German energy transition not fast enough to reach renewables targets – report
Clean Energy Wire
The expansion of wind and solar energy in Germany is not happening at the speed required to reach the country’s 2030 renewable targets, according to a report on the current state of the energy transition by the German Institute for Economic Research (DIW). The rollout of heat pumps, electric mobility, and battery storage systems also falls short of government targets.
“For the energy transition, we are currently seeing progress in many areas, but all in all, not at the pace desirable for climate protection and energy sovereignty,” author of the report Wolf-Peter Schill said.
The DIW said that the prospects for the energy transition are better now than ever before, because technological progress, lower costs, and easier approval processes constitute strong incentives. However, author Schill is concerned about the “mixed signals” from the current government about its support for the energy transition.
“The government should use the favourable framework conditions, and strongly advance the expansion of renewable energy as well as the electrification of other sectors, instead of pushing the brakes,” Schill argued.
Germany reached 117 gigawatts (GW) of PV installations at the end of 2025, just over half of the 215 GW target for 2030, the report said. Onshore wind reached about 60 percent of the total capacity required by 2030 (68.2 out of 115 GW). The authors said that replacing fossil fuels with electricity still remains a major obstacle, especially in the laggard heating and transport sectors.
DIW noted improvements in the flexibility of the electricity supply, as periods with negative wholesale electricity prices notably decreased in the second half of 2025, which indicates a stronger synchronisation of supply and demand. The report also pointed to the rapid expansion of large-scale battery storage systems, which can further contribute to more flexibility.