Germany energy transition and security measures

Germany is advancing several initiatives to manage its energy transition and ensure electricity supply security. In August 2026, the federal network agency, Bundesnetzagentur, launched its third rooftop solar PV tender of the year, seeking to award 296.3MW of capacity at a maximum price of €0.10/kWh.

To stabilize the grid as it relies more on weather-dependent renewables, Germany is implementing a new capacity market mechanism under the StromVKG legislation. Approved by the European Commission, the Bundestag, and the Bundesrat, this system allows grid operators to purchase power readiness through competitive auctions. The mechanism aims to secure supply during periods of low renewable production. Initial auctions are scheduled for 2026, targeting 9 GW of new, long-term capacity within Germany. Eligible technologies include power plants, energy storage, and demand-side response providers, with some resources from other EU countries connected to the German grid potentially eligible. These resources must be capable of operating at full rated power for at least 10 consecutive hours. While gas remains part of the system, the long-term goal is transitioning gas-based blocks to hydrogen by the full implementation of the market in 2031.

Furthering renewable expansion, Germany is deploying taller wind turbines, including 7-MW models, to meet a 2030 onshore wind capacity goal of 115 GW. Additionally, the Bundesnetzagentur concluded a tender for innovative solar-plus-storage projects. This tender attracted 53 bids totaling 678 MW, resulting in 32 projects with a total capacity of 480 MW being awarded at an average price of €0.0514/kWh. Bavaria received the largest share of this capacity at 177 MW.