German end consumers recently experienced negative electricity prices for the first time in 2024, with rates briefly dipping to minus 25.03 U.S. cents per kilowatt-hour (kWh) due to severe oversupply from solar and wind power generation. The phenomenon, which persisted for eight hours from 9 a.m. to 5 p.m., allowed some consumers to effectively earn money by using electricity.
The energy crisis triggered by the Russia-Ukraine conflict has exposed vulnerabilities in Germany’s energy sector. As Europe’s economic powerhouse, Germany’s own economy relies on affordable, green electricity to sustain its industrial base, which accounts for over 20% of GDP, while also striving to meet its 2045 carbon neutrality target. The country now faces unprecedented urgency at a crossroads in its energy transition.
Surplus Renewables Trigger Negative Pricing
Data from European electricity monitoring firm Tibber showed that after deducting taxes and service fees, German end consumers paid negative electricity prices for the first time this year on May 11, averaging around minus 18 cents per kWh. Prices fluctuated regionally, with net consumer rates ranging from minus 4.9 cents to minus 12 cents per kWh.
According to Tibber, the negative pricing period began at 9 a.m. and ended at 5 p.m., hitting its lowest point between 1 p.m. and 2 p.m. Consumers using electricity between noon and 3 p.m. effectively received payments after taxes and fees were deducted.
Grid Flexibility Challenges Persist
Merlin Lauenburg, managing director of Tibber, warned that negative prices could recur in Germany this summer. Last year, the country recorded 457 hours of negative pricing—a 50% increase from 2023. Addressing this issue requires enhancing grid flexibility through storage systems and flexible power sources like gas plants.
While negative prices offer short-term gains for some users, Germany’s overall electricity costs remain high, directly impacting consumers. Statista data shows German electricity prices peaked in February 2025 before declining slightly in March and April, though they have yet to return to pre-pandemic levels.
Coal and natural gas still account for roughly 40% of Germany’s energy mix, with prices influenced by both global fuel markets and domestic renewable energy fluctuations, posing challenges to the sustainability of its green transition.
German media project that scaling renewable energy and grid infrastructure will require substantial investment over many years. Only with adequate funding and development will Germany fully realize the economic benefits of wind and solar power.
High Power Costs Threaten Industrial Competitiveness
The burden extends beyond households. In February, industrial representatives urged the German government to address high electricity prices, warning of plant closures and relocations abroad without policy relief. While the government signaled willingness to support struggling industrial firms, critics argue such measures could undermine market stability and climate goals.
German media have highlighted the country’s high industrial electricity costs, which endanger jobs despite subsidies varying by company size and sector. EU data ranks Germany among the top three EU nations for non-household electricity prices—encompassing industries, schools, and government offices—while Chinese firms and public institutions face significantly lower costs.
A Bavarian Business Association study found that in 2023, Chinese industrial electricity averaged around 8 cents per kWh, compared to 20 cents in Germany, which includes surcharges and grid fees. Germany now plans to reduce these附加 fees (surcharges) and expand subsidies to lower costs.
