Electricity prices - Germany

German Electricity Market Overview

Primary Electricity Sources in Germany’s Energy Mix

Germany’s electricity generation in 2025 is dominated by renewable energy sources, which reached record levels in 2024 and continue to grow. Key sources include:

• Wind Power: The single largest source of electricity. In 2024 wind (onshore + offshore) produced about 136 TWh – roughly one-third of Germany’s net public power generation. This made wind ~33% of the electricity mix, keeping it the top source of power.
• Solar Photovoltaics: Solar PV output hit an all-time high in 2024, generating ~72 TWh (with ~60 TWh fed into the public grid). This corresponded to about 14% of generation, a share that is steadily rising thanks to rapid PV expansion.
• Other Renewables: Biomass (e.g. biogas, wood) consistently contributes on the order of 35–36 TWh (around 8% of generation). Hydropower adds roughly 20–22 TWh (about 4–5%). In total, renewable sources (wind, solar, biomass, hydro) provided approximately 60%–63% of Germany’s electricity in 2024 – the highest share on record. This majority renewable share is a recent achievement, enabled by sustained growth in wind and solar output.
• Coal: Coal remains the largest conventional (fossil) source, though in decline. Lignite (Braunkohle) plants generated about 71 TWh in 2024 (roughly 16% of the mix), and hard coal (Steinkohle) plants about 24 TWh ( ~5% share). Overall, coal-fired generation made up just over one-fifth of the electricity mix in 2024, continuing to shrink year-on-year. Notably, 2024’s combined coal generation (≈95 TWh gross) was the lowest in Germany since the 1950s.
• Natural Gas: Gas-fired power has a significant but smaller role. In 2024, public grid supply from natural gas was about 48.4 TWh (≈11% share). Additionally, industry self-generation contributed ~25.6 TWh from gas. Gas use in power grew slightly (+9.5% vs 2023) as some coal and nuclear capacity exited.
• Nuclear: As of 2025, Germany has no nuclear power generation. The last three reactors were shut down in April 2023, completing the nuclear phase-out policy. (In their final year 2022, those plants still supplied ~6% of generation, but that share is now 0%.) Loss of nuclear output has been compensated by the expansion of renewables.
• Imports/Other: Any remaining demand is met via electricity imports and minor sources. In 2024 Germany was a net importer of ~24.9 TWh (about 5% of consumption) due to cheaper power abroad in some periods. Minor contributions come from oil and waste fuels, but these are very small fractions of the mix. Overall, 2024’s mix was “cleaner than ever”, with CO₂-intensive coal and gas at historic lows and renewables at record highs.

Composition of Electricity Prices for End Customers

German end-user electricity prices are comprised of several components: the energy supply cost, network delivery fees, and a range of taxes/levies. Germany has historically had one of Europe’s highest retail electricity prices due to substantial taxes and policy levies. As of 2025, the average household electricity price is about €0.3969 per kWh (39.7 cents). This final price can be broken down into key components for a typical residential customer:

• Energy Procurement & Retail: Roughly 40% of the price (~16.0 ¢/kWh) is the base energy cost – i.e. the charge for generating or buying the electricity and the supplier’s margin. Suppliers procure power on wholesale markets and/or via contracts, and this cost is passed through to consumers along with the retailer’s operating costs and profit.
• Grid Delivery Fees: About 28% of the price (~11 ¢/kWh) goes to network charges. These regulated fees cover the transmission and distribution infrastructure that delivers power to homes and businesses. Grid fees are set regionally and approved by the regulator (Bundesnetzagentur), and they reflect maintenance and expansion of power lines. (Grid tariffs can vary by network area, but the national average is around 11 cents/kWh in 2025.)

• Taxes & Levies: The remaining ≈32% (~12.7 ¢/kWh) of the household price consists of government-imposed taxes, surcharges, and other levies. These add-ons fund energy policy programs and government budgets. Major elements in 2025 include:

  • Value-Added Tax (Mehrwertsteuer): 19% VAT is applied to the net price of electricity for households. This accounts for roughly 6–7 ¢/kWh out of the 39.7 ¢ gross price (since VAT is charged on the sum of all other components).

