Abstract: The renewable energy in German has developed rapidly in recent years, and the penetration rate of renewable energy generation has increased year by year. This paper presents the energy transformation process in German over the past decade by analyzing various types of power supply installations, power generation, and power generation hours in German. At the same time, this paper carried on studies on the power consumption in German and the electricity exchanges with neighboring countries and electricity prices changing, and analyzed the impact of renewable energy development on German electricity prices. Finally, by analyzing the typical weekly power system operation data, response of German power system to the wind and PV power fluctuation is analyzed. German's renewable energy development and operation experience shows that the optimization of power system and maximization consumption of wind and PV power mainly depends on flexible spot market mechanism of electricity, strong power regulation capability and strong cross-national transmission network. And the development of wind and PV power will have a significant impact on the electricity production costs and electricity prices.