Solar energy has saved Europe more than €100 million per day since 1 March, totaling more than €3 billion. Wind and solar power have reduced electricity prices by an average of 24% between 2023 and 2025. If gas prices remain high, total savings in 2026 could reach €67.5 billion.
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A new report from the advocacy group Positive Money has analyzed the electricity markets in 19 European countries. The report shows that the expansion of renewable energy has reduced electricity prices by an average of 24.2 percent between 2023 and 2025. The impact on prices grows stronger as more renewable energy is connected to the grid.
According to the report, renewable energy displaces more expensive fossil fuel generation from the electricity mix. This pushes down wholesale electricity prices.
Since 2019, Spain has doubled its wind and solar capacity. The country has added more than 40 GW, more than any other EU country except Germany. The German electricity market is twice the size of the Spanish one.
The expansion has made the Spanish electricity price significantly less affected by the price of gas. The price of gas rose by 55 percent the day after the war with Iran began and has continued to fluctuate.
In the United Kingdom, wind power set a new record on 26 March. British wind power generation reached 23,880 megawatts. That is enough to supply 23 million homes with electricity.
An analysis from SolarPower Europe shows that solar energy has saved Europe more than €100 million per day since 1 March. Total savings amount to more than €3 billion.
If gas prices remain high, total savings in 2026 could reach €67.5 billion, according to experts.
Positive Money highlights two conclusions for policy. In countries with limited wind and solar capacity, further expansion is the easiest way to reduce wholesale electricity prices.
In countries that already have large wind and solar capacity, system flexibility should be built out. This includes investments in batteries to store surplus electricity, encouraging rooftop solar, and introducing variable electricity tariffs that balance supply and demand.
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