Germany faces high electricity costs and CO2 emissions amid energy transition

Germany is facing significant challenges following its energy transition, characterized by rising electricity costs and increased CO2 emissions. Household electricity prices have risen from approximately 14–15 cents per kilowatt-hour in 2000 to an average of 47.01 cents in 2023, with projections remaining high for the coming years.

Gross electricity production has declined from a peak of 610 TWh in 2019 to approximately 503 TWh in 2024, turning Germany into a net importer of electricity from countries like France and Poland. Despite the expansion of wind and solar power, the carbon intensity of German electricity reached 344 grams per kilowatt-hour in 2025, significantly higher than in France or Norway.

Chancellor Friedrich Merz has acknowledged that the rapid phase-out of nuclear energy contributed to high prices. He noted that the energy crisis was further exacerbated by the loss of Russian gas supplies and geopolitical tensions affecting LNG access. In response, the government is proceeding with plans to build gas-fired power plants, a move coordinated with the European Union.