Renewable energy's share on German power grids reaches 55% in 2023

FRANKFURT, Jan 3 (Reuters) — Renewable energy accounted for 55% of electricity transported on German networks in 2023, taking the country closer to its climate targets, the energy regulator said on Wednesday.

Germany wants green power to account for 80% of its energy mix by 2030. It has ditched nuclear power and aims to abandon most of its coal generation and use remaining gas plants mostly for grid back-up. Within renewables, offshore wind contributed a 31.1% share, solar accounted for 12.1% and biomass 8.4%, while the remaining 3.4% came from hydropower and other renewables, the Bundesnetzagentur said in a statement.

The total 55% share was 6.6% higher than the contribution recorded in 2022, partly due to capacity expansion as well as weather factors.

Power grids, which are consumer-funded and supervised by the agency, must facilitate the ongoing transition from central fossil fuels-based generation to millions of decentralised low-carbon production units tapping mainly into wind and sunshine.

The total load on public power networks in 2023 fell by 5.3% to 456.8 terawatt hours (TWh) last year, as power production was adjusted to weaker demand and as conventional gas and coal power sources gave priority to weather-derived green power.

German energy demand is still suffering from a contraction in economic activity in the aftermath of Russia’s invasion of Ukraine, with its ensuing slump in westbound energy exports, which sent local prices rallying in 2022.

But day-ahead power prices in the wholesale market last year became more palatable for consumers, the regulator said.

The benchmark price dropped by 60% year-on-year to 95.18 euros a megawatt hour (MWh), recapturing 2021 levels. (Reporting by Vera Eckert, Editing by Louise Heavens)