Reduced electricity demand could slash Germany’s transition investments by 2035 – report

Net electricity consumption in Germany may not rise as much in the coming years as assumed in current regulatory planning, according to a report by consultancy McKinsey. Electricity demand could rise by just 1 to 2 percent annually due to the weak economic situation, the slow ramp-up of e-mobility and heat pumps and delayed development of electrolysis capacities for green hydrogen, the report found. If the current trend continues, net electricity demand will be 530 terawatt-hours (TWh) per year in 2030, significantly below the estimated 670 TWh estimated in Germany’s Renewable Energy Act (EEG), but still far above the 2022 value of 480 TWh.