Germany’s Energy Transition Needs Green Molecules

Renewable Power Is Now Central

In 2025, Germany’s gross electricity production reached about 507.5 TWh. Renewable power accounted for 57.2% of total generation. Wind power was the largest single source at 26.3%, followed by solar photovoltaic power at 18.0%. Biomass contributed 8.4%, while hydropower accounted for 3.3%. Nuclear power no longer contributed to the German electricity mix, following the final shutdown of Germany’s nuclear plants in 2023.

At the same time, fossil power remains part of the system. In 2025, natural gas generated 17.0% of Germany’s electricity, lignite 14.6%, and hard coal 5.8%. This means Germany’s power transition is already advanced, but not complete. Renewable electricity is now the backbone of the system, while gas and coal still provide dispatchable capacity, system balancing and industrial energy security.

The Wider Energy System Still Relies on Fossil Fuels

Electricity is only one part of Germany’s energy system. According to AG Energiebilanzen, Germany’s 2025 primary energy consumption was estimated at 10,553 PJ. Oil remained the largest energy source, covering 35.7% of energy consumption. Natural gas accounted for 26.9%, renewables 20.6%, while hard coal and lignite each contributed around 7%.

This structure shows the central challenge of Germany’s energy transition. The country has made strong progress in renewable electricity, but transport, heating, industrial heat and chemical feedstocks still depend heavily on oil, natural gas and coal. Therefore, Germany’s transition is not only about generating cleaner electricity. It is about replacing fossil molecules across the whole economy.

Germany’s Targets Require More Than Electrification

Germany has set ambitious long-term goals. The International Energy Agency notes that Germany’s Climate Law sets a framework for reaching net zero emissions by 2045. By 2030, Germany aims for 80% of electricity supply to come from renewable energy sources, rising to 100% by 2035. Germany also plans major capacity expansion, including 100–110 GW of onshore wind, 30 GW of offshore wind, 200 GW of solar power, and investment in 10 GW of hydrogen by 2030.

For sectors that can be directly electrified, the pathway is relatively clear. Electric vehicles, heat pumps and electric industrial equipment can use renewable power directly. But some sectors are harder to electrify. Steel, chemicals, refining, shipping, aviation and parts of heavy transport need low-carbon molecules, not only electrons.

Why Green Hydrogen and Green Ammonia Matter

This is where green hydrogen becomes essential. Produced by electrolysis using renewable electricity, green hydrogen can replace fossil-based hydrogen in industry and serve as a feedstock for fuels and chemicals. It can also support a power system with high shares of wind and solar by providing flexible energy storage and seasonal balancing.

Green ammonia enters the picture as both a hydrogen derivative and an industrial molecule. Ammonia is already used in fertilisers and chemicals. In the future, it may also serve as a carrier for imported hydrogen, a shipping fuel candidate and a feedstock for low-carbon industrial supply chains. In some cases, imported ammonia may be used directly; in others, ammonia cracking could convert ammonia back into hydrogen for industrial users.

Germany’s green energy future will not be built by renewable electricity alone. It will also require green molecules. Green hydrogen and green ammonia are not side topics in Germany’s energy transition. They are necessary tools for moving renewable energy from the power sector into industry, transport and chemical value chains.

Data Sources Used

1. German Federal Statistical Office / Destatis
   Used for Germany’s 2025 gross electricity production, renewable share, wind, solar, biomass, hydropower, gas, lignite, hard coal and nuclear power data. https://www.destatis.de/EN/Themes/Economic-Sectors-Enterprises/Energy/Production/Tables/gross-electricity-production.html
2. AG Energiebilanzen
   Used for Germany’s 2025 primary energy consumption estimate and energy mix shares, including oil, natural gas, renewables, hard coal and lignite. https://ag-energiebilanzen.de/energieverbrauch-wird-2025-stagnieren
3. International Energy Agency / IEA Germany Country Profile
   Used for Germany’s climate neutrality target, renewable electricity targets for 2030 and 2035, renewable capacity expansion targets, coal phase-out context and hydrogen investment target. https://www.iea.org/countries/germany