In 2014, renewable electricity generation increased only slightly. Meanwhile, electricity generation from fossil fuels declined to the lowest value in at least 35 years. However, the change in domestic electricity demand is properly the biggest news.

Power plants located in Germany generate electricity to meet demand from domestic and foreign customers. As you can see in the chart above, German electricity demand peaked in 2007 and has declined ever since demand bounced back after the 2009 recession. Foreign demand (or net electricity exports) on the other hand, has been rising. In recent years so much so, increasing exports have overcompensated the decline in domestic consumption, requiring more electricity to be generated by German power plants.

According to preliminary data released by AG Energiebilanzen (AGEB), domestic electricity demand in 2014 dropped to 576 TWh. This is not only a 23 TWh (or 3.9%) decline compared to the 599 TWh consumed in 2013, but also the lowest consumption since 2000. At the same time, net exports have stagnated, leading to the lowest demand for German power in over a decade. In other words, the market volume for electricity produced in Germany contracted, so somebody had to reduce their output.