Germany's electricity curtailments drop in 2025, but grid costs stay stubbornly high
Electricity curtailments in Germany fell in 2025, but costs for managing grid congestion remained high. The federal government spent over €3 billion on redispatch measures, with most funds going to fossil-fuel plants. Meanwhile, debates continue over future subsidies and grid expansion plans. In 2025, Saxony-Anhalt saw a drop in electricity curtailments, falling to 470 GWh from 650 GWh the previous year and 800 GWh in 2023. Nationwide, four percent of generated power was curtailed, though the state’s rate stayed at two percent. The cuts happened when wind farms were temporarily disconnected to prevent grid overloads.
The federal government allocated €6.5 billion in subsidies for 2026 to reduce transmission grid fees, using funds from the Climate and Transformation Fund (KTF). However, the future of these subsidies after 2026 is still unclear. Economics Minister Katherina Reiche proposed blocking financial compensation for new renewable projects in congested areas for a decade, a plan criticised by Saxony-Anhalt’s Energy Minister, Prof. Dr. Armin Willingmann. Willingmann called for faster grid expansion to cut curtailments in the coming years. He also opposed Reiche’s proposal, warning it would create uncertainty for renewable energy growth. Consumers currently cover curtailment costs through higher grid fees.
The 2025 figures show a decline in curtailments, but grid congestion remains a costly issue. With €3.07 billion spent on redispatch—mostly for fossil-fuel plants—the debate over subsidies and expansion continues. The outcome will shape future energy costs and renewable development.
