Germany: Wind power firms face millions in losses as wind speed drops to 50-year low

In many ways, Germany’s wind power revolution has been a success, with wind power serving as the country’s largest source of electricity. However, the current wind lull over the last three months has led to an extreme dip in energy production, which is costing firms millions in losses.

The wind speed average has dropped below less than 5.5 meters per second in the first quarter of 2025, according to German Meteorological Service (DWD). The last time the country saw such low speeds was in 1972 and 1973, and before that, in 1963.

Wind energy producers have been hit hard. For example, PNE, a wind farm operator in Coxhaven, showed revenue dropped to €27.9 million from €31.4 million the previous year, but perhaps more importantly, it went from an operating profit of €1.1 million in the first quarter to a loss of €7.1 million, according to Welt.

The company indicated that there was 31 percent less electricity generated nationwide in the first quarter of the year than in the same period last year, according to data from the German Energy and Water Industry Association (BDEW).

However, it should be noted that April 2024 and 2022 saw much higher wind speeds than previous years, so comparing 2024 to 2025 makes this drop look even more extreme. Experts say there is no evidence of climate change being at work, noting that previous decades have had similar lulls in wind speed.

Germany experienced so-called “dark lulls” over the winter, featuring little sunlight and low wind speed, which led to extremely high prices. Germany imported energy from neighboring countries and turned to conventional power plants in response.

Former Economic Minister Robert Habeck of the Greens had already planned to provide incentives to build 40 large gas-fired plants by 2030 to deal with fluctuations in wind and solar energy. These gas plants had a number of climate protections allegedly built in, such as being able to be switched to hydrogen at some point in the future.

The grid is also at risk due to renewable energy in some instances, especially during holidays when there is less power demand. Solar power cannot be regulated by grid operators, which means that when there is too much electricity and not enough sources that need it, the grid is pushed to its limit. The previous German government, at the urging of grid operators, implemented the PV Peak Act to deal with surplus solar power production.

The average share of solar power energy in 2023 was 31.5 percent, with coal-fired plants in second, at 22.5 percent.

Renewables make up an increasingly large share of Germany’s energy profile, which supporters say reduces reliance on foreign countries such as Russia while also reducing carbon emissions. Critics, on the other hand, say wind power has harmed energy security and also presents a number of environmental risks to wildlife and even forests.

However, it is not just countries like Germany turning to renewables. Conservative governments, including Hungary’s, are also increasingly shifting to wind and especially solar, where it is one of Europe’s leaders.

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