Sustainable Energy
Do Renewables Really Push Up Power Prices? What the Data from the US, Europe and India Actually Shows
An extensive analysis of electricity markets across the United States, the European Union, Australia, and India shows that high penetration of wind and solar is not associated with higher power prices
For more than a decade, a familiar argument has echoed through political speeches and policy debates: wind and solar power are unreliable, require costly backup systems, and ultimately make electricity more expensive. From Washington to Westminster, critics of clean energy have repeatedly framed renewables as an economic burden rather than a solution.
But a growing body of real-world data tells a very different story.
An extensive analysis of electricity markets across the United States, the European Union, Australia, and India shows that high penetration of wind and solar is not associated with higher power prices. “In many cases, it is linked to below-average electricity costs, directly challenging the claim that renewables drive up consumer bills,” according to an analysis, titled The myth of renewables pushing up power prices, by Zero Carbon Analytics.
The claim versus the evidence
Opponents of renewable energy often argue that variable sources like wind and solar require “parallel systems” of fossil-fuel backup, making the overall grid more expensive. This argument has been voiced at the highest levels of politics.
In a September 2025 speech to the United Nations, US President Donald Trump described wind power as the “most expensive energy ever conceived” and said renewables are “unreliable” and “too expensive.” Similar claims have been made in the UK, where Conservative Party leader Kemi Badenoch argued that renewables and decarbonisation policies are “driving up the cost of energy” .
However, when electricity prices are examined alongside generation data, these assertions do not hold up.
“Claims that renewables drive up total costs are unsubstantiated when looking at hard data from numerous markets,” the report notes. In regions leading the transition to wind and solar, end-user electricity prices have “in most cases not climbed any faster than in places still more dependent on fossil fuels”.
Renewables versus fossil fuels: a cost reality check
At the level of generation economics, the advantage of renewables is already clear. According to the International Renewable Energy Agency (IRENA), nine out of ten new grid-scale renewable projects in 2024 produced electricity more cheaply than the cheapest new fossil-fuel alternatives.
Onshore wind now has the lowest average levelised cost of electricity (LCOE) globally at USD 0.034 per kWh, followed by solar photovoltaics at USD 0.043 per kWh. Power from new onshore wind farms is 53% cheaper than the most affordable fossil-fuel-based alternatives, IRENA reports.
Crucially, renewables paired with battery storage are also approaching cost parity with fossil fuel generation in key markets—undermining the argument that intermittency automatically means higher system costs.
The United States: cheaper power where renewables lead
In the world’s largest electricity market, the data is striking. Most US states with above-average shares of wind and solar in their electricity mix also have below-average residential power prices.
In the first nine months of 2025, three states—Iowa, South Dakota and New Mexico—generated more than 50% of their electricity from wind and solar. All three had household electricity prices below the national average. Among the ten US states with the lowest residential electricity tariffs, seven have above-average renewable integration, including Oklahoma, one of the country’s wind power leaders. The few exceptions—Louisiana, Arkansas and Washington—reflect local market dynamics rather than renewable costs.
California and Hawaii are often cited as counter-examples: both have high renewable shares and high electricity prices. But the report stresses that renewables are not the main driver.
In Hawaii, high prices stem largely from reliance on expensive imported petroleum. In California, electricity bills are pushed up by “significant and increasing wildfire-related costs” and grid infrastructure spending, according to the state’s Legislative Analyst’s Office .
Notably, despite these high absolute prices, electricity price inflation in both states has been well below the national average in 2025. While US residential prices rose 4.9% year-on-year, prices in California remained flat even as wind and solar shares increased by 5.8 percentage points. In Hawaii, residential prices fell 6.6% as renewable penetration rose further.
A separate study by Lawrence Berkeley National Laboratory reinforces this picture, finding that US power generation costs declined in real terms between 2019 and 2024, with rising bills driven instead by grid upgrades, supply-chain constraints and climate-related damage—not renewables.