  • Electricity Tax (Stromsteuer): A federal excise tax of €0.0205 per kWh (2.05 ¢) is charged on all electricity consumption. This tax is set by the Stromsteuergesetz and contributes to the general budget. Notably, certain industrial and manufacturing companies can apply for a reduction to the EU-minimum tax rate (0.05 ¢/kWh) in 2024–2025, as a relief measure for energy-intensive industries.

  • Concession Fee (Konzessionsabgabe): A levy paid to local municipalities for the right to use public ground for power lines. It varies by city size (on the order of ~1–2 ¢/kWh for households) and is capped by law. For example, in towns >500,000 inhabitants the max concession fee is around 2.39 ¢/kWh, in smaller communities lower. This fee is embedded in the energy bill and passed to the city treasury.

  • Renewables & Grid Surcharges: Policy surcharges (⚡ Umlagen) total ~2.65 ¢/kWh in 2025 for typical consumers. These fund various statutory programs:

  • The CHP surcharge (KWKG-Umlage) to support cogeneration (combined heat-and-power) plants – about 0.277 ¢/kWh in 2025.

  • The §19 StromNEV surcharge to subsidize reduced network fees for energy-intensive industry – about 1.558 ¢/kWh (for <1 GWh/year users) in 2025.

  • The Offshore grid surcharge (Offshore-Netzumlage) to fund costs and liability for offshore wind grid connections – around 0.816 ¢/kWh in 2025.

  • (Note: The Renewable Energy Act EEG surcharge – which historically funded green energy – was abolished in 2022 amid the energy crisis. Since July 2022 the EEG levy is 0 ¢, with renewable subsidies now coming from the federal budget.)

  • Other minor charges like the Interruptible load surcharge (for demand-side management) have also been set to zero since 2022.

For commercial and industrial customers, the price structure is similar in concept but can differ in level and exemptions. Small businesses and commercial users on standard tariffs pay prices comparable to households (including the same components and 19% VAT, which businesses can later recover as input tax). However, larger industrial consumers often benefit from significant reliefs and procure power more directly. Many energy-intensive industries are partially or fully exempt from certain surcharges and pay lower network fees (or have special contracts), and they do not pay VAT on business use. For instance, the average electricity price for small-to-midsize industrial enterprises in new contracts was about 18.3 ¢/kWh (net) in 2025 (including electricity tax but excluding VAT). Major industrial manufacturers with heavy usage typically pay even less – they can receive reductions or exemptions on the policy levies (KWKG, §19 etc.), qualify for the minimum electricity tax rate, and often source electricity at wholesale market prices. These factors can bring effective power prices for the largest industrial users into the single-digit cents per kWh range, much lower than typical household rates.

Dynamic Electricity Tariffs: Concept and Legal Framework

Dynamic electricity tariffs (also called variable or real-time tariffs) are retail contracts where the price per kWh fluctuates over time, directly reflecting changes in the wholesale electricity market. Unlike conventional fixed-rate plans (which lock in a uniform price for months or years), a dynamic tariff passes hourly market price signals through to consumers. In practice, the energy component of the price is tied to the day-ahead power exchange prices (usually the EPEX Spot market) for each hour of the day. Suppliers purchase energy for the customer on the spot market, and the tariff price for a given hour is based on the corresponding hourly market rate (plus a small supplier fee). This means electricity becomes cheaper at times of high supply or low demand, but more expensive during peaks – mirroring wholesale price spikes and dips. Customers on a dynamic plan are typically notified of the next day’s hour-by-hour prices in advance (e.g. via a smartphone app or web portal) once the market clears each day. This allows them to plan and shift heavy usage (such as EV charging, heating, appliances) to periods of lower prices – for example, overnight or midday when plentiful solar is on the grid – to save on costs. Because the rate adjusts to market conditions, risk premiums that suppliers normally add into fixed tariffs (to hedge against price volatility) are eliminated, potentially making dynamic rates cheaper on average over time (provided the customer can avoid consumption during price spikes). It’s important to note, however, that even when the exchange price drops to zero or negative (during oversupply), the consumer will still pay a few cents per kWh reflecting the non-energy charges (taxes, grid fees) which are still applied. In other words, only the energy portion of the price is dynamic; network tariffs and most levies remain fixed in the bill and continue to be charged regardless of energy price fluctuations.

