Germany’s vitality consumption stagnated and even barely declined this yr as Europe’s largest economic system struggles to emerge from a protracted hunch, in keeping with analysis group AG Energiebilanzen.
The group estimated a 0.1% drop in demand to 10,553 petajoules (2,931 terawatt-hours) in 2025, which might be the bottom stage since reunification, Energiebilanzen mentioned in a assertion. With out a rise in heating demand brought on by colder climate, consumption would have slid 1.2%, it mentioned.
The view displays vital manufacturing declines in energy-intensive industries, with the economic system nonetheless faltering after contracting in each 2023 and 2024. Whereas there are early indicators of stabilization, the outlook stays fragile, with enterprise confidence nonetheless weak, in keeping with knowledge launched Wednesday.
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“The German economic system has been on an emotional roller-coaster trip this yr, swinging from optimism to pessimism, culminating in policymakers lastly acknowledging — after years of denial — that the period of excellent occasions is really over,” ING economist Carsten Brzeski mentioned in a word.
Use of mineral oil, a byproduct from crude oil refining that makes up greater than a 3rd of Germany’s vitality consumption, fell by 2.2% this yr amid a hunch in demand from the ailing chemical compounds business, Energiebilanzen mentioned.
Amongst different fossil fuels, consumption of lignite — or brown coal — shrank by greater than 6%, whereas demand for each renewable vitality and pure fuel rose about 3.6%.
The rise in fuel use could also be linked to elevated heating demand and better reliance on gas-fired energy vegetation as wind era dropped early within the yr.
Current worth declines in European vitality markets may assist spur consumption additional. Benchmark European fuel costs have retreated by greater than 40% this yr, whereas German energy costs have additionally dropped.
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