Europe: breaking the link between gas and power prices
In the European Union, where the energy transition is further advanced, the relationship between renewables and prices is even clearer.
Most EU countries with above-average shares of wind and solar have below-average household electricity prices (pre-tax). Denmark, a global leader in variable renewables, exemplifies this trend.
The reason lies in how electricity markets work. In Europe, wholesale prices are set by the most expensive generator needed at any given moment—often fossil gas. In 2022, gas set day-ahead electricity prices around 60% of the time, despite supplying only 20% of electricity, according to the International Energy Agency (IEA).
As wind and solar expand, fossil fuels are needed less often, reducing their ability to dictate prices.
Spain offers a powerful case study. Wind and solar accounted for 44% of Spain’s electricity generation in the first half of 2025, compared to 31.4% across the EU. As a result, fossil fuels set Spanish power prices only 19% of the time, down from 75% in 2019. Spain’s wholesale electricity prices were 32% lower than the EU average during this period.
These savings reached consumers. Spanish households paid an average of EUR 0.18 per kWh, 13.1% below the EU average in early 2025.
The IEA estimates that EU consumers saved around EUR 100 billion between 2021 and 2023 due to new wind and solar replacing expensive fossil fuel generation—and that savings could have been 15% higher with faster deployment.
India: early transition, emerging signals
India’s power system remains dominated by coal, which supplied 73.6% of electricity in 2024, according to Ember. At this stage, the report finds no clear nationwide relationship between renewable penetration and power prices, largely because many states still have negligible wind and solar capacity.
However, early signals are emerging. In Rajasthan, where renewable deployment is more advanced, the average price paid by distribution utilities is below the national median.
A peer-reviewed study in the journal Energy Policy suggests that rising renewable integration in Madhya Pradesh could reduce power purchase costs by up to 11%, with savings increasing as demand grows and technology costs continue to fall.
Australia: complexity, but clear daily signals
Australia presents a more complex picture. In the third quarter of 2025, renewables-laggard Queensland recorded the lowest wholesale prices, while renewables-leader South Australia recorded the highest.
But the report stresses that South Australia’s high prices predate its energy transition, which only accelerated around a decade ago. Structural issues—such as a concentrated market for “on-demand” electricity and limited transmission—play a major role.
Daily data tells a different story. When wind and solar make up a large share of South Australia’s electricity mix, prices tend to fall. On days when renewables exceed 85% of generation, wholesale prices sometimes turn negative, reflecting abundant low-cost supply.
Looking ahead, Australia’s Energy Market Commission expects national residential electricity prices to fall by around 5% by 2030—but warns that prices could rise again if renewable deployment slows.
What the global data really says
Across markets with vastly different political systems, grid structures and fuel dependencies, one pattern is consistent: renewables are not driving up electricity prices.
“There is ample evidence that renewables have shielded consumers from energy price spikes during global crises,” the report points out. With the cost of wind, solar and battery storage continuing to fall, countries have an opportunity to build more resilient, affordable and stable electricity systems—provided supportive policy frameworks are in place
The myth that renewables make power expensive persists in political rhetoric. The data, however, tells a quieter but far more compelling story—one where clean energy increasingly acts as a buffer against volatility, rather than its cause.
Sustainable Energy
India’s Power Grid Gets Greener: Green Energy Break a New Record
India’s solar and wind energy crossed the 100 GW mark for the first time, supplying nearly half of the country’s electricity at one point. The milestone highlights the growing role of renewables in meeting India’s rising power demand—and the storage challenges that could shape the next phase of the energy transition.
As India grappled with another summer of soaring electricity demand, the country’s power grid quietly reached a milestone. For the first time, solar and wind together generated more than 100 gigawatts (GW) of electricity, supplying nearly half of the country’s power at one point.
According to Grid Controller of India Ltd. (GRID-INDIA), utility-scale solar and wind generation reached 103.7 GW at 12.05 pm on July 13, the highest recorded so far. A few minutes later, the two sources supplied 42.79% of the electricity flowing through the national grid. The following day, generation crossed the 100 GW mark again, showing that the achievement was not a one-off event.
