Since then, clear targets and long-term policies – including the Federal Climate Protection Plans of 2016 and 2019 – have given investors confidence without being too rigid. Independent bodies like the Federal Network Agency (BNetzA) have played a critical role by supporting tools such as the Grid Development Plan, which proved essential during energy crises. And despite phasing out nuclear power by April 2023, Germany’s power system remains one of the most stable in the world.

But the picture is more complex than these achievements suggest. Germany still needs to phase out almost 3,000 TWh of largely fossil-fuel primary energy. Energy prices remain significantly higher than in competitor nations, and major policies have been delayed or derailed.

Here are five lessons other countries can learn from Germany’s challenges as well as its successes.

1. Energy policy must be consistent, win public trust and take a long-term view

Germany’s energy transition lost momentum when its focus shifted to areas of hard-to-decarbonize demand, such as heating and transport. At the same time, the debate intensified over whether to phase out conventional generation early, including nuclear and coal.

Under growing pressure to act, the government made big, long-term energy policy decisions. But while this approach has been highly effective in the past, in recent years, short-term dynamics – including heated ideological debates – have dragged some policies off course.

In 2024, a draft amendment to the Building Energy Act (GEG), designed to speed up the shift to heat pumps, had no clear rollout plan and didn’t address worries about cost and choice. The media and public backlash that followed both obscured the amendment’s original purpose and undermined public support, before the new government promised to abandon it. And while the nuclear exit eventually happened, political flip-flopping along the way damaged trust and made long-term planning harder. Even the EU’s phase-out of internal combustion engines (ICE), which reflected existing market trends, reopened arguments about whether government should stay “tech-neutral”.

What other countries can do

  • Create stable energy policy that transcends election cycles and earns public trust.
  • Consult early and communicate clearly about policies that will have a significant effect on people’s lives.
  • Base decisions about nuclear energy and other controversial technologies on data and reason, not emotion.
  • When markets are already shifting, such as towards EVs, focus on enabling progress instead of fighting ideological battles.

2. Federalism can boost support for renewables, but it needs proactive governance

Germany’s federal structure – with 16 states, four transmission system operators (TSOs) and around 900 distribution system operators (DSOs) – has encouraged local buy-in for renewables plans, especially wind and solar. But it’s also delayed the expansion of the grid by making the planning process for large central infrastructure, like high-voltage transmission lines, complex, slow and contentious. The same goes for issuing permits for new wind projects.

Recent increases in onshore wind are a good example of how simplifying and speeding up processes can be effective. But it takes proactive coordination to keep pace with the growth in renewables.

What other countries can do

  • If you have, or adopt, a decentralized energy system, make sure you pair it with a coordinated approach for planning infrastructure across its boundaries.
  • Balance local autonomy with national needs: standardize rules, digitalize approval processes and establish strong coordinating bodies.

3. Expanding renewables only works if the grid expands with it

In 2015, renewables supplied about 32.5% of Germany’s electricity and had around 89 GW of installed capacity. In 2024, that capacity had doubled to nearly 190 GW.

This rapid expansion has naturally created big swings in renewable energy output. To keep the system stable, wind energy generated in the north needs to flow to demand centers in the south. But because the grid hasn’t expanded fast enough, operators often can’t move that electricity.

Instead, they must switch off wind farms in the north and switch on expensive gas plants in the south. And because Germany has one electricity price across the whole country, these measures push costs up everywhere. Even in the north where wind power should be cheap.


What other countries can do

  • Expand grid capacity at the same time as renewable capacity, particularly if you have a single pricing zone.
  • Assess whether your price zone structure still makes sense as the share of renewables grows. If not, adjust market and tariff design so price dynamics better reflect the current state of the grid.
  • Expect resistance if you’re considering zonal pricing – from federal and state-level government, industry and TSOs.

4. Take a pragmatic, flexible approach to regulation

Germany likes to be associated with precision, thoroughness and efficiency. That’s why it’s put rigorous standards and regulation in place to protect an increasingly digitized power grid from cyber-attacks. But this precision has significantly slowed down the adoption of smart meters: in July 2025, only about 3% of connection points had one, compared with an EU average of over 60%.

Meanwhile, more renewable energy sources are feeding into the grid, and more homes and cars have switched to electricity. With power flowing in different directions, and demand see-sawing, it’s more important than ever that operators can monitor and control the flow.

Smart meters supply a key part of that oversight. Delaying their rollout also prevents utilities from offering flexible tariffs, which support the energy transition by allowing consumers to use clean energy when it’s abundant and cheap.

What other countries can do

  • Prioritize progress over perfection when setting regulation and make sure standards are clear and achievable.
  • Set clear but flexible guardrails and stable, long-term targets when creating new markets, such as flexible tariffs.
  • Learn from experience and adapt guardrails to make sure the market stays reliable for investors and consumers.

5. Diversify supply to avoid the worst price spikes

Until early 2022, Germany relied on Russian pipelines like Nord Stream 1 to provide more than half its gas. After Russia invaded Ukraine, Germany acted fast to replace that supply, rapidly building LNG imports. It also rescued Uniper – the nation’s indispensable importer and supplier of gas – for €13.5 billion.

The sudden loss of cheap Russian gas sent industrial energy prices soaring, hitting companies in energy-intensive sectors like chemicals, metals, and glass the hardest. As these use over 75% of Germany’s industrial energy, and are central to its manufacturing economy, its industrial competitiveness was badly hurt. That’s especially compared with countries where energy is much cheaper, like the US and China.

What other countries can do

  • Diversify suppliers to escape the sharpest, most abrupt price spikes.
  • Reduce exposure to global fossil fuel markets by speeding up the shift to renewables at home.
  • Anticipate and mitigate new risks early, like the availability of critical raw materials for clean tech.

To sum up…

Germany shows that with strong long-term policy, institutions and public support, rapid growth in renewables can coexist with a stable power system. Its recent struggles with high prices, stalled reforms and slow grid expansion offer clear lessons for other countries.

For more perspectives on some of the issues covered here, see the blogs by my colleagues Pete King (UK), Chad Klekar or Dieter Schultz (US).