Renewable Energy Institute today released the report "Germany’s Power Sector Status and Policy Directions: Decarbonization and Energy Security."
Germany’s energy transition has entered a new, mature phase. With renewables now supplying more than half of national electricity demand, the focus of the Energiewende is shifting from “expansion” to “expansion and integration.” This report provides an updated assessment of Germany’s power sector in 2025: covering emission trends, electricity imports and security, coal phase-out prospects, and the evolving policy direction under the new government.
The analysis shows that Germany remains broadly on track to meet its legally binding climate and renewable energy targets, despite growing challenges in grid development, flexibility, and hydrogen deployment.
The study concludes with implications for Japan. Germany’s experience illustrates that early renewable expansion, strong legal targets, and transparent monitoring systems form the foundation for long-term decarbonization. At the same time, the German case shows that the next phase of the transition requires coordinated infrastructure planning, increased system flexibility, and policies that integrate energy security and climate objectives.
<Table of Contents>
1. Legally binding targets
2. Overall status of the Energiewende
2.1 Emission reductions
2.2 Germany’s electricity mix
2.3 Remaining challenges
3. Germany’s electricity supply, imports and security
3.1 Is Germany’s energy security intact?
3.2 Understanding Germany’s cross-border electricity trade
3.3 Why are Germany’s electricity prices high?
3.4 Germany phased out nuclear in 2023. Can it really phase out coal soon too?
4. Germany’s Energiewende direction in 2025
4.1 Economic context: slow growth amid structural transition
4.2 “Energiewende Monitoring Report” 2025
4.3 Policy outlook 2025 and beyond
5. What Germany’s experience means for Japan
