Germany appearing less green than Texas in Harald Lesch's climate documentary, as chaos ensues in Germany's environmental policies.
In the realm of renewable energy, two countries are making significant strides, but with varying results. Germany, a global leader in renewable energy, is aggressively expanding its capacity, particularly in wind and solar power. However, challenges in grid infrastructure, economic pressures, and permitting are hindering its progress.
Texas, on the other hand, is setting an example with a highly reliable and cost-effective renewable grid, dominated by solar and wind power. The Lone Star State's grid benefits from market designs and infrastructure that favour renewable integration and dispatch flexibility.
In early 2025, Germany installed 2.2 GW of new onshore wind capacity, a 67% increase year-over-year. This pace, however, still falls short of Germany’s Renewable Energy Sources Act (EEG) targets of 115 GW onshore wind by 2030. Germany also leads in solar, surpassing 70 GW installed capacity, largely through rooftop solar incentivization and net metering policies.
Despite this progress, a surge in solar production has caused captured solar power prices to plunge by 61% to 18.43 €/MWh, undermining producer profitability and stressing the renewable sector financially. The German government has responded by injecting €5.2 billion into the EEG fund to support producers.
Germany is pushing for grid and infrastructure upgrades to better integrate renewables, but the need to accelerate storage solutions and simplify permitting remains critical to hit climate and energy security goals. The federal government is reviewing policies to balance demand, security, and renewables expansion.
Texas, on the other hand, has the highest share of renewables in its U.S. grid, driving enhanced reliability and reduced electricity prices. The Electric Reliability Council of Texas (ERCOT) reports a 0.3% chance of blackouts for August 2025, far better than previous years. Residential prices average 10 cents/kWh, 24% below the U.S. average.
The difference between the two countries lies in their approaches. Germany relies heavily on government incentives and regulatory reforms under the EEG to drive capacity growth, while Texas benefits from market-driven investments and grid operator expertise. Germany faces strained economics amid high renewable output and limited storage, whereas Texas has demonstrated cost-effectiveness and resilience with significant wind and solar penetration supported by grid improvements.
These insights offer valuable lessons for other regions aiming for large-scale renewable integration. Germany's challenges serve as a reminder of the complexities involved in transitioning to renewable energy, while Texas's success story underscores the potential for a reliable and cost-effective renewable grid.
- Science and finance play crucial roles in addressing climate-change and renewable-energy initiatives, as demonstrated by Germany's injection of €5.2 billion into the EEG fund to support struggling renewable energy producers.
- The environmental-science sector can learn valuable lessons from countries like Texas, which boasts a highly reliable and cost-effective renewable grid backed by market-driven investments and grid operator expertise.
- In the realm of renewable energy, both Germany and Texas showcase distinct approaches: Germany focuses on government incentives and regulatory reforms, whereas Texas relies on market forces for investments and grid operating know-how.
- As more regions aim for large-scale renewable integration, following in the footsteps of countries like Germany and Texas can illuminate their respective achievements and challenges, ultimately leading to an optimized transition to renewable energy for the benefit of the environment and the industry.
