Germany's wind power boom could revive as permitted new projects rapidly increase

After wind energy development began to gather pace in Germany 10 years ago, construction of new generating capacity slowed. In recent years, additions of new capacity have fallen well below the record levels of the second half of the previous decade, mainly due to a low volume of projects caused by lengthy permitting procedures. The situation has recently begun to change, however, with the number of new projects rising sharply. This year, newly commissioned capacity could reach around 5 GW, close to the 2017 record.

Wind farms, together with solar power, form a pillar of Germany’s Energiewende, or transformation of the country’s energy sector. While new solar capacity in Germany has been growing ever faster in recent years, development of wind farms has slowed.

By the end of last year, Germany had around 100 GW of installed solar capacity. Because of their pronounced seasonal output patterns, solar plants often supply undesirably large volumes of electricity during the summer. Wind farms, however, are particularly important in winter, which is also a period of higher electricity demand.

According to S&P Global, Germany has just over 63 GW of installed onshore wind capacity. These plants generated approximately 111 TWh last year, slightly less than in 2023. Last year, installed onshore wind capacity in Germany grew by around 2.5 GW, as approximately 0.7 GW of capacity was decommissioned alongside the construction of new wind farms.

Despite renewed construction, targets remain uncertain

The outlook in Germany is brightening, however, thanks to a significant increase in new projects. According to the German Wind Energy Association (BWE), installed onshore wind capacity could grow by 4.8 to 5.3 GW this year. Last year, the volume of newly approved projects doubled year on year to 14 GW, according to the association. Over the past two years, the potential for new capacity expected to come online in the coming years has risen sharply.

“There must be no turning point now. Thanks to the record results in 2024 (in permitting new projects and auctions), the targets of the EEG (Renewable Energy Sources Act) are within reach,” BWE President Baerbel Heidebroek said, according to S&P Global.

Analysts at S&P Global Commodity Insights expect installed onshore wind capacity in Germany to grow by 12 GW this year and next. By the end of 2029, total installed capacity could reach 98 GW, they say, still well below the 2030 target of 115 GW.