Researchers reveal surprising financial twist tied to new energy rollout: 'We had underestimated the financial impact'

Researchers reveal surprising financial twist tied to new energy rollout: ‘We had underestimated the financial impact’

March 29, 2025

Your electric bill might be more stable in the future than you think. A new study from the University of Cambridge predicts that meeting green-energy goals could have an unexpected benefit: fewer price spikes and more predictable costs for households across Europe.

The study, published in the Nature Energy journal, projects that countries that meet renewable energy targets could see fewer price swings and lower electricity bills by 2030.

A reduced dependence on natural gas — a fuel source highly sensitive to market shifts — and expanded wind and solar power, which offer more price stability, were cited as key reasons for the projection.

What is the connection between renewable energy and electricity prices?

Unlike natural gas, which is affected by supply disruptions and geopolitical events, renewable energy sources are more stable, even when accounting for fluctuations in weather.

The Cambridge study analyzed energy markets in 29 European countries and found that increasing reliance on renewable energy would significantly reduce price fluctuations, especially in nations that rely heavily on natural gas.

Why is renewable energy important?

Recent energy price spikes have made electricity costs a growing concern. Gas shortages, worsened by events like the war in Ukraine, have sent energy prices soaring. While switching to renewable energy requires investment, it could mean fewer surprises on your monthly bill.

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Meeting renewable energy targets could lower electricity price volatility across Europe by 20% on average, according to the study. Some countries would see even greater benefits.

The analysis found that price spikes in the U.K. and Ireland could drop by 44% and 43%, respectively, while Germany and Belgium could see reductions of 31% and 33%.

“The volatility of energy prices is a major cause of damage to national economies,” explained Professor Laura Diaz Anadon, lead author of the study. “Consumers are still reeling from sharp increases in electricity prices brought about by natural gas shortages following Russia’s invasion of Ukraine. We show that hitting renewables targets reduces the likelihood of such price spikes in the future.”

Does renewable energy have other benefits?

Stabilizing electricity prices is just one benefit of expanding renewable energy. Investing in wind and solar also reduces reliance on imported dirty fuels, strengthening economic resilience. The study found that if Europe “exceeds its renewable energy goals by 30%, electricity prices could become 50% less sensitive” to gas market fluctuations. However, expanding renewables too quickly could lead to diminishing returns, requiring careful planning.

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Renewable energy isn’t just about sustainability. It’s also about protecting consumers from unpredictable costs. While the transition requires upfront investment, the alternative — continued dependence on dirty fuels — could mean more price volatility and higher bills.

“Meeting renewable energy targets is not only good for carbon neutrality, but it also strengthens economic resilience,” shared Daniel Navia, a researcher at the University of Cambridge’s Center for Environment, Energy, and Natural Resource Governance. “We had underestimated the financial impact of energy price shocks, and the last crisis has been a stark reminder.”

For consumers, the message is clear: Investing in renewable energy doesn’t just help the planet — it could also make your electric bill more predictable and manageable.