Germany is witnessing a decline in energy consumption for the second year in a row to its lowest levels on record, as continuing economic challenges in Europe cause the largest economy in the region to slow down, according to the research group “AG Energy Billantsen” and reported by Bloomberg.
The research group stated that the significant decline in the production of processing and manufacturing industries during the current year contributed to reducing energy consumption, even with a slight increase in demand recently.
Energy consumption is expected to decline by 1.7% to reach 10,453 petajoules (2,904 terawatt hours) in 2024, after falling to a record low level the previous year.
Weak economic stability
Although Germany avoided a technical recession (two consecutive quarters of contraction) in the third quarter of the year with unexpected slight growth, the economy is still suffering from recession due to the decline in industrial activity and the rise in problems in the automobile industry, according to Bloomberg.
Germany’s shift towards renewable energy appears to have become more evident this year, with coal and brown coal consumption falling by 15% in the first nine months of 2024, while renewable energy and natural gas consumption rose by approximately 3% each.
Bloomberg indicates that the increasing reliance on renewable energies and purchasing electricity from neighboring countries has contributed to reducing coal consumption for power generation by 39%.
