Energy Transition Monitor: Momentum Is Still Insufficient for the Expansion of Renewables, Electrification, and Storage

Wolf-Peter Schill

DIW Weekly Report, 2026, vol. 16, issue 30/31, 231-239

Abstract: Electricity generation from solar and wind energy is set to expand massively in Germany in order to replace fossil fuels through electrification across all sectors. The DIW Energy Transition Monitor paints a mixed picture for the first half of 2026: Renewable energy is expanding, but must be accelerated further to meet 2030 targets. This includes photovoltaics: Despite earlier successes, it is currently falling short of its rising targets. The heating transition is progressing slowly, with many new gas heating systems still being installed. The share of newly registered electric vehicles has continued to rise for both passenger cars and commercial vehicles compared to the second half of 2025. However, their shares of the total fleets remain low. In the electricity sector, the need for flexibility is growing, as indicated by the trend in wholesale prices. The expansion of large-scale battery storage has shown positive development. The number of new installations nearly doubled in the first half of 2026. The conditions for accelerating the pace of the energy transition remain very favorable across all technologies. Policymakers should capitalize on this and, in particular, set the course for faster electrification—not least to reduce dependence on fossil fuel imports.

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