BLOG 14- 30 REASONS WHY RENEWABLE ENERGIES (PHOTOVOTLAIC AND WIND) DON’T ALWAYS LOWER ELECTRICITY PRICES

…continued from Blog N°13

26. Policy Uncertainty:

• • Uncertainty in policy and regulatory environments can deter investment and lead to higher costs as investors seek higher returns to compensate for perceived risks.

27. Carbon Pricing and Emissions Trading:

• • Carbon pricing and emissions trading schemes, while intended to reduce emissions, can increase overall energy costs during the transition period.

28. Integration of Distributed Energy Resources:

• • Managing distributed energy resources (e.g., rooftop solar) within the grid adds complexity and costs to grid operations.

29. Learning Curve:

• • While the cost of renewable technologies has been falling, there is still a learning curve, and early adopters often face higher costs that are gradually reduced over time.

30. Economic Externalities:

• • The full cost of transitioning to renewable energy includes externalities that are not always accounted for in simple cost comparisons, such as societal and environmental benefits.

Overall, while renewable energy has many long-term benefits, the transition period involves a complex interplay of factors that can lead to higher electricity prices in the short to medium term.