Relation to EPEX Spot: The EPEX Spot exchange is the short-term power market for central Europe where electricity for each hour (or 15-minute interval) is traded a day in advance. Dynamic retail tariffs are typically indexed to the day-ahead market prices on EPEX Spot. For example, if the EPEX Spot price for 3:00–4:00 AM tomorrow is €20/MWh (2 ¢/kWh) and for 7:00–8:00 PM is €200/MWh (20 ¢/kWh), a dynamic tariff customer would see low pricing in the early morning and high pricing in the evening reflecting those wholesale rates (plus retail markup and taxes). Starting June 2025, the EPEX Spot day-ahead auction will even operate at 15-minute granularity (rather than hourly), meaning dynamic tariffs can in theory follow quarter-hour price blocks. (Initially, most offers use hourly pricing, as smart meters and billing systems commonly aggregate on an hourly basis.) The overall goal is that by exposing consumers to true market prices, dynamic tariffs encourage load flexibility: households and businesses can respond to price signals by increasing usage when power is abundant/cheap (e.g. a windy night or sunny midday) and conserving when it’s scarce/expensive – aiding grid stability and integrating renewables.

Enabling technology – Smart Meters: To use a dynamic tariff, a customer must have an intelligent meter that can measure consumption in fine intervals and report it for billing. In Germany this means an “intelligentes Messsystem” (smart meter with communication) capable of recording at least 15-minute or hourly usage and transmitting data to the provider. Traditional analog or basic digital meters cannot support dynamic pricing because they only register total kWh without time breakdown. The German smart meter rollout is underway, and as of 2025 all consumers with annual usage >6,000 kWh are scheduled to receive smart metering systems (smaller users get at least a digital meter). Indeed, starting in 2025 every household has the right to request a smart meter installation. The presence of a communicating meter is crucial – it sends the detailed consumption profile so that each hour’s (or quarter-hour’s) usage can be billed at the correct spot price. The meter data infrastructure is governed by the Messstellenbetriebsgesetz (Metering Act) to ensure data privacy and security. Providers typically pair the dynamic tariff with a smartphone app or online dashboard that shows the user’s real-time consumption and upcoming prices, helping them optimize usage.

Legal framework: As of January 2025, German law requires all electricity suppliers to offer at least one dynamic price tariff for customers with a smart meter. This mandate came from the EU Electricity Market Directive (2019/944) and was implemented in Germany through the 2023 “Gesetz zum Neustart der Digitalisierung der Energiewende” (Law for the Restart of the Digital Energy Transition). The law defines a dynamischer Stromtarif as a contract where prices reflect daily hourly market rates. In practical terms, any power retailer – whether a big utility or a local Stadtwerk – must have a dynamic offering by 2025 that pegs its energy price to the daily spot prices on the exchange. This regulatory push is meant to empower consumers to benefit from price fluctuations and to incentivize demand-side flexibility as Germany integrates more intermittent renewable energy. The Bundesnetzagentur (BNetzA) oversees compliance; consumers can now ask their supplier for a dynamic tariff option. It’s worth noting that during the energy crisis of 2022–2023, dynamic tariffs were relatively niche, but the new rules have rapidly expanded their availability. By early 2025, the majority of utility companies (including default regional providers) had introduced dynamic tariffs in their lineup. Government and regulators have also ensured that consumers on dynamic rates are still protected by general price transparency and that they can switch tariffs if desired, as these contracts are typically no longer-term fixed price guarantees but often have flexible terms (e.g. monthly cancellable). Overall, dynamic pricing is now an established (and legally supported) part of the German retail electricity market in 2025, offering savvy consumers a chance to reduce bills by timing their usage, while also contributing to grid efficiency and renewable integration.

