Impact of Renewable Energy Growth on Electricity Prices–Evidence from European Union

Renewable energy power is widely regarded as having the potential to break through the constraints of the “energy trilemma”, which provides green and clean energy while maintaining safety, stability, and affordability. This study examines changes in the power generation mix in 29 countries (primarily with the European Union) from 2007 to 2020, and explores the impact of renewable energy on national electricity prices and the underlying reasons. The results demonstrate that the share of renewable energy consumption in the power sector and electricity prices exhibit an “N” shaped relationship over a certain period. A large-scale adoption of renewable energy may not necessarily lead to lower electricity prices. Blindly relying on renewable energy cannot break the “energy trilemma”.