Energy policy reality-check: implications for Germany’s power market, renewables & energy storage

Germanys energy transition is entering a critical phase. With renewables now supplying over 55% of electricity and a legally binding net-zero target for 2045, the country faces mounting challenges in balancing its policy ambition with market realities. The government’s latest market monitoring has highlighted rising integration costs, slow demand growth, and increasing pressure to rationalise support mechanisms. These developments signal a shift towards more market-based approaches, impacting renewables and storage investment, and grid infrastructure strategies. In the light of this “reality check”, our subject matter experts reflect on potential implications for the key technologies facilitating the market’s continued decarbonisation. We conclude by providing a technology report card, summarising the current situation, outlook and key challenges facing wind, solar and battery storage in Germany’s changing policy environment.