Major Providers Offering Dynamic Tariffs in Germany

Thanks to the 2025 mandate, almost all large electricity suppliers in Germany have introduced a dynamic tariff for customers with smart meters. Below is a list of notable providers and their dynamic tariff products (often marketed as green power plans), along with key features or conditions:

• E.ON – ÖkoStrom Home & Drive Dynamic: A 100% renewable energy tariff with hourly prices linked to the EPEX Spot market. Aimed at households (the “Home” portion) and electric vehicle owners (“Drive”), it allows EV charging and home usage to take advantage of low hourly rates. Prices vary each hour based on wholesale cost; E.ON provides an app for tracking next-day rates. Requires an installed smart meter.
• EnBW – EnBW Strom Dynamisch: The dynamic tariff from EnBW (a large utility in Baden-Württemberg) with hourly spot price pass-through. It uses 100% green electricity and is managed via the “EnBW zuhause+” energy app. EnBW emphasizes this tariff for electric car charging and heat pump use – their app’s Energy Manager can automate appliances (like scheduling an EV wallbox to charge in low-price hours). The tariff has a monthly base fee (~€17–18) and no long-term contract lock-in (monthly cancellation possible). Smart meter is required.
• Vattenfall – ÖkoStrom Dynamik: A dynamic pricing plan from Vattenfall (serving Berlin/Hamburg areas), providing 100% renewable power with rates that fluctuate hourly according to EPEX Spot. Vattenfall’s offering includes tools for customers to monitor prices and their consumption. Standard grid fees and taxes apply on top of the market-based energy price. Contract is flexible; requires a smart meter installation.
• EWE – Zuhause+ Grünstrom 12 (dynamisch): The northern Germany utility EWE offers this 12-month green dynamic tariff. It pegs the kWh price to wholesale markets, updating frequently (typically each hour). “Grünstrom” signifies 100% green electricity. The “12” may indicate an annual plan or pricing formula, but the rate itself varies with market prices. Customers must have a smart meter, and EWE provides an online portal to view and anticipate price changes.
• Entega – Dynamischer Stromtarif: Entega (a regional provider in Hesse/Rhine-Main) has a simply-named dynamic power tariff offering renewable electricity at variable spot market rates. Entega’s dynamic plan is one of the new tariffs introduced by local/regional Stadtwerke in response to the 2025 requirement. It likely features hourly pricing with a fixed basic fee and can be canceled on short notice. Smart meter required.
• Eprimo – PrimaKlima Pur Dynamic: Eprimo (an E.ON subsidiary brand focused on affordable green energy) launched this dynamic tariff for price-conscious consumers. It provides 100% eco-power (“PrimaKlima Pur” indicates a green product) with a variable price that tracks the wholesale market. Eprimo’s dynamic tariff is marketed online nationwide, with no fixed term and a relatively low base charge; it leverages an app/portal for price info. A smart meter is needed to participate.
• GASAG – Strom Flex: GASAG (a Berlin-based energy supplier) offers Flex as a dynamic electricity tariff. The price per kWh is indexed to hourly market prices, allowing Berlin-area customers to benefit from off-peak rates. GASAG provides this under its portfolio of “flexible” energy solutions. The tariff uses renewable power and is available to anyone with a digital smart meter.
• LichtBlick – ÖkoStrom Vario: LichtBlick, one of Germany’s largest green energy providers, has a dynamic tariff called “Vario”. It supplies certified renewable electricity with a variable rate that changes each hour. LichtBlick’s offering integrates with their app “LichtBlick Energy Manager” which helps customers shift usage to cheaper periods. The contract is monthly cancellable. Smart meter required for hourly billing.
• Naturstrom – naturstrom flex: Naturstrom (a pioneering green utility cooperative) provides flex, a dynamic pricing option for its customers. Like others, it passes through wholesale price fluctuations and is sourced from 100% renewables. A key feature is the integration with home energy management systems – Naturstrom often targets solar PV owners and eco-conscious users who can adjust demand. Requires smart metering; no long-term commitment.
• Green Planet Energy – Ökostrom Flex: Green Planet Energy (formerly Greenpeace Energy) has its Flex tariff, offering members and customers variable pricing on green power. The tariff follows hourly market prices and encourages using electricity when plenty of wind/solar is on the grid. As a cooperative, Green Planet frames this as advancing the energy transition. Smart meter needed; contract terms are flexible.
• aWATTar – Hourly (and Hourly-Cap): aWATTar is a specialist company that was among the first to offer hourly dynamic tariffs in Germany. Their “Hourly” plan pegs each hour’s price to the EPEX Spot day-ahead price plus a fixed retailer fee. They also introduced Hourly-Cap, which is similar but with a price cap mechanism (protecting against extreme spikes by capping the max rate in exchange for a slightly higher base fee). aWATTar supplies 100% renewable energy and operates entirely via a digital platform/app. Contracts are flexible (monthly cancellation). This was a pioneering service that demonstrated the viability of “Strom zum Börsenpreis” (power at exchange price) even before it became mainstream.
• Tibber – Tibber Strom (dynamischer Stromtarif): Tibber is a Nordic-origin energy startup that offers a fully app-based dynamic tariff. Tibber’s model charges the live market price for power with no mark-up per kWh, instead billing a fixed monthly platform fee. Customers get 100% renewable electricity and a smart app that provides real-time insights, push notifications for high/low price periods, and even home automation integration. The tariff has no fixed contract term (you can leave with 14 days’ notice). Tibber has been praised for its user-friendly interface and is expanding its German customer base rapidly as smart meters roll out.
• Octopus Energy Germany – Octopus Go and Octopus Heat: Octopus Energy (a UK-based retailer now in Germany) offers dynamic tariffs tailored to specific use-cases. Octopus Go is designed for EV owners, providing very cheap rates during a nightly off-peak window (e.g. a 4-hour low-price period each night for charging) and dynamic pricing at other times. Octopus Heat similarly targets heat pump users, with variable rates that encourage running heat pumps when electricity is plentiful. Both products use renewable power and Octopus’s proprietary tech platform (with smartphone control and automation options). They require a smart meter and come with flexible terms; Octopus leverages its experience from the UK’s dynamic pricing (e.g. the Agile tariff) to optimize these offerings in Germany.
• Ostrom – Dynamischer Smart Meter Tarif: Ostrom is a Berlin-based startup power provider focusing on simplicity and transparency. Their dynamic tariff is a single plan where customers with a smart meter pay spot-indexed prices each month. Ostrom’s platform has a bilingual app and no-frills pricing (they often advertise a flat monthly fee and wholesale cost pass-through). It’s a straightforward option for those who want a budget-friendly, tech-savvy electricity service.
• Polarstern – Ökostrom Flex: Polarstern, a Munich-based green energy company, also launched a Flex dynamic tariff. It provides 100% renewable energy on an hourly varying price. Polarstern integrates the tariff with their offerings for PV homeowners and renters, encouraging users to align consumption with times of renewable generation. The terms are consumer-friendly (short cancellation period, price transparency). Smart meter is required for billing.
• Other Notable Entrants: Several other innovative or niche providers have dynamic tariffs as well. For example, Rabot Charge offers rabot.charge (a dynamic tariff optimized for electric car charging, with smart scheduling). 1˙komma5° (a clean-tech company) has Dynamic Pulse, combining home solar/battery integration with dynamic pricing. Even some municipal utilities (Stadtwerke) introduced unique variants – e.g. Stadtwerke Villingen-Schwenningen’s Naturstrom live tariff updates its price monthly based on last-month’s spot average (a stepping stone toward fully hourly pricing). By 2025, virtually all regional default suppliers have some dynamic or flexible tariff in their portfolio, so consumers across Germany can opt into market-based pricing.

