- Germany may face electricity shortfalls as renewables alone may not meet future demand, prompting calls to prioritise grid upgrades over expansion.
- Economy Minister Katarina Reich announced plans to build new gas power plants and invest €600 billion in grid upgrades as Germany phases out coal by 2038.
Germany may face significant electricity shortages in the coming years as its current renewable energy expansion falls short of national demand.
The Ministry of Economics and leading industrial stakeholders have raised concerns over the feasibility of meeting energy needs solely through wind and solar power. Economy Minister Katarina Reich said Germany must shift its focus from simply adding more renewables to urgently modernising and expanding its electricity grid.
Reich estimated that upgrading the national grid by 2045 could cost as much as €600 billion. She acknowledged the high price, calling it “very expensive,” but stressed that the investment is essential to ensure energy reliability.
Germany’s energy dilemma is further complicated by its plan to phase out coal-fired power by 2038. With renewables unable to fully replace coal, Reich said the country would need to rely on natural gas plants during the transition.
To support this strategy, the government plans to issue a tender to construct new gas-fired power plants later this year. Reich said the goal is to secure a stable and flexible power supply as Germany navigates its energy shift.