Energy transition 2025: Start-ups – the driving force for green innovation!

Energy transition 2025: Start-ups – the driving force for green innovation!

The role of start-ups in the field of renewable energies is becoming increasingly important for the energy transition in Germany. According to a report by Econews An impressive 1.2 billion euros of risk capital flowed into energy start-ups in 2024, making them the main driver among technology fields. These investments are critical to developing innovative solutions that are both sustainable and affordable.

A study by Fraunhofer FFB and the University of Münster analyzed the success factors and barriers for start-ups in the energy sector. The researchers examined over 2,600 scientific publications and created an overview of 142 relevant papers. Three main types of start-ups were identified: technology-oriented, community-based and rural start-ups. This diversity shows the wide range of approaches that can contribute to the energy transition.

Innovations and challenges

Technology start-ups are particularly active in developing innovative energy solutions, including battery recycling and AI-powered grid control. Community initiatives promote local energy transition, while rural start-ups try to improve access to affordable energy in structurally weak regions. Despite these promising approaches, new companies in the industry are confronted with significant market entry barriers and complex structures.

Technical and operational challenges in the energy sector are particularly high, which poses major hurdles for many start-ups. A frequently changing regulatory landscape further complicates market access. Political support and a stable legal framework are therefore essential to increase the chances of success of these companies. Strategic partnerships and adapting business models to local conditions are also key measures for exploiting the potential of start-ups.

Contribution to achieving climate goals

The importance of renewable energies in Germany is also reflected in the current statistics. In 2024, final energy consumption for heat from renewable energies was approximately 197 TWh, a slight increase compared to 2023. The share of renewable energies in total final energy consumption for heating and cooling was 18.1 percent. There was also a small decline in the transport sector, with a share of 7.2 percent, but the sector continues to make a contribution to achieving climate goals.

By using renewable energies, around 256 million tons of greenhouse gas emissions could be avoided in 2024. In the electricity sector in particular, 205 million tons of CO₂ equivalents were saved. Such successes emphasize the need for investments and innovations in the field of renewable energies, which totaled 32.0 billion euros in 2024. This represents a decrease compared to 38.1 billion euros in 2023. However, employment in this sector is increasing to over 406,000 people, an increase of almost 7 percent compared to the previous year and marking the highest level since 2011.

In summary, it can be said that the innovative strength of start-ups in the field of renewable energies will be crucial for the future development of a sustainable energy supply in Germany. Like that Federal Ministry of Economics emphasizes, a differentiated view of different technologies and sectors is necessary in order to effectively achieve the climate goals.