Renewable energies: This is how electricity prices and CO2 emissions will fall by 2030!

Renewable energies: This is how electricity prices and CO2 emissions will fall by 2030!

A lot has happened in the world of renewable energy in recent years, and the latest studies show that this progress could also be beneficial for consumers. A current study by the European Environment Agency (EEA) entitled “Energy in the EU: Trends and Perspectives” highlights that the expansion of wind power and solar power could help to noticeably reduce electricity costs for consumers in the long term. According to the study, variable electricity generation costs in the EU could fall by a staggering 57 percent by 2030 compared to 2023.

The need to meet EU renewable energy and energy efficiency targets is seen as crucial. However, short-term savings could be partially offset by investments in a more flexible electricity grid and national spending. Still, the long-term outlook is bright: consumers could save money through renewable energy while promoting energy independence and the transition to a clean industry.

Renewable energies on the rise

The positive development of renewable energies is also reflected in another study by Agora Energiewende, which deals with the state of the energy transition in Germany. Last year, the share of renewable energies in gross electricity demand rose to an impressive 56 percent. This was supported in part by the record-breaking expansion of photovoltaics at 16 gigawatts and onshore wind energy, which saw new permits of 13 gigawatts. Installed battery capacity also increased to 12 gigawatts, showing that the sector continues to thrive.

Furthermore, a decrease in the average exchange electricity price of almost 20 percent was noted, which is due to the high production from renewable sources and the associated reduced need for conventional electricity generators. For consumers, this means that electricity prices have been reduced over the course of the year, even if they occasionally rise due to dark lulls.

Progress and challenge

Despite these successes, there are also challenges, particularly in the building sector and transport, both of which fall short of the EU's carbon targets. According to the Agora study, Germany missed European climate targets by an estimated 12 million tonnes of CO₂ in 2024, with the majority of emissions coming from these sectors. In particular, when it comes to transport and buildings, an accelerated expansion of the relevant infrastructure is required in order to get closer to the climate goals.

Emissions in the transport sector fell only minimally, while at the same time the heating energy requirement in the building sector fell. The total decline in greenhouse gas emissions of 18 million tons - a historic low - is primarily attributable to positive developments in the energy industry, where over 80 percent of the emissions reductions occurred. Ultimately, it should be noted that when it comes to energy, the future certainly lies in renewable resources.

Given all these developments, it seems as if the energy transition is well on its way. The clear message from the reports is that investing in renewable energy could not only promote a cleaner future, but also save consumers' wallets. The path is clear and it is to be hoped that policymakers will take appropriate action to further drive this positive trend. For more information on the topics of renewable energies and their effects on electricity prices and emissions, see “temagazin” and “[Agora “Energy transition](https://www.agora-energiewende.de/aktuelles/erneuerbare-senken-strompreise-und-emisions- Mangelnde-dynamics-bei-gebaeuden-und-verkehr-1)”.