Germany experienced a notable rise in energy consumption during the first half (H1) of 2025, according to a report released by the industry statistics group AG Energiebilanzen (AGEB).

In the first six months of 2025, energy usage in Europe's largest economy reached 187.3 million tonnes of coal equivalent, a 2.3% rise from 183.1 million during the same period in 2024, as detailed in AGEB's report.

This rise was due to cooler weather and a slight improvement in overall economic performance.

For the full year 2024, energy consumption totalled 359.6 million tonnes - a decrease of 1.1% from the previous year, according to Reuters.

Natural gas usage surged 4.7%, while light heating oil demand rose almost 18%, reflecting changes in weather patterns.

Despite overall stability in imported hard coal usage, there were distinct variations across different sectors.

Coal consumption in power plants increased by a substantial 23% as power stations sought to compensate for reduced wind and hydroelectric generation due to unfavourable weather conditions, while photovoltaic (PV) power saw an impressive increase of 25%.

In contrast, the steel industry cut back on its hard coal consumption by 12%, aligning with a reduction in pig iron production rates.

AGEB also estimated that CO₂ emissions from thermal power plants rose by 2.6%.

In June 2025, Germany announced a selective reduction in electricity taxes for the energy, retail and industry sectors. This decision has raised concerns among industry stakeholders.

While the proposed tax cuts are intended to alleviate financial burdens, they have faced criticism for potentially distorting the market and having a limited impact.