High prices reduced German energy consumption despite post-pandemic GDP recovery

Germany’s overall energy consumption slightly increased in 2021, reaching 12,265 petajoules (PJ), energy data service AG Energiebilanzen (AGEB) says in its 2021 report. But although consumption climbed 3.1 percent compared to the previous year, it still was noticeably lower than before the coronavirus pandemic and a large part of last year’s increase is attributable to the much colder weather in winter, spring and autumn, AGEB said. Adjusted for the weather effect, energy consumption would have only increased by 0.6 percent, it added. While overall economic output, the gross domestic product (GDP), grew by 2.7 percent and thus triggered greater energy use, high prices caused a noticeable reduction in consumption last year and slowed down the growth-related rise. 

The import prices for crude oil, natural gas and hard coal rose somewhere between 67 to 139 percent. At the same time, prices for CO₂ emission certificates more than doubled compared to the previous year and reached historic highs by the end of 2021.