporting targets of 100-110 GW of onshore wind, 30 GW of offshore wind, and 200 GW of solar capacity by 2030, complemented by investments in 10 GW of hydrogen infrastructure.

• Additionally, through the Energy Efficiency Act, Germany is actively working to reduce energy consumption by approximately 500 TWh by 2030, representing about one-fifth of its energy consumption in 2022.

Germany Renewable Energy Market Growth

The Germany renewable energy market value is anticipated to increase significantly over the forecast period due to factors including increasing parity in the prices of alternative energy to conventional energy,increasing awareness and climate changes caused by fossil fuels and conventional energy resources such as oil, coal, and natural gas, growing focus on sustainable development, and encouraging government policies and initiatives to use renewable energy sources to fulfill the country's growing power demand.

The growth of wind power is significantly influenced by government policies and objectives. In the coming years, it is anticipated that the country would place more emphasis on wind power and other forms of renewable energy as concerns over climate change and its mitigating effects grow.

The German government recently announced that it will provide subsidies to lower imports through laws such as the Renewable Energy Sources Act (EEG), which describes support for the production of electricity from renewable sources and provides a feed-in tariff structure for plants. With limited oil and gas supplies to meet its energy needs, Germany is attempting to become less reliant on imports. The country is making an effort to switch from fossil fuels to renewable energy, thus increasing the renewable energy demand. Germany approved laws in October 2022 mandating the phase-out of coal-based electricity generation by 2038. Renewable energy sources, mostly wind and solar energy, are thus, anticipated to bridge the gap between the supply and demand for energy.

In addition, technical advancements are driving down the cost of renewable energy, and rising battery storage system competitiveness is supporting the expansion of the renewable energy sector. Furthermore, finance for renewable energy sources is rising as a result of growing concerns about global climate change and environmental, social, and governance (ESG) challenges.

Industry Outlook

As per the Germany renewable energy industry analysis, Germany achieved a significant milestone in 2023 by generating over half of its electricity from renewable sources, reaching nearly 52% of gross electricity consumption for the year. This represents a notable increase of five percentage points from the previous year's share of 46%. The growth in renewable energy was driven by a combination of reduced overall electricity consumption and a six percent increase in absolute renewables production, which reached a record high of 267 terawatt-hours (TWh).

Germany has set ambitious targets for its energy transition (Energiewende), aiming for an 80% share of renewable electricity by 2030 and a largely decarbonized power supply by 2035. To achieve these goals, the country is phasing out nuclear power and reducing its reliance on coal, with a focus on utilizing remaining gas plants primarily for grid backup.

Despite progress in renewable energy adoption, Germany faces challenges in meeting its climate targets. The country experienced a 2% reduction in greenhouse gas emissions in 2022, falling short of the necessary reductions to achieve the 2030 target of a 55% reduction compared to 1990 levels. The recent energy crisis, exacerbated by Russia's conflict with Ukraine, led to increased reliance on coal electricity, thus affecting the renewable energy industry in Germany.

To accelerate emissions reductions and achieve climate goals, Germany will need to triple its annual reduction rate and invest in smart energy infrastructure and energy efficiency measures. The country's longstanding commitment to renewable energy and environmental technologies underscores its leadership in the global transition toward sustainable energy solutions.

Recent Developments

The German automaker Mercedes-Benz announced plans to build a 120 MW wind farm near its test track in Papenburg, northern Germany, in May 2023. It gave the German energy developer Umweltgerechte Kraftanlagen (UKA) a long-term contract. With 20 turbines to power the wind farm, the luxury carmaker hopes to supply 20% of the yearly electricity needed for its facilities in Germany.

With the goal of accelerating the production, storage, and transportation of a potentially game-changing renewable energy source, Germany is planning to invest billions in cutting-edge hydrogen projects which will increase ethe Germany renewable energy market revenue. A total of €4.6 billion ($4.9 billion) has been allocated for 23 projects by the German federal government and a number of state governments. The main focus of the projects is large-scale green hydrogen production, but they also include creative and safe storage options and up to 2,000 kilometers of transportation infrastructure.

