Germany’s energy consumption stagnated or even slightly declined this year as Europe’s largest economy struggles to emerge from a prolonged slump, according to research group AG Energiebilanzen.
The group estimated a 0.1% drop in demand to 10,553 petajoules (2,931 terawatt-hours) in 2025, which would be the lowest level since reunification, Energiebilanzen said in a statement. Without an increase in heating demand caused by colder weather, consumption would have slid 1.2%, it said.
The view reflects significant production declines in energy-intensive industries, with the economy still faltering after contracting in both 2023 and 2024. While there are early signs of stabilization, the outlook remains fragile, with business confidence still weak, according to data released Wednesday.
“The German economy has been on an emotional roller-coaster ride this year, swinging from optimism to pessimism, culminating in policymakers finally acknowledging — after years of denial — that the era of good times is truly over,” ING economist Carsten Brzeski said in a note.
Use of mineral oil, a byproduct from crude oil refining that makes up more than a third of Germany’s energy consumption, fell by 2.2% this year amid a slump in demand from the ailing chemicals industry, Energiebilanzen said.
Among other fossil fuels, consumption of lignite — or brown coal — shrank by more than 6%, while demand for both renewable energy and natural gas rose about 3.6%.
The increase in gas use may be linked to increased heating demand and greater reliance on gas-fired power plants as wind generation dropped early in the year.
Recent price declines in European energy markets could help spur consumption further. Benchmark European gas prices have retreated by more than 40% this year, while German power prices have also dropped.
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