Wind power, solar energy and other RE sources accounted for 77 billion kilowatt-hours (kWh) as compared to 67 kWh in Q1 of 2019
Germany has reached an important milestone by generating more than 50% of its electricity using renewable sources in the first quarter of 2020. This increase in renewable energy capacity was driven by a steep rise in wind and solar energy production in February and March, 2020. Also, the sudden drop in energy consumption across the country due to the COVID-19 lockdown has contributed to this growth in RE (renewable energy). RE generation in Germany in 2019 was also on a high scale. All these factors have put Germany on track in terms of adhering to its 2020 clean energy targets. However, over RE expansion has slowed down to some extent. Germany has set a target to generate 65% of its energy from renewable energy sources by 2030. The current numbers from quarter one (Q1) of 2020 has shown that the country is really close to achieving these numbers.
According to BDEW, German association of energy and water industries, and the Centre for Solar Energy and Hydrogen Research Baden- Württemberg (ZSW) have stated that the current figure of 52% of Germany’s energy consumptions from RE sources in Q1 2020 is an increase of 7% from 44.4% in the same period last year. Wind power, solar energy and other RE sources accounted for 77 billion kilowatt-hours (kWh) as compared to 67 kWh in Q1 of 2019. This quantity was driven by a record amount of wind energy production in the month of February, 2020. However, due to the exceptional situation (coronavirus pandemic) it may be too early to predict a future trend from these figures.
Currently, Germany is facing issues in investments in the RE sector, despite its healthy run in RE based generation this year. These investment bottlenecks, if not resolved, might be a deterrent in achieving the country’s 65% RE capacity share in the overall energy scenario. In terms of gross electricity production, RE accounted for 49% of gross electricity production in the country in Q1 2020, inclusive of electricity exported from Germany.
Apart from dwindling investments, the RE industry in Germany faces multiple obstacles. Onshore wind farm expansion has slowed down drastically. Government subsidies in the solar energy market are reaching a threshold in a few months. The economic slump makes matters worse and affects investor sentiment.
On the plus side, the economic downturn orchestrated by the coronavirus pandemic has decreased carbon emissions in Germany. The country had set a target of decreasing its carbon emissions by 40% below its 1990 levels. The incidental and unexpected decrease in emissions seems to have put the country on track to achieving this target.
However, due to the COVID-19 outbreak, talks to implement measures to break the RE gridlock in the country have been deferred. The minimum gap between onshore wind turbines and a cap on solar energy were to be the subject of discussion between Angela Merkel and the heads of states. However, all prior agendas were scrapped and measures to contain the outbreak are at the forefront of all talks in the European nation. However, Merkel observed that there is still a lot to be decided in terms of energy transition matters in the country. The solar energy support cap will possibly obstruct new investments into the market, making the situation graver than usual.
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