Germany’s nuclear phaseout plan was adopted in 2000 but was accelerated following the Fukushima nuclear disaster in 2011 by the government then led by Chancellor Angela Merkel.

In 2024, Germany added 3.8GW/5.7GWh of battery energy storage, though residential storage (3.2GW/4.7GWh) saw an 11.11% year-on-year decline due to slower rooftop solar growth. However, the utility-scale segment surged—new installations reached 733.6MWh, up 83.4% YoY—fueled by the need to integrate renewable energy and stabilize the grid.

On 1 October, the German cabinet announced it had approved the federal government's action plan aimed at accelerating commercial fusion deployment in Germany.

Companies are free to decide how they want to organise their production processes in accordance with the specifications of the energy sources used (electricity, low-carbon hydrogen, biomass) but selected projects will be required to achieve binding milestones for emission reduction (60% from the third year onwards, 90% in the last year of the term of the contracts).

Germany risks falling behind on its shift to cleaner energy amid counterproductive regulations and “vague” political pledges

The German energy group Uniper and the Canadian gas producer Tourmaline have signed a long-term natural gas supply agreement for 6.6 bcm over 8 years starting in November 2028.

Despite a strong start to the solar season in Europe, and record amounts of cheap new renewable capacity in Germany since the energy crisis, it’s natural gas that will increasingly decide how much households and factories in Europe’s biggest economy pay for electricity.

In the MoU, the signatories commit to pursuing the path to commercial fusion energy for Hesse and establishing the state as a leading location for cutting-edge research and the development of laser-based nuclear fusion.

There have also been reports that Nord Stream 2 could be taken under new ownership with a view to allowing Russian gas to flow via the undamaged string of the link.

Following five years of stagnation, Germany’s economy is now 5% smaller than it would have been if the pre-pandemic growth trend had been maintained.