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As Europe faces an energy crisis amid volatile fossil fuel markets, investments in renewables have proved vital to shielding consumers and businesses from the worst price hikes. <\/p>\n
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Since 2019, Spain has doubled its wind and solar capacity, adding over 40 GW – more than any other EU country except Germany, whose power market is twice the size of Spain\u2019s.<\/p>\n
As a result, Spain\u2019s electricity price<\/a> is much less influenced by the ever-fluctuating cost of gas, which increased by 55 per cent the day after the Iran war<\/a> started and has continued to fluctuate.<\/p>\n In the UK, wind power has helped break a new renewable record. On 26 March, British wind energy generation hit a new high of 23,880 megawatts, enough power to cover 23 million homes.<\/p>\n An analysis by SolarPower Europe found that harnessing sunlight for energy has saved Europe more than \u20ac100 million per day<\/a> since 1 March, resulting in total savings of more than \u20ac3 billion. <\/p>\n If gas prices remain high, experts say that total savings in 2026 could reach as much as \u20ac67.5 billion.<\/p>\n Now, a new report has found that electricity was made on average almost 25 per cent cheaper in some European countries between 2023 and 2025, thanks to renewables.<\/p>\n Wind and solar can reduce Europe\u2019s exposure to fossil fuel shocks<\/p>\n \u201cA growing literature shows the role that renewable energy plays in displacing high-cost fossil fuel generation out of the electricity mix, and, in that way, exerting downward pressure on wholesale electricity prices,\u201d Positive Money, an advocacy group that campaigns for monetary reform, writes in its report. <\/p>\n The organisation found that the expansion of renewable generation reduced electricity prices<\/a> by an average of 24.2 per cent over the 2023-2025 period in the 19 countries analysed. <\/p>\n Data also shows that price impacts grow stronger when more renewables come online.<\/p>\n However, the decoupling of electricity prices from gas prices remains at an early stage in many European electricity systems. <\/p>\n \u201cOur findings therefore underline the importance of wind and solar deployment, which, together with flexibility resources, can largely reduce Europe\u2019s electricity markets\u2019 exposure to fossil fuel shocks<\/a>,\u201d the group writes. <\/p>\n \u201cBy doing so, this process makes the electrification of the economy more attractive, further reducing Europe\u2019s vulnerability to fossil fuels.\u201d<\/p>\n \u2018An opportunity to reduce Europe\u2019s vulnerability\u2019<\/p>\n Positive Money says there are two key policy implications that follow from their findings. <\/p>\n