Favorable Conditions Allow Accelerating the Renewabe Energy Transition

Wolf-Peter Schill, Nicolas Aichner and Alexander Roth

DIW Weekly Report, 2026, vol. 16, issue 3, 13-22

Abstract: Germany’s current government is planning to realign its energy transition. Against this backdrop, this report provides an overview of current developments in key technologies and indicators for flexibility in the electricity sector. For photovoltaics, growth appears to be leveling off, especially for rooftop installations. Onshore wind power continues to lag its target path, but this gap could close by 2028 if all presently approved projects are fully implemented. Electromobility continues to develop slowly, while progress is also sluggish for heat pumps and electrolysis. Finally, the development of storage facilities and other flexibility technologies has progressed more slowly than the expansion of renewable electricity generation. However, policymakers should not slow the expansion of renewables, rather should maintain the pace. In doing so, they can benefit from significantly improved conditions. Sector coupling should be greatly accelerated, whereby a clear commitment to available, efficient, and scalable technologies, such as battery vehicles and heat pumps, appears to be more effective than a technology-neutral model. At the same time, these technologies should operate as flexibly as possible and in line with electricity market prices.

Keywords: energy transition; renewable energy; solar PV; wind power; electric vehicles; heat pumps; hydrogen; storage (search for similar items in EconPapers)
JEL-codes: Q41 Q42 Q48 (search for similar items in EconPapers)
Date: 2026
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