Dynamics and Drivers of Global Electricity Prices: Market Mechanisms, Policy Impacts, and Future Trends

This paper examines the dynamics and drivers of global electricity prices, focusing on the interplay between market mechanisms, policy impacts, and technological advancements. The study analyses various market structures and explores how renewable energy integration, decarbonisation policies, and technological innovations influence electricity pricing across different regions. The paper also investigates the role of carbon pricing and subsidies in shaping the future landscape of electricity markets, considering the implications for energy security, environmental sustainability, and economic stability. Through a comparative analysis of regional markets and projections of future price trends, this study provides insights into the potential trajectories of global electricity prices and the challenges and opportunities posed by the ongoing energy transition.