Decline of renewable energy sources: prices for wind and solar energy have fallen to record levels

Countries across Europe have invested heavily in wind and solar energy projects in recent decades as the price of these clean energy sources has fallen in line with falling installation and grid connection costs.

The rapid pace of solar and wind energy development is outstripping the region’s ability to cope with oversupply. Big change in business development and price politics damage the renewable energy sector, leading to a collapse. OilPrice columnist Felicity Bradstock writes about this.

The rapid growth of solar and wind energy has led to a surplus of electricity, which has depressed prices and led to negative prices. This price volatility is a challenge to grid stability and energy providers, highlighting the need to find energy storage solutions. As a result, neither electricity suppