For years, a narrative has dominated energy policy that promises falling electricity prices as soon as the energy transition gains momentum and renewables dominate the market. However, global comparative data paints a completely different picture. In countries that are particularly aggressive in pursuing their transition projects, electricity prices are consistently rising, driving energy costs to levels that are unheard of internationally. Even regions with long experience in expanding green energy production are not seeing any cost advantages. The narrative does not hold up to reality, although it continues to be politically promoted and, despite the hard data, appears to be rarely revised. (agrarheute: 19.11.25)
Europe as Evidence of a Fragile Narrative
Germany provides the most striking example of rising electricity prices despite the massive expansion of renewable energy. While the transition project produces impressive amounts of green electricity, costs increase in parallel with each new expansion phase. Around 40 cents per kilowatt-hour marks a price level that remains virtually unmatched internationally. Spain follows the same pattern. High feed-in from wind and solar power plants there also creates an environment with significantly higher energy costs. Denmark and the Netherlands also demonstrate that increasing green energy production shares do not provide relief. The correlation between renewables and higher electricity prices is particularly evident in these countries.
In contrast, countries like the USA, with their more moderate share of renewables, charge significantly lower electricity prices. China shows the same trend. Despite increasing green electricity production, the country keeps its energy costs low because the structure of its energy market, thanks to the continuous expansion of coal and nuclear power plants, is not dependent on the weather. Russia, with its extremely low tariffs, is also far below European levels. These price levels are not a matter of chance. They are based on a grid that functions without major weather-related fluctuations and does not need to maintain costly reserves for irregular feed-in.
The Mechanics Behind Rising Prices
The main reason for rising electricity prices in countries with a high share of renewables lies in the volatility of their feed-in. Solar and wind power only generate electricity under suitable weather conditions. This leads to a surplus on sunny or windy days and a drastic drop in production during unfavorable conditions. The period of low wind and solar output during the winter of 2024/2025 demonstrated this particularly starkly. During this extended period of calm winds, electricity generation temporarily dropped below ten percent of demand. It is precisely in such moments that reserve power plants ensure supply. However, they operate only rarely and generate enormous costs because short deployments barely cover the investment sums. These factors drive up electricity prices.
The lack of storage capacity exacerbates the problem. Germany has battery storage systems that can barely cover more than an hour of nationwide consumption. This increases the pressure on conventional power plants, which must be available as backup. Grid expansion also costs a significant amount of money, as fluctuating electricity generation overloads or underutilizes the grid. The combination of these factors explains why a high share of renewables does not lead to lower electricity prices, but rather the opposite. The narrative of inexpensive green electricity crumbles under these fundamental physical and structural constraints.
International Energy Policy Reveals Alternative Models
Other countries are drawing clear conclusions from these mechanisms. China is investing heavily in conventional power plants alongside renewables to combine security of supply with stable prices. Despite ambitious solar targets, India also maintains a strong focus on conventional sources and keeps energy costs low. Bangladesh also keeps its tariffs stable through conventional baseload power. These countries use renewables as a supplement, not as a weather-dependent mainstay. This is precisely how they avoid price shocks that severely impact European countries.
In contrast, Europe demonstrates how a one-sided transition project without sufficient storage, stable baseload power, and marketable reserve capacity affects energy costs. The narrative of cost advantages completely falls apart in international comparison. The data clearly shows that countries with a high share of renewable energy create the most expensive electricity markets, while countries with a balanced energy mix produce significantly more cheaply.