Sharp rise in energy consumption

28.05.2025

Source: E & M powernews

Energy consumption in Germany rose unexpectedly in the first three months of the current year. One reason for this was exceptional weather conditions.

According to preliminary calculations by the Working Group on Energy Balances ("AGEB"), domestic primary energy consumption reached 3,151 petajoules (PJ) or 107.5 million tons of coal equivalent (HCU) in the first quarter of 2025. This was 5.5% more than in the same quarter of the previous year. One of the main reasons for this was weaker feed-in from renewables, Ageb announced on May 27.

According to the report, the "substitution of electricity generation from wind and water by fossil fuels, which was limited due to unfavorable weather conditions" had a significant impact on the current consumption trend. The lower efficiency of thermal power plants compared to the use of renewable energies led to an increase in the consumption of primary energy, according to the Ageb in its press release.

Another effect was the significantly cooler weather compared to the same period last year, particularly in February, which resulted in increased demand for heat. Adjusted for this weather effect, energy consumption would only have risen by 3.5% in the first three months of the current year. The continued weak economic development had the effect of reducing consumption.

According to the Ageb, the different price trends for individual energy sources had a "differentiated impact" on the development of consumption: Lower import prices for crude oil favored higher consumption in the transport sector and prompted many consumers to increase their heating oil stocks. The lower import price for hard coal compared to the first quarter of 2024 improved the competitive position of coal on the electricity market. On the other hand, the rise in natural gas prices was reflected in higher heating and production costs as well as an increase in electricity prices.

Cold weather caused natural gas consumption to rise

The decline in the contribution of renewables to the energy supply in the first quarter of 2025 caused by unfavorable weather conditions led to changes in the energy mix. The share of natural gas increased, while coal recorded stable to slightly increasing shares.

Natural gas consumption increased by 11.6% in the first quarter of the current year. The cold weather, particularly in February, led to a significant increase in demand for natural gas for heating purposes. The use of natural gas to generate electricity also rose sharply, helping to offset the decline in electricity generation from wind and water. Industries with high natural gas consumption also contributed to the increase in consumption.

Hard coal consumption in the first three months was around five percent higher than in the same period last year. The use of hard coal in power plants to generate electricity rose by 33% due to the decline in feed-in from wind turbines and hydroelectric power plants. In contrast, sales to the iron and steel industry fell by 14% due to the drop in pig iron production.

Very low wind and dry weather

In the first quarter of 2025, electricity imports rose by more than 15% to 19 billion kWh. This was offset by exports of 16.2 billion kWh (minus 5.6%). The import surplus amounted to just under 2.8 billion.

The contribution of renewable energies in the first quarter of 2025 was 3.2% lower overall than in the same period of the previous year. The low wind and dry weather reduced electricity generation from wind by 30% and from water by 23%. A high number of hours of sunshine led to a 24% increase in photovoltaics. The use of renewable energies in heat generation increased slightly due to the weather.

Structure of primary energy consumption in Germany in the first quarter of 2025

Source: AGEB

However, the AG Energiebilanzen points out that the development in the first quarter of 2025 was mainly characterized by exceptional weather conditions and does not allow any reliable conclusions to be drawn about the course of the year as a whole.

Author: Heidi Roider