Renewables reduce and stabilise electricity price

19.10.2021

18.5 billion cost savings in just three months from wind power, PV, biomass and hydropower

There is currently a lot of discussion about high energy prices. In this year's third quarter, electricity prices in Europe shot up due to rising raw material and CO2 prices. Because there are few fuel reserves in Europe and demand for electricity increases, Europe's renewable power generation made a significant contribution to electricity supply in July, August and September, while also saving €18.5 billion in costs. "That's over €6 billion saved per month", notes Stefan Moidl, Managing Director of IG Windkraft.

The Centre for Research on Energy and Clean Air (CREA) has just published a recent short study on the subject. In it, they present a calculation on the dampening effect of renewable energies on electricity prices.

"Europe would do well to quickly say goodbye to natural gas, oil and coal and to massively promote the expansion of renewable energies. Austria has been far too hesitant in the past and has let a lot of time pass unnecessarily," remarks Moidl: "With the current energy prices, one can see very clearly how important it is to have renewable energies available also to stabilise electricity prices. The more renewables, the more stable the electricity price."

Right framework conditions are essential

"With the Erneuerbaren Ausbau Gesetz (EAG), this will hopefully change for Austria in the future. The legal framework conditions also need to be looked at again at the European level." Currently, the legal framework conditions such as the Renewable Energy Directive and the Environmental Aid Guideline are being revised. "The focus must be placed much more clearly on the fastest possible expansion of renewables," Moidl demands.

Share of renewables in electricity consumption highest

In the past three months (July to September), renewables have contributed more to electricity production in the EU (36.6 percent share of electricity consumption) than fossil fuels (35.5 percent) or nuclear power (28.4 percent). Compared to the average generation of the last five years, electricity generation with renewables was even 11 percent higher in the last three months. In Austria, almost all (97.1 per cent) of the electricity supply in the last three months was provided by renewable energies.

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