Germany’s Electricity Market in 2025: Prices, Grids and Flexibility
Updated: 3 days ago
Average day-ahead wholesale electricity prices rose again in Germany in 2025. The year also showed that new generating capacity alone is not enough to deliver the energy transition. Grids, storage and flexible demand need to develop alongside it. For real estate portfolios, this makes the relationship between procurement, consumption profiles and controllable demand increasingly important.
Renewables: Separate Capacity Growth from Output
New capacity additions varied by technology in 2025. Solar additions were slightly below the previous year, while onshore wind additions increased substantially, according to the Bundesnetzagentur’s annual capacity review (in German).
More installed capacity does not automatically translate into a corresponding increase in electricity output. Solar generation fed into the grid rose considerably, while onshore wind output declined. Overall, the renewable share of electricity fed into the public grid increased only slightly.
Grid Constraints: More Solar Curtailment
Higher solar output increased regional demands on electricity transmission. The SMARD review of grid congestion management in 2025 (in German) reports a substantial rise in solar curtailment. However, the total volume of congestion management measures remained almost unchanged, while wind curtailment fell.
Grid-related curtailment differs from periods when exporting electricity is commercially unattractive. The former reflects limited network capacity; the latter reflects market prices. Both highlight the need to coordinate generation, storage and demand.
Price Signals: The Growing Value of Flexibility
The SMARD annual electricity market review (in German) shows a higher average day-ahead price and greater volatility than in 2024. Negative wholesale prices also occurred more frequently. This does not imply that every customer’s costs increased: the supply contract, procurement timing and consumption profile all matter.
The move to 15-minute intervals in European day-ahead trading has enabled more granular price signals since October 2025. Owners able to shift demand should assess whether their technology and supply contracts allow them to benefit from these price differences.
Storage: Assess the Potential at Each Site
Commercial and large-scale battery storage is becoming more important. Falling costs and interest in grid connections highlight its potential to shift renewable electricity across time and capture price differences. Fraunhofer ISE’s annual review (in German) documents the expansion of large-scale battery storage.
For a real estate portfolio, this is not a general investment recommendation. Each project needs to be assessed against its load profile, grid connection, operating model, costs and potential revenues.
Implications for Real Estate Portfolios
The experience of 2025 supports considering energy procurement, flexible loads and storage together. Reliable metering and energy data helps owners assess suitable measures and manage their energy use more effectively.
NeoBid supports property owners, asset managers and property managers in assessing these options for their portfolios and developing an appropriate procurement strategy.
