09-05-2025
Germany's €100bn Green Gamble: Inside The Nation's Bold Climate Investment
Jan Lozek, Managing Partner and Founder of Future Energy Ventures (FEV)
In the race for a net-zero future —Germany's latest €100 billion climate investment package is so large it has been dubbed a "green bombshell." This latest move signals an unwavering commitment to decarbonization in the face of geopolitical and infrastructural challenges.
In a landmark decision backed by the Greens, the German government has secured a massive fund aimed at slashing emissions and accelerating the shift to clean energy. 'This is not just about hitting climate targets — it's about reshaping the entire energy landscape,' says Jan Lozek, founder and managing partner of Future Energy Ventures (FEV), a climate-focused venture capital firm headquartered in Germany.
Germany's position as a global climate leader is well-earned. Germany's Energiewende (energy transition) is one of the most ambitious and closely watched renewable energy transformations globally. Germany has achieved several significant milestones in its shift from fossil fuels and nuclear power to renewables.
In 2023, renewable energy sources accounted for over 50% of Germany's gross electricity consumption for the first time, reaching nearly 52% for the full year. This marked a pivotal moment, as renewables became the dominant source in the national energy mix.
Germany's installed solar photovoltaic (PV) capacity surpassed 100 GW at the start of 2024, a significant leap driven by the addition of over one million new solar systems in 2023 alone. The total number of PV arrays exceeded five million in early 2025. The country aims to more than double solar capacity to 215 GW by 2030.
Wind energy continues to be a cornerstone of Germany's renewable strategy. In 2024, wind power (onshore and offshore) contributed 136.4 TWh, making up about one-third of the total electricity output. Offshore wind saw notable growth, with new large-scale wind farms connected in 2024. Wind power is charging ahead, with a national target of 145 GW by 2030, positioning Germany just behind China and the US in global rankings.
The country is speeding ahead in its Energiewende — the long-term strategy to phase out nuclear and fossil energy. But it's not come without its growing pains: the speed of progress on renewables is now blocked by grid infrastructure constraints.
A worker installs a solar panel at a solar park being built by 'F&S solar service' company near ... More Erftstadt, western Germany on October 22, 2024. The photovoltaic system is being built on an area of around 16 hectares and consists of more than 28,000 modules with an output of 16.4 megawatt (MW). (Photo by Ina FASSBENDER / AFP) (Photo by INA FASSBENDER/AFP via Getty Images)
Lozek, whose firm backs early-stage companies accelerating the energy transition, sees the irony in Germany's current challenge: 'We've scaled renewables at an impressive pace, but the grid hasn't caught up. The infrastructure we're relying on wasn't designed for a decentralised, dynamic energy system.'
Indeed, Germany's ageing power grids, built for centralised coal and gas plants, are struggling to accommodate the unpredictable flow of distributed solar and wind power. The surge in decentralised energy has created 'visibility gaps' for grid operators, leaving them unable to effectively balance supply and demand. The consequences? Surpluses go to waste, and blackouts could loom.
Lozek argues the solution lies in a smarter, more agile system. 'We need to roll out smart meters, decentralised controls, and energy storage solutions that let us manage this new ecosystem in real-time. Local optimisation will be key — not just pouring more power into the grid, but using it where it's produced.'
It's precisely this nexus of innovation and necessity that climate tech investors like Lozek are betting on. FEV, launched in 2016, has grown alongside the sector it champions: 'We back asset-light, scalable software solutions that help decarbonize energy systems,' Lozek explains. 'It's not just about financial returns — it's about building a liveable future.'
Lozek himself embodies the blend of technologist and environmentalist. A veteran of companies like RWE, Innogy, and he has witnessed the shift in the energy landscape from the inside out. 'My journey was always driven by a passion for innovation, tech, and sustainability. When we started FEV, we knew we were entering an era where capital could catalyse climate solutions at scale.'
What kind of companies catch his eye? 'Startups that are tackling the core infrastructure challenges of energy and urban living — energy storage, grid management, smart cities. We're also seeing huge potential in AI and cybersecurity as the energy sector becomes increasingly digital.'
And it's not all about big ideas and polished decks. 'A great pitch isn't about style,' Lozek says. 'It's about authenticity — do they truly understand the problem they're solving? Do they have a strong team?"
Germany's bold move isn't happening in a vacuum. The EU as a whole is targeting a 55% reduction in greenhouse gas emissions by 2030, with billions earmarked for green tech through the Green Deal Industrial Plan. Globally, the world now invests twice as much in clean energy as it does in fossil fuels, with total global energy investment exceeding $3 trillion for the first time in 2024.
But there is still a long road ahead. Despite the surge in renewables, fossil fuels remain embedded in sectors like manufacturing, transport, and agriculture. Lozek sees these as the next frontiers. 'Decarbonizing heavy industry and transitioning to a circular economy — these are massive opportunities. We need scalable solutions that can make a dent in global emissions.'
