CEENRG researchers publish in Nature Energy on renewables and power price stability

Two researchers at the Cambridge Centre for Environment, Energy and Natural Resource Governance (CEENRG) have published a new article in Nature Energy.

The article, entitled 'Power price stability and the insurance value of renewable technologies' was co-authored by Daniel Navia and CEENRG Director Professor Laura Diaz Anadon.

The researchers looked at whether renewable energy types stabilise or destabilise electricity prices, and they did this by modelling european power markets.

Professor Anadon said:

'The volatility of energy prices is a major cause of damage to national economies ... Consumers are still reeling from sharp increases in electricity prices brought about by natural gas shortages following Russia’s invasion of Ukraine ... We show that hitting renewables targets reduce the likelihood of such price spikes in the future.'

Daniel Navia said:

'Meeting renewable energy targets is not only good for carbon neutrality, but we can see it is a boost to economic resilience ... We had probably underestimated how costly energy price shocks are to our societies, and the last crisis has been a stark reminder.'