Pay-back time: Increasing electricity prices and decreasing costs make renewable energy competitive

Taimyra Batz Liñeiro and Felix Müsgens

Energy Policy, 2025, vol. 199, issue C

Abstract: The global energy transition needs a large-scale rollout of electricity generation from renewable energy sources (RES). Leading nations such as Spain, Japan, and Germany have invested early and substantially in RES. This leadership has been associated with high expenditures, but the trend is reversing as RES become more competitive. First, levelized costs of electricity for RES have decreased significantly and second, wholesale prices for electricity have increased, due to more ambitious climate protection and rising fuel prices.

Keywords: Energy transition; Renewable energy; RES act; Germany (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:199:y:2025:i:c:s0301421525000308

DOI: 10.1016/j.enpol.2025.114523

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