Germany energy consumption increased dramatically in the first half of 2025. This dramatic development occurred due to an arcane tangle of economic forces and government intervention. In fact, the country is the largest overall economy in Europe. In the first half of this year, it announced an energy consumption of 187.3 million tonnes coal equivalent. That is a 2.3% increase compared to 183.1 million tonnes at the same time last year in 2024. First half 2024 energy demand fell marginally by 1.1% to 359.6 million tonnes. It’s suddenly trending up again!
The report from AG Energiebilanzen (AGEB) paints an impressive picture of Germany’s ongoing energy transformation. It illustrates the uneven consumption patterns that cut across public and private sectors. The surge in energy use comes as we work to meet unprecedented demands for utility electricity and heating, continuing our economic recovery through the pandemic.
Sectorial Insights
Natural gas has emerged as a linchpin of Germany’s energy transition. Even more telling, it experienced the highest growth rate, 4.7%, during the first half of 2025. This year’s increase is a major milestone that reflects this historic transition to cleaner, homegrown energy. Yet, it leaves us questioning the country’s lingering addiction to fossil fuels.
Outside of natural gas, demand for light heating oil experienced a historic increase of nearly 18%. This increase indicates that homes and facilities are making the switch to cleaner and more efficient heating sources. They’re adapting to volatile energy costs and changing climate conditions.
The steel industry has taken a proactive approach to mitigate its environmental footprint. It has already met or surpassed its targets, including a 12% reduction in hard coal consumption. This substantial reduction mirrors the overall reduction in pig iron production rates and further represents larger movements towards sustainability within industrial sectors.
Government Policies Impacting Consumption
In June 2025, the German government announced a selective reduction in electricity taxes for the energy, retail, and industry sectors. This important policy is designed to relieve cost burdens on companies and foster business competitiveness across the European single market. The decision to lower taxes may have contributed to the overall rise in energy consumption as businesses ramp up operations and demand for electricity increases.
This fairly recent policy shift has caused a lot of alarm, particularly among environmentalists. At the same time, CO₂ emissions from thermal power plants went up by 2.6%. Critics contend that while promoting economic growth and jobs is important, it should not be at the expense of environmental degradation.
AGEB Findings and Future Implications
The AGEB report offers essential perspectives on the status of Germany’s rapidly changing energy circumstances. The good news is that overall consumption of energy has increased. However, this positive takeaway focuses on the growing pains of transitioning to a greener energy system. These opposite trends—increasing natural gas and heating oil demand, combined with a decrease in hard coal use—capture what’s at stake.
As Germany continues to navigate its energy needs amidst economic recovery and environmental goals, stakeholders will need to balance growth with sustainability. The road ahead will demand more cutting-edge solutions and sustained focus from federal and state governments and their partners in the private sector.