Electricity price illusion: Study exposes high costs for renewable energies

Electricity price illusion: Study exposes high costs for renewable energies

The energy transition is often propagated with the promise of cheap green electricity, as politicians and the climate lobby often point to the low production costs for energy from wind and sunlight. This should lead to falling electricity prices in the long term, which is seen as hope for consumers. However, a study conducted by a team of researchers led by economist Grimm reveals a flaw in this promise.

According to the study's findings, the calculation for a permanently low electricity price appears to be based on the current price level of wind and solar power. Based on forecasts, it is clear that prices will change as the share of renewable energies in the overall electricity mix increases. This suggests that the assumptions about consistently low electricity generation costs are not accurate and could lead to rising prices in the long term.

The results of the study take a critical look at the previous assumptions about the price development of green electricity in the wake of the energy transition. It is becoming clear that a sustainable and long-term viable energy policy cannot be based solely on supposedly low production costs. Rather, comprehensive analyzes and strategies are required to make the transition to renewable energies economically sensible while at the same time ensuring a stable energy supply.