German Gas Demand Drops in 2018

German gas consumption fell 1.6% year on year in 2018, a report released March 27 revealed.

The annual release from Arbeitsgemeinschaft Energiebilanzen (AG Energiebilanzen) Energy Balances Group – an industry association – showed that overall energy consumption also fell last year, by 3.5%. Significantly higher energy prices, mild weather, and a strong increase in energy productivity were behind the drop. On the other hand, cnsumption-increasing factors such as economic development and population growth took a back seat, the report added.

Natural gas consumption fell 1.6% year on year to 3,071 PJ, or 104.8mn metric tons (mt) of coal equivalent. The main reason for the decline was lower demand for heating purposes, as 2018 was around 7.5% warmer than the previous year and 12.3% milder than the long-term average. Declining production in the chemical industry also affected consumption, while the use of gas to generate power also fell.

Gas was not the only fossil fuel to struggle. Oil consumption fell 5% through the year, while coal saw demand drop 11.2%. Germany is pushing to phase out its nuclear fleet, but output only decreased by 0.4% last year.

However, renewables are gaining ground. Solar energy use grew by 16.5% in 2018; wind power also registered a record year as it increased its contribution to the energy balance by 5.6%. As a consequence, energy-related CO2 emissions in Germany in 2018 look likely to fall by around 34mn mt, the report noted, or 4.8% lower compared with 2017.