Overall, the German electricity market in 2025 features a diverse energy mix led by renewables, a retail price composed of multiple regulated and policy-driven elements, and a growing embrace of dynamic tariffs. Supported by smart meters and legal mandates, dynamic pricing is unlocking new ways for consumers to engage with the electricity system – from saving money through load shifting to using greener power when it’s abundant. The combination of high renewable penetration and dynamic demand-side response is a central theme in Germany’s ongoing Energiewende (energy transition).

Peak and Off-Peak Hours

Germany 2024 – Average Hourly Wholesale Electricity Price (EPEX)

Interpreting the chart

What the twin peaks tell us

Why the midday dip is deeper than the overnight hours

* Grid‑scale and rooftop PV feed large volumes of near‑zero‑marginal‑cost electricity between 12 h and 15 h. * Industrial processes that can flex consumption increasingly shift to midday. * At night, PV is absent and a larger share of dispatchable plants (gas, coal, biomass) still run to cover base load and provide system services, setting a higher floor price (≈ 0.075–0.087 €/kWh).

Implications

Bottom line: The chart’s two pronounced peaks are classic “duck‑curve” behaviour in a solar‑rich system: demand crests in the morning and, more sharply, in the early evening when solar falls away. Midday now offers the cheapest electricity on average, making it the ideal window for flexible consumption.