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All around the world, the race to net zero is picking up speed. Governments are rolling out ambitious targets, investors are pouring money into renewables, and entire industries are being reshaped in the name of cutting emissions.
The urgency is real, but moving too fast comes with its own set of problems. When countries rush headlong into renewables without building the infrastructure to back them up, the risks become clear: blackouts when the wind does not blow, price spikes when demand outpaces supply, and economies scrambling for backup power.
Across the globe, there are already examples of how a hasty transition can backfire and why balance matters as much as speed.
Germany’s green gamble
Germany, long seen as a champion of renewable energy (RE), faced a setback in early 2025, when weak winds and low river levels hit power generation. Wind, the country’s main renewable source, plunged 33% from January to April, while hydropower fell 29% after a dry winter. Solar rose sharply by 39%, yet overall RE production still slid 14%, leaving the grid short of nearly 14 terawatt-hours (TWh) and underscoring the risks of relying heavily on weather-driven energy.
To meet demand, the country revived idle plants and leaned on imports, sending energy prices soaring to almost €1,000/MWh, over ten times the usual average. The shortfall pushed coal generation up 18% and gas by nearly 14%, driving fossil fuels to their highest share of the energy mix since 2018.
Recently, the German Chambers of Industry and Commerce (DIHK) warned that its energy transition could carry a staggering price tag of €5.4 trillion by 2049, raising concerns over the strain on households and industry. Despite the rapid expansion of wind and solar, the country’s power costs remain among Europe’s highest, leaving consumers shouldering the burden. Grid upgrades needed to support renewable growth are expected to drive expenses even higher in the years ahead.
Chancellor Friedrich Merz signaled a retreat from Germany’s ambitious renewable rollout, stating, “My guess is that we can do a little less in terms of expansion. And that will, of course, trigger significant changes in costs.” Economy Minister Katherina Reiche backed a more cautious pace, stressing the need to “better align” renewable growth with grid expansion. She blamed soaring grid fees on “a completely unrealistic, completely exaggerated renewable energy target.”
Lance D. Johnson of Climate News noted that Germany’s energy missteps highlight the importance of adopting balanced and pragmatic policies. “The country’s overzealous pursuit of renewables, combined with the hasty abandonment of nuclear power, has created a perfect storm of economic decline, environmental degradation, and geopolitical tension,” he wrote.
Spain: Too much sun, not enough stability
In 2025, Spain reached a milestone in its energy transition, with renewables supplying over half of the country’s electricity. Solar photovoltaic power led the surge, accounting for a quarter of total generation, while wind and hydropower provided notable shares. Together, renewables delivered 13,871 gigawatt-hours (GWh), representing 55.1% of the national mix.
But that fast expansion has exposed vulnerabilities. On April 28, a massive blackout spread across Spain and Portugal after technical faults, oscillations in the grid linked to a large photovoltaic plant in Badajoz, and failures to properly stabilize voltage.
Additionally, the Baker Institute for Public Policy pointed out that in grids dominated by renewables, key stabilizing services like frequency control and inertia are in short supply. Unlike conventional plants, which steady the grid through rotating machinery, solar and wind rely on inverters that depend on an already stable system.
On the day of the blackout, with solar dominating and few conventional plants online, the Iberian grid lacked the resilience to absorb sudden shocks. As Baker Institute’s Raul Bajo Buenestado explained, “the system lacked the inertia needed to absorb the initial generation-loss shocks,” triggering automatic protections and cascading outages.
Finally, structural issues like limited interconnection with neighboring grids are adding pressure. According to the International Energy Agency (IEA), Spain has a low cross-border interconnection rate, with just 2.8 GW of capacity with France—about 2.8% of its installed power, well below EU targets. Interconnection with Portugal stands at 2.3 GW (2.3%).
China’s renewables boom hits limits
China’s record-breaking buildout of wind and solar is running up against a hard limit in its grid.
In the first half of 2025, curtailment rates, or electricity that never reached consumers, rose to 5.7% for solar and 6.6% for wind, nearly double last year’s levels. The problem lies in transmission bottlenecks, with inland renewable hubs struggling to send surplus output to the country’s eastern cities.
Another challenge is that China’s breakneck clean energy expansion is creating strains even as it sets records. The country installed 277 GW of solar in 2024, and in May 2025 alone, it added more capacity than any other nation achieved in the whole of the previous year.
Meeting this growth requires massive grid upgrades. The State Grid Corporation of China plans to spend more than 650 billion yuan ($90 billion) this year, with ultra-high voltage transmission lines as a key focus of investment.
Furthermore, China’s solar boom is showing signs of strain as overcapacity collides with weakening global demand. With export prices falling and protectionist measures abroad limiting sales, manufacturers have flooded the domestic market, often offering panels at below cost. The result has been a surge in installations far beyond actual energy needs, but profits have collapsed, with industry operating income plunging 200% between 2022 and 2024.
Southeast Asia: Lessons from rushing renewables
The experience of countries that raced headlong into renewables has not been lost on Southeast Asia. A new survey by the Sustainable Energy Association of Singapore (SEAS) suggests the region is taking those lessons to heart, with investors showing greater caution in how the transition is managed.
Southeast Asian investors are increasingly prioritizing the basics, with grid upgrades (41.9%) and energy storage (65.7%) taking precedence over a headlong rush into new projects. Two-thirds of respondents also called for stronger cross-border coordination frameworks to guard against supply chain disruptions, recognizing that energy security must advance in tandem with decarbonization.
While renewable capacity is growing, it is constrained by outdated grids, regulatory uncertainty, and weak investment signals. Nearly three-quarters of respondents cited ageing and fragmented networks as the biggest roadblock, while 67% pointed to unstable regulations and 56% flagged financing gaps.
The overall picture is less about chasing headline targets and more about building resilience first—a pragmatic shift shaped by the hard lessons of those who moved too quickly. The challenge now is to strike a balance: move fast enough to meet climate goals, but steady enough to keep the lights on.
Sources:
https://www.iea.org/data-and-statistics/data-tools/monthly-electricity-statistics
https://www.climate.news/2025-01-04-germanys-green-energy-dream-turns-into-nightmare.html
https://www.renewableinstitute.org/spain-renewables-top-55-of-power-in-july-solar-pv-leads
https://energy.ec.europa.eu/topics/infrastructure/electricity-interconnection-targets_en
https://www.iea.org/articles/spain-electricity-security-policy
https://www.bruegel.org/analysis/china-can-decarbonise-world-even-wont-fix-its-overcapacity-problem