The record amount of electricity generated from wind and solar power in 2025 met a system that makes surpluses expensive and fails to prevent bottlenecks. At the same time, costs associated with the Renewable Energy Sources Act (EEG) are rising, as are the costs of electricity imports, risks associated with periods of low wind and solar output, and grid expansion, because grids and reserve capacities are not keeping pace. Thus, electricity customers and taxpayers are paying for balancing and maintaining capacity, even though the expansion of renewable energy continues to set new records.
Record Electricity Output and System Reality – Periods of Low Wind and Solar Power Remain the Bottleneck
According to the Federal Statistical Office, in the third quarter of 2025, for the first time almost two-thirds of Germany’s electricity came from wind, solar, biogas, and run-of-river hydropower; overall, 62.7 percent of the energy generated in Germany came from renewable sources. However, it is not the annual percentage that determines stability, but rather the output during critical hours. During periods of calm winds and weak solar radiation, there is a lack of reliably feed-in electricity, and this is precisely when periods of low wind and solar power become critically severe. The record yield on good days does little to change this.
Since 2020, the installed capacity of onshore wind power has increased by approximately 14 gigawatts, or about a quarter. However, in 2025, the plants did not generate more electricity than in 2020 because weather and site quality limit the yield. According to the aforementioned figures, photovoltaics also shows signs of saturation: Doubling the capacity resulted in only about 50 percent more generation over five years. While the total amount of electricity produced increases, the question of system sustainability remains unresolved.
Renewable Energy Sources Act (EEG) Costs and Negative Prices: Risk Shifts to the Public
When large amounts of solar and wind power are fed into the grid simultaneously, wholesale electricity prices frequently fall. This leads to losses as soon as grid operators are required to purchase electricity at fixed EEG feed-in tariffs, even though the market offers little compensation for the electricity. For 2025, another 18 billion euros in compensation payments to transmission system operators are anticipated, meaning that EEG costs remain a key driver of electricity prices. To get costs under control, the unconditional EEG subsidy for renewable energy generation must be ended. The subsidy surcharge acts as a safety net for producers, but it burdens households and businesses.
At the same time, infrastructure costs are rising because generation and consumption are geographically separated. Furthermore, the report estimates the current costs of grid expansion at around €500 billion, which are passed on to everyone through grid fees. Extending the grid over hundreds of kilometers ties up capital and time, even though bottlenecks continue to occur. Therefore, the demand for regional solutions is gaining traction because it makes better use of existing grids and reduces planning burdens. Here, too, the record amount of electricity remains expensive without a suitable grid framework.
Electricity Imports Despite Expansion: From Export Earnings to Dependence
Germany is increasingly covering supply gaps with electricity from abroad, despite massive investments in domestic production. Nevertheless, figures for 2025 show around 77 terawatt-hours imported, mostly nuclear power, resulting in a structural increase in electricity imports. These energy imports cost foreign suppliers approximately €2.4 billion annually. The situation was different in 2010: Back then, 21.4 gigawatts of nuclear power and 79.4 gigawatts of fossil fuel power plants were in operation, and Germany, as a net exporter, earned over €2.5 billion annually until the last nuclear power plants were decommissioned.
In response to periods of low wind and solar power generation, hydrogen-capable gas-fired power plants are coming into focus because they are intended to provide reserve capacity. At the same time, according to this view, a viable business model is lacking, even though policymakers are discussing capacity payments as a solution: Initially, 20 plants were planned, later 40 were under consideration, and ultimately the EU approved twelve power plants. The costs of maintaining capacity continue year-round, and thus EEG (Renewable Energy Sources Act) costs and grid fees indirectly increase further when the capacity mechanism impacts electricity bills.
Grid Expansion, Technological Openness, and Looking to China
China is often used as a point of comparison, but its system mix remains different. According to reports, around 20 percent of China’s electricity comes from wind and solar, while coal (60 percent), hydropower (15 percent), and nuclear power (5 percent) stabilize the base load. This mitigates the impact of periods of low wind and solar output because dispatchable capacity can react quickly. For Germany, however, electricity imports and grid expansion become more critical when fluctuating generation grows without sufficient storage and grid capacity. A record amount of electricity from renewables then appears as a statistical success, but not as a guarantee of security of supply.