Germany's Energy Demand Plunges Amid High Oil Prices

Germany's energy demand has fallen by 1.9% in the first half of the year due to surging oil and gas prices, according to preliminary data from the Working Group on Energy Balances (AGEB). Oil product consumption dropped by 8%, with diesel consumption down by almost 6%. Gasoline consumption decreased by a more moderate 0.6%, while jet fuel consumption fell by 1% and light heating oil plummeted by over 30%.

The data shows that hydrocarbons accounted for 75.9% of the country's energy consumption, with coal consumption rising by 7%. Natural gas consumption also increased by 1.3%. However, wind and solar generation saw growth in the period, mainly due to a boost in wind power. Wind and solar accounted for 22.2% of overall energy consumption.

The increase in hydrocarbons consumption comes despite Germany's ambitious plans to transition to renewable energy sources. The country aims to reduce its reliance on fossil fuels and meet its target of becoming carbon-neutral by 2050. However, the transition plan has faced obstacles such as wind droughts and transmission capacity limits that require billions in grid expansion investment.