Germany's energy use rises 2.3% in first half of 2025 - Reuters

Germany's energy use rises 2.3% in first half of 2025 - Reuters

Germany's energy consumption has surged by 2.3% in the first half of 2025, according to Reuters. This increase, which is among the highest recorded in recent years, reflects a combination of factors including economic recovery post-pandemic, increased industrial production, and higher demand for heating and cooling.

The rise in energy use comes amidst Germany's ongoing efforts to reduce energy costs and transition to renewable energy sources. In July 2025, the German government announced plans to cut energy costs by 42 billion euros ($48.69 billion) between 2026 and 2029. This initiative aims to alleviate the financial burden on consumers and businesses, which have been struggling with high electricity prices.

According to a draft of the 2026 federal budget, 26 billion euros will be allocated as subsidies for electricity transmission network costs. Additionally, 3 billion euros will provide relief for energy-intensive companies in 2026, while 6.5 billion euros will subsidize grid fees. The draft budget also considers the introduction of an industrial electricity price based on EU state aid regulations [1].

Germany's electricity prices remain among the highest globally. In the first quarter of 2025, the average price was 38 euro cents per kilowatt-hour, ranking fifth worldwide. The new government of Chancellor Friedrich Merz has pledged to cut electricity tax for selected sectors, further contributing to the reduction in energy costs.

The European Union has recently announced new state aid rules, allowing heavy industries to receive temporary electricity price relief. This move is in response to criticism from companies over high energy costs and burdensome green regulations.

Despite the increase in energy use, Germany continues to prioritize its energy transition and sustainability goals. The country aims to reduce its greenhouse gas emissions by 65% by 2030 compared to 1990 levels. The recent energy cost reduction plans and ongoing efforts to support renewable energy sources are part of Germany's broader strategy to achieve these targets.

References:
[1] https://www.reuters.com/sustainability/germany-plans-cut-energy-costs-by-42-billion-euros-draft-budget-shows-2025-07-28/