Regional Market Outlook on Electricity

The supply security is high in Germany due to the strong electricity generation base in the country.The supply demand situation in Germany is well balanced, and Germany is a net exporter of power

Germany Electricity Supply-Demand Trend

  • The electricity supply demand scenario in Germany is well balanced and Germany is a net exporter of power
  • The demand for power in Germany is easily met through the domestic generation, and the power supply has been gradually rising through out the years, mainly due to progress in the renewable energy generation
  • The supply is expected to grow by a CAGR of 0.44 percent in the coming couple of years with rise in generation through new and small scale non conventional energy sources, while the demand is likely to decline by a rate 2.4  percent CAGR during the same period, due to the growth in energy efficiency measures

Germany Electricity Fuel Mix Overview

The fuel mix is dominated by coal generation, as it is the base load generator, even though renewable energy having highest share in capacity

The electricity generation is dominated by coal generation, although renewables play a significant role in electricity generation, with about 30 percent of the total generation

Germany Electricity Generation Trend

  • The electricity generation  in Germany is dominated by coal based generation, even though the share is falling gradually, coal accounted to nearly 41 percent of the total generation
  • The renewable energy generation was the next prominent fuel in German fuel mix, with a share of 30 percent of the total, and followed by nuclear energy and natural as with generation shares of 13 percent and 11 percent respectively
  • The emission policies in the EU, advancement in technology, and the decline in raw material costs, have boosted renewable energy installation in Germany, and it grew by nearly 5 GW from 2011 to 2017, a growth of 10 percent during the period

Germany Electricity Trade Flow Analysis

  • The German grid is interconnected with the Central European and other neighboring countries , which helps in transporting excess power across the grid, and meeting demands during scarcity.
  • The imports declined by 21 percent and settled at about  25.6 TWh in 2016, when compared to 2015, and during the same period, the exports dropped to 74.5 TWh, a dip of 5 percent Y-o-Y
  • The unplanned electricity loop flows through the least resistance path creates deficit in certain entry points, and surplus flow in others, creating network congestions
  • The loop flows had created a deficit of 14.45 TWh of energy trade to Austria in 2015, while it reduced to 11.26 TWh in 2016, mainly due to decline in overall trade in 2016

Germany Renewable Energy market Analysis

The all round year generation capability helps bioenergy to utilize its capacity tot the fullest, and would be a preferred model while considering energy security for the consumer

Share of Final Energy Generation by Type-2016 (TWh)

  • The renewable energy generation in Germany is dominated wind energy, with nearly 50 GW of combined installed capacity, wind energy has nearly 50 percent of the total energy share
  • The interesting generation pattern is observed with the next dominant RE type, the biomass sector, as the energy generation in 2016 was nearly 26 percent of the total with just nearly 8 GW of combined installed capacity
  • The capability of power generation all round the season, when compared to solar and wind energy, is the fact which drives the power generation share of bio energy to the second dominant generator
  • The solar PV, owing to market maturity and cost reduction, has nearly 40GW of capacity,  but the generation share was just 22 percent of the total in 2016, due to the seasonality dependence