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More Than 100 Billion kWh of Wind Power in 2023: Wind Energy is Most Important Energy Source in Germany - Decline in Coal-fired Power Generation

Münster, Germany - Wind energy is the most important energy source in the electricity sector in Germany in 2023. At the same time, the share of hard coal and lignite has slumped significantly since the beginning of the year, despite the phase-out of nuclear energy.

In Germany, the wind and solar energy markets are developing with great momentum in the current year. From January to September 2023, wind and solar plants with a capacity of around 13,000 MW have gone into operation (Jan - Sep 2022: around 7,520 MW). At the same time, renewable power generation is also picking up.

Coal-fired power generation down by over 30 percent

In Germany, wind energy is by far the most important energy source in the electricity sector in the current year 2023. Today (Oct. 19, 2023), the 100 billion kWh mark for wind power this year has already been exceeded. Of this, around 83 billion kWh is accounted for by onshore wind energy and 17 billion kWh by offshore wind energy. This is the result of an analysis of data from transmission system operators by the International Economic Forum for Renewable Energies (IWR).

Coal-fired power generation in Germany has declined by more than 40 billion kWh to 90 billion kWh since the beginning of the year compared with the same period last year.

"Contrary to many forecasts, coal-fired power generation in 2023 has not increased so far, despite the nuclear phase-out in Germany, but has declined by more than 30 percent," said IWR head Dr. Norbert Allnoch in Münster. So far this year, the generation of electricity from lignite has reached around 60 billion kWh (-22 billion kWh) and that from hard coal around 30 billion (-19 billion kWh). Electricity generation from natural gas and renewables have increased.

Wholesale electricity prices back to summer 2021 level after turbulence

Wholesale electricity prices in Germany have fallen back to the level of two years ago (summer 2021) following the turbulence caused by the massive outage of French nuclear power plants in 2021/2022 and the skyrocketing gas prices in the wake of the Russian invasion of Ukraine. Reasons for the falling exchange electricity prices include lower gas prices, the return and recommissioning of defunct French nuclear power plants, and the further addition of renewable power plant capacity in Germany. For example, according to data from the market master data register at the German Federal Network Agency (BNetzA), new wind and solar plants with a capacity of 13,000 MW (13 GW) went into operation from January to September 2023 alone. Of this, solar energy accounts for around 10,300 MW and wind energy for around 2,700 MW. This is shown by the IWR's analysis of data from the market master data register kept at the Federal Network Agency (BNetzA) (data status: 13.10.2023).

IWR forecast 2023: over 15,000 MW of new RE capacity in Germany - 20 billion kWh more electricity annually

In terms of regional differentiation for solar energy, Bavaria is in first place in the German state rankings after the first nine months of 2023 with around 2,540 MW of new PV capacity, followed by North Rhine-Westphalia (1,640 MW), Baden-Württemberg (1,380 MW), Lower Saxony (1,060 MW) and Brandenburg (760 MW).

In terms of wind energy, Schleswig-Holstein ranks first in a comparison of German states, with around 870 MW of newly commissioned capacity in the period from January to September. Lower Saxony follows in second place with 425 MW, ahead of North Rhine-Westphalia (340 MW), Brandenburg (280 MW) and Hesse (140 MW).

For 2023 as a whole, the IWR forecast remains unchanged, according to which new solar and wind capacity connected to the grid in Germany could reach more than 15,000 MW (15 GW). According to this, the additional electricity generation from wind and solar additions alone in 2023 amounts to approximately 20 billion kilowatt hours of electricity annually.



Source: IWR Online, Oct 10 2023