Renewable energy asset classEnergy transition 2025: Balance sheet, records and prospects

Political upheavals, global tensions, economic shifts: The past twelve months have kept us all breathing. However, despite the challenges, we can undoubtedly stand firm: The energy transition is progressing step by step - both at German and European level.

The expansion of renewables is one of the most important measures in Europe, as it is a prerequisite for us to achieve the climate goals and secure the energy supply in the long term. A recent analysis by the Energy & Climate Intelligence Unit (ECIU) dated October 2025 shows: The transformation is progressing much faster than expected, which provides positive impetus for the entire industry. The globally high willingness to invest in renewable energies is also an encouraging sign.¹ 

The connection between the electricity mix and the heat market

In 2024, renewable energies covered more than 60 percent of public net electricity generation in Germany for the first time - a level that has also established itself as the new normal in 2025 despite weather-related fluctuations.¹³ According to an analysis by Aurora Energy Research, the expansion of renewables is massively dampening the price shock of fossil fuels: A further increase in capacity by 2030 could lower the average exchange electricity price by around 20 euros per megawatt hour.¹⁴ Cheaper electricity is the strongest lever for the heat transition. After an interim slump in 2024, heat pump sales increased sharply again in the first half of 2025: Around 139,000 units sold represent an increase of 55 percent compared to the same period last year.¹⁵ The conclusion is clear: The greater the share of renewable sources in the electricity mix, the more attractive the electrification of buildings becomes. 

Despite positive developments: Remaining challenges

As encouraging as the record numbers may be, it would be wrong to close your eyes to the remaining hurdles. The core question of the energy transition remains: How do we guarantee security of supply when the wind is not blowing and the sun is not shining? The system urgently needs more flexible, secured power as a backup for the “dark silence”. Another needlehole remains the expansion of the network. While new capacity is being built in the windy north, there is often a lack of electric motorways to efficiently transport energy to the industrial centres in the south. That’s why the pace of pipeline construction needs to be accelerated further.¹⁶ The fight against the bureaucracy jungle is also far from over. Although the German Federal Government reacted with accelerated approval procedures for renewable projects in 2025,¹⁷ in practice complex requirements still slow down implementation in many places. In addition, there is a difficult market environment with volatile political and economic factors. Companies and investors need one thing above all: reliable framework conditions.