German gas-fired generation fell by 27 per over the last year according to figures from the National Association of Energy and Water (BDEW).
High gas prices in 2012 have led many generators to switch to cheaper coal and rely on more renewables in their power mix.
Both hard coal and lignite-fired coal plants accounted for almost 44 per cent of the country's total power demand, up around 1.5 per cent on 2011.
Renewables continued to grow in importance as an energy source during 2012, with the combined share of wind, solar and biomass rising to 21.9 per cent, compared to 20.3 per cent in 2011.
Once taking account of plants with combined heat and power (CHP) and district heating plants, figures show a fall of only 14 per cent.
"This development in the use of gas-fired power plants illustrates the critical economic situation in which operators of gas-fired power plants find themselves," said Hildegard Müller, Chairman of the BDEW the Executive Board, in Berlin.