Germany’s energy transition is gaining momentum, but it will require a massive investment of 1,240 billion euros by 2035. The country aims to phase out coal-fired power generation by 2038 and has already shut down its last nuclear power plants in April 2023. This political goal highlights the need for significant investments in expanding renewable energies and transmission networks.
According to a recent report from EY and BDEW, an estimated 1,214 billion euros in investments will be required by 2035, with 721 billion euros needed by 2030. The study emphasizes that these investments are essential to achieving the energy transition goals set by policymakers, including increasing the share of renewable energies in electricity generation to 80% by 2030.
The largest portion of these investments will go toward expanding electricity generation from renewable energies, with around 353 billion euros needed by 2030 and a total of 569 billion euros by 2035. Additionally, investments in transmission and distribution networks for electricity and gas are projected to reach 473 billion euros, highlighting the need for infrastructure development to support the energy transition.
The report also underscores the economic benefits of these investments, noting that they could contribute to significant growth and regional value creation by generating gross added value for manufacturers of capital goods related to renewable energy generation. Despite progress made in the energy transition, there is still a need for increased investments to fully realize its economic potential and achieve the set goals by