The German government is facing growing concerns regarding the rapid expansion of renewable energy sources and the capacity of the existing power grid to support it. Federal Minister for Economic Affairs, Katherina Reiche (CDU), has indicated a need to recalibrate the pace of solar and wind power development to align more closely with the expansion of the electricity transmission network.
Reiche argues that this coordinated approach will lead to cost savings for both businesses and consumers. Germany’s energy consumption reached 464 terawatt-hours (TWh) last year, with projections suggesting a potential increase to 670 TWh within five years and a possible doubling to 1,000 TWh by 2035. Addressing the necessary grid upgrades to accommodate this demand is estimated to require investments of approximately €600 billion by 2045.
Within the government, doubts are emerging as to the feasibility of financing such a massive undertaking. To ensure energy security during periods of low wind and solar power generation – often lasting for extended weeks – Reiche has signaled the potential commissioning of natural gas-fired power plants, with initial tenders anticipated later this year.
This perspective is echoed by industry representatives. Holger Lösch, Deputy Managing Director of the BDI (Federation of German Industries), emphasized the need to align current, ambitious plans for the energy transition with realistic demand and cost developments.
Concerns are also being voiced regarding the potential for grid overload as Germany transitions to electric vehicles. Oliver Zipse, CEO of BMW, warned that the current grid infrastructure may be insufficient to support the EU-mandated shift to all-electric vehicle production by 2035. He expressed skepticism about the possibility of reliably charging every new vehicle with electricity in Germany within a decade, suggesting that adapting the grid to accommodate a 100% electric vehicle market could require 30 to 40 years and represent a significant financial burden.