Germany Renewable Energy Industry Segmentation

Germany Renewable Energy Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Solar

• Wind

• Hydro

• Biomass

• Geothermal

Market Breakup by Region

• North Rhine-Westphalia

• Bavaria

• Baden-Württemberg

Germany Renewable Energy Market Share by Type

The transition to renewable energy has been supported by legislative reforms and significant investments in offshore wind, solar photovoltaics (PV), and energy storage projects. Major targets include reaching 100-110 gigawatts (GW) of onshore wind capacity, 30 GW of offshore wind capacity, and 200 GW of solar capacity by 2030. Additionally, Germany aims to deploy 10 GW of hydrogen infrastructure to support its energy transition which will increase the demand of Germany renewable energy market.

Increasing Demand for Sustainable Energy Solutions and Technological Advancements Strengthening the Germany Renewable Energy Market

• Growing consumer and governmental push towards sustainable energy solutions driven by climate change concerns are propelling the Germany renewable energy demand growth.

• Technological advancements in wind, solar, and biomass energy systems for increased efficiency and output.

• Expansion of energy storage solutions, such as batteries and hydrogen storage, enhancing renewable energy reliability.

• Strong policy support and subsidies from the German government promoting renewable energy investments is increasing the Germany renewable energy industry revenue.

• Established market presence of key players with robust capabilities in renewable energy projects and infrastructure.

High Costs and Infrastructure Limitations May Challenge the Growth of Germany Renewable Energy Market

• High initial investment and operational costs for renewable energy installations and infrastructure will hinder the renewable energy demand forecast in Germany.

• Limited grid integration capabilities in rural and remote areas, hindering renewable energy distribution.

• Dependence on advanced technology and skilled workforce for maintaining and upgrading renewable energy systems.

• Challenges in balancing energy supply and demand due to the intermittent nature of renewable energy sources.

• Customer expectations for affordable and consistently available renewable energy.

• Economic factors influencing the competitiveness of renewable energy against traditional energy sources.

Investment in Offshore Wind Farms and Partnerships with Research Institutions are the Key Germany Renewable Energy Market Trends

• Development of advanced photovoltaic cells and wind turbine technologies for higher energy yield.

• As per the Germany renewable energy market dynamics and trends, integration of smart grid technologies for efficient energy distribution and management will support the market growth.

• Deployment of blockchain technology for energy trading and transparency in the renewable energy supply chain.

• Innovation in bioenergy and waste-to-energy technologies to diversify renewable energy sources.

• Investment in offshore wind farms and large-scale solar parks for significant renewable energy generation.

• Growth of community energy projects and decentralized energy systems.

• Partnerships with research institutions and technology companies to develop next-generation renewable energy solutions are creating several Germany renewable energy market opportunities.

Energy Sources Driving the Energy Transition in Germany

Wind and solar energy are the leading forms of renewable energy, with biomass and hydropower also playing crucial roles in the country’s energy system.

Solar Energy: Photovoltaic (PV) installations directly convert sunlight into electricity through solar panels. As of the end of 2018, there were 1.6 million PV installations, producing around 45 gigawatts of electricity. This made PV the second-largest source of renewable electricity, following onshore wind energy, which had an installed capacity of over 52 gigawatts. In the heating sector, solar collectors harness solar energy to generate heat for domestic hot water and industrial processes.

Wind Energy: Currently, wind energy is the primary driver of the growth of the Germany renewable energy market. In 2018, onshore wind installations accounted for 52.5 gigawatts, while offshore installations added 6.4 gigawatts. Together, these installations generated approximately 110 terawatt hours (TWh) of electricity—90.5 TWh from onshore and 19.5 TWh from offshore. The Federal Government's plans aim to increase offshore wind capacity to 15 GW by 2030.

Biomass: Biomass, in solid, liquid, and gaseous forms, is utilized for electricity and heat generation, as well as for producing biofuels. Biomass contributes nearly 23% to renewable electricity generation, 86% to renewable energy in total heat and cooling consumption, and 88% to renewables in final energy consumption in the transport sector.

Competitive Landscape

Key players are increasingly spending on research and development to help the renewable energy industry grow even more.

• JinkoSolar Holding Co., Ltd.

• First Solar, Inc. 

• Enel S.p.A.

• Ørsted A/S

• WKN GmbH 

• Suzlon Energy Ltd.

• Vestas Wind Systems A/S

• ENERCON Global GmbH 

• EnBW Energie Baden-Württemberg AG

• Others

Key Highlights of the Report

Germany Renewable Energy Market Report Snapshots

Germany Renewable Energy Market Size

Germany Renewable Energy Market Growth

Germany Renewable Energy Companies