Study: Renewable energies
significantly reduce electricity prices
The consistent expansion of wind power, photovoltaics and small-scale hydropower significantly reduces domestic electricity prices throughout the year, at all hours and months – providing significant financial relief for households and industry. At the same time, secure, independent self-sufficiency makes it possible to reduce dependence on fossil gas imports. This is confirmed by a recent analysis by the consulting firm ‘enervis’.
Renewables could reduce electricity prices by 20% by 2030
Without wind power, PV and small-scale hydropower, electricity prices would have been 6% higher on average over the last four years. By 2030, the expansion of renewable energy generation could reduce electricity prices for households even more significantly – by around 20%. The electricity price-reducing effect of wind and solar power occurs throughout the year – particularly noticeable at midday in summer when PV output peaks, but also in the winter months when wind power is at its strongest.
Renewables are replacing expensive fossil fuel power generation
There is a clear reason for the price reduction: renewable energies have extremely low variable costs and thus shape the market price. With each additional plant, the supply of electricity increases and the supply curve shifts towards cheaper electricity prices – keyword: merit order. Fossil fuel power plants – especially imported gas – are thus increasingly being pushed out of the market.
As energy and electricity demand will rise significantly by 2030, without the expansion of renewables, additional gas imports of 1.8 billion m³ would be necessary by 2030 – equivalent to the current total consumption of all Austrian households (2 billion m³). This would drastically increase dependence on fossil fuels and raise electricity prices.
Only the consistent expansion of renewable energy will reduce electricity prices
The study shows in black and white that the most effective method of combating high electricity costs is the consistent expansion of renewables. ‘This scenario – cheaper household electricity prices and immense economic benefits – can only succeed if more and more obstacles are not placed in the way of the expansion of renewables,’ warns IG Windkraft Managing Director Florian Maringer.
Economic benefits by 2030: €3.1 billion
Especially in view of high inflation and economic recession, the economic benefits of renewables are enormous. In the high-price year of 2022, the price-dampening effect on the electricity market was around €1.4 billion. According to the study, PV, wind and small hydropower will generate benefits of up to €1.6 billion annually in 2030 due to lower electricity prices. Adding in the additional revenue from exports brings the total benefit to €3.1 billion.