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Renewables Reach 72.4% in May as Solar Industry and Grid Face Strains

Katherina Reiche has launched a review of energy policy against the backdrop of rising grid congestion costs.

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Overview

  • Renewable sources accounted for a record 72.4% of Germany’s electricity mix in May, led by 29.2% from solar power and 28.9% from wind.
  • Network congestion forced curtailment of wind and solar in 2024, triggering nearly €554 million in taxpayer-funded compensation.
  • Germany’s solar manufacturing sector has filed insolvency proceedings amid plunging prices and competition from inexpensive Chinese imports.
  • Fossil fuels overtook renewables in Q1 2025 with a 50.5% share following an exceptionally wind-poor quarter, the first majority since Q1 2023.
  • Economic Minister Katherina Reiche’s policy review could slow the pace of renewable capacity growth and steer support toward new gas projects.