The record comes at a time when rainfall has been lower than usual. According to the India Meteorological Department (IMD), the southwest monsoon is expected to bring about 90% of the country’s normal rainfall this year. With lower inflows into reservoirs, hydropower generation can come under pressure, making solar and wind even more important in meeting electricity demand.
The achievement signals a broader shift. Renewable energy is no longer just expanding on paper through new projects—it is increasingly helping power homes, businesses and industries during periods of high demand.
Solar and Wind Energy: India’s Growing Demand for Electricity
India’s appetite for electricity continues to grow.
According to Power Minister Manohar Lal, the country’s peak electricity demand has already reached about 271 GW this year. The government expects it to touch around 300 GW by 2027, driven by rising use of air conditioners, electric vehicles, data centres and industrial activity.
Meeting that demand has traditionally meant relying on coal-fired power plants. This year, however, solar and wind energy has played a larger role. According to GRID-INDIA, solar generation reached a record 81 GW during the April heatwave, helping ease pressure on conventional power plants during the middle of the day.
The International Energy Agency (IEA) expects India to remain one of the world’s fastest-growing renewable energy markets through the rest of the decade. But it also warns that investment in electricity grids and storage must grow alongside renewable energy.

The Challenge Begins After Sunset
The July record was achieved around noon, when solar panels generate their highest output. Electricity demand, however, often remains high long after sunset.
That is why many experts say the next phase of India’s clean energy transition will depend less on building more solar parks and more on storing the electricity they generate.
“The achievement shows the national grid can absorb much larger volumes of renewable electricity than before. The next priority is expanding energy storage so surplus solar power generated during the day can be supplied after sunset,” said Shreya Jai, Energy Lead at Climate Trends.
Solar Energy and Storage Challenges
Research points in the same direction. A recent study by researchers from the University of California, Berkeley, the India Energy and Climate Center and partner institutions found that expanding battery storage and making the grid more flexible would allow India to integrate much larger shares of solar and wind while maintaining a reliable electricity supply.
Disha Aggarwal, Fellow at the Council on Energy, Environment and Water (CEEW), said the milestone shows renewable energy is becoming a larger part of the country’s actual electricity supply, rather than just its installed capacity. She said the next priority should be scaling up energy storage, strengthening reserve capacity and creating electricity markets that can better support evening demand.
Storing renewable energy, however, remains one of India’s biggest challenges. Battery systems are still expensive, while pumped hydro projects require suitable terrain, long construction periods and multiple regulatory clearances. Expanding transmission networks to carry renewable power from generation centres to demand hubs is another hurdle.
Crossing the 100 GW mark shows that India can generate renewable electricity at an unprecedented scale. The bigger challenge now is ensuring that clean power generated during the day can be stored and delivered when homes, hospitals and industries need it most.
Sustainable Energy
Could This Molecular Sponge Change Nuclear Wastewater Forever?
Tritium has long resisted conventional wastewater treatment because it behaves almost exactly like ordinary water. Researchers now say a “molecular sponge” may finally make separating the radioactive isotope faster and more efficient.
For decades, tritium has remained the one radioactive contaminant that nuclear engineers could not efficiently remove from wastewater. Unlike other radioactive elements, tritium becomes part of the water molecule itself, making it nearly impossible to separate using conventional treatment methods. Instead, facilities have relied on energy-intensive distillation or, in some cases, the controlled dilution and release of treated water that still contains tritium within regulatory safety limits.
Now, researchers in China report a possible solution. In a study published in Environmental Science & Technology, they developed a metal-organic framework (MOF)-coated material that significantly improves tritium separation during distillation. This study builds on work that won the Nobel Prize in Chemistry last year. If the technology performs similarly outside the laboratory, it could make treating radioactive wastewater far more efficient.

The problem Hidden Inside a Water Molecule
Most radioactive contaminants can be removed using filters or chemical treatment. Tritium is different because it replaces one of the hydrogen atoms in the water molecule itself. That means the contaminated water looks and behaves almost exactly like clean water.
For decades, the only practical way to separate the two has been distillation. Since tritiated water boils at a slightly different temperature, the process eventually works. But the difference is so tiny that it requires enormous distillation towers and a great deal of energy.
The difficulty came into public focus in 2023 when Japan began releasing treated wastewater from the Fukushima Daiichi nuclear power plant into the Pacific Ocean. Although most radioactive substances had been removed, tritium remained because no practical technology existed to separate it at such a large scale. Instead, the water was diluted before being released under international safety standards.
A Sponge at the Molecular Level
Inside every distillation tower are materials called packings, which create surfaces where water vapour and liquid interact. Traditionally, these packings simply help the process along. The researchers turned them into active participants.
They coated a stainless-steel mesh with a metal-organic framework (MOF) called NH₂-MIL-101(Cr). MOFs are often described as molecular sponges because they contain countless microscopic pores packed into a tiny space. But this sponge does more than hold water. Its chemical structure encourages tritium atoms to exchange places with ordinary hydrogen atoms, making them easier to separate during distillation.
In laboratory tests, the material achieved a separation efficiency of 42.5 theoretical plates per metre, the highest reported for this type of distillation system. The team estimates that a 10-metre distillation column fitted with the new material could outperform the best previously reported packing by 134 times. Compared with the commercial packing materials used today, its overall separation performance could be up to one million times greater under similar industrial conditions.
Those figures still need to be validated outside the laboratory, but they suggest that future treatment systems may no longer need the massive, energy-hungry towers used today.
Sustainable Energy
India Becomes World’s Fourth-Largest LNG Import Hub as Gas Infrastructure Grows
India has become the world’s fourth-largest market for liquefied natural gas (LNG) regasification capacity after expanding its import infrastructure in 2025, according to the International Gas Union’s (IGU) World LNG Report 2026.
The report says India’s total LNG regasification capacity reached 52.5 million tonnes per annum (mtpa) by the end of 2025, after adding 7.1 mtpa during the year. The increase helped India overtake Spain in global rankings.
The additional capacity came from two projects: the 5 mtpa Chhara LNG terminal in Gujarat and the completion of a breakwater at the Dabhol LNG terminal in Maharashtra, which added 2.1 mtpa by allowing the terminal to operate throughout the year.
LNG is natural gas that is cooled into a liquid so it can be transported by ship. Once it reaches India, it is converted back into gas at regasification terminals and supplied to industries, fertiliser plants, refineries and city gas networks.
Supporting India’s growing energy needs
India’s demand for energy is rising as industries expand and cities grow. Since domestic natural gas production is not enough to meet demand, the country imports a large share of its gas as LNG.
More regasification capacity means India can import larger volumes of LNG from different countries, improving energy security and reducing the risk of supply disruptions. It also gives industries access to a more reliable fuel supply.
The IGU report notes that global LNG trade reached a record 436.98 million tonnes in 2025, with Asia remaining the largest market for LNG.
India has also been working towards increasing the share of natural gas in its energy mix from around 6% to 15%. The government sees natural gas as a fuel that can help reduce dependence on coal while supporting sectors where cleaner alternatives are still developing.
A transition fuel with challenges
Although natural gas burns cleaner than coal, it is still a fossil fuel. Many experts describe it as a transition fuel because it can help lower emissions in the short term while renewable energy continues to expand.
However, natural gas also has environmental concerns. Methane, the main component of natural gas, is a powerful greenhouse gas, and leaks during production and transport can reduce its climate benefits.
India is therefore following a dual approach: expanding gas infrastructure to meet current energy needs while continuing to invest in solar, wind, green hydrogen and battery storage to achieve its long-term climate goals.
The IGU report shows that India’s latest investments are aimed at balancing energy security, economic growth and the transition to cleaner energy, even as the country continues to expand its renewable energy capacity.
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