Annual solar installation could hit 15 GW in Germany as new government aims to be greener

The new coalition government succeeding former Prime Minister Merkel comprises the Social Democratic Party of Germany (SPD), The Greens, and Free Democratic Party (FDP). The Greens gained doubled seats in the parliament, indicating the coalition’s prioritizing measures against climate change, sending a positive signal to the renewable industry.

Renewables are with vital importance in the coalition government’s battle against climate change. Presently in Germany, one fourth of electricity generation comes from coal-firing. The new coalition wishes to bring coal-firing to an earlier end by 2030, instead of the previously scheduled 2038 and, with economic and political clout it has in Europe, encourage other nations to follow suit. The new coalition has yet to make specific commitment by far, but the commitment is expected to ramp-up demand for renewables in the country. Also, Germany aims to raise renewables’ generation share from 40% to 80% by 2030. To attain this goal, the country needs to invest more in renewables, meaning more deployment of solar and onshore wind energies. Additionally, Germany is expected to have 15 million of EVs by 2030, advancing faster than the EU, which aims to produce solely zero emission vehicles from 2035 onward.

As for the PV sector, the coalition government plans to add 142 GW more of PV capacity, raising it from the current 58 GW to 200 GW by 2030, entailing at least 15.8 GW of addition each year, as compared to the 5 GW annual increases in recent years. In the future, it may be mandatory for rooftops in Germany to be equipped with PV systems.

The coalition government’s announcement means that relevant authorities must further upgrade grid networks, adjust renewable energy capacities allocated through tenders, provide stronger monetary support for the implementation of German Renewable Energy Sources Act (EEG), make customs supervision and control friendlier for long-term PPAs, and lift restrictions on newly added renewable energy generation.

With Germany being the largest economy in Europe, the new coalition government not only drives up domestic demand for renewable energies, but also motivates other EU countries to embark on energy transition. The new government has pledged to wield its influence over other developed countries, setting more ambitious goals for reducing carbon emission and realizing energy transition.