-- Germany's solar output is set to jump about 31% this summer, cutting gas use and easing LNG demand amid Middle East tensions, according to a Bloomberg analysis on Tuesday.
Solar generation in Europe's largest power market is projected to average about 16.5 gigawatts from April to September, rising roughly 31% over the year, the analysis said, citing BloombergNEF data.
The increase in renewable output is projected to cut gas-fired generation by about 29% over the same period, equivalent to roughly nine liquefied natural gas cargoes, the analysis added.
Germany's solar capacity expansion, with panel installations rising about 15% this year, is driving the surge and helping limit competition with Asian LNG buyers amid geopolitical tensions that are lifting global gas prices, the report added.
Higher solar output is also expected to support Europe's efforts to rebuild depleted gas storage levels ahead of winter, offering additional supply security as the region navigates energy market uncertainty.
Gas-fired output in Germany is expected to drop to about 2.5 GW in July, while coal generation may fall 63% to nearly 3.2 GW between April and September, reflecting rising renewable supply, the analysis said.
Gas will still play a key role in stabilizing Germany's power grid and influencing electricity prices, especially during periods when renewable generation declines, the analysis said.
Germany produced a record 53 GW of solar power last week, covering more than 80% of electricity demand, the analysis added, citing data from consultancy Agora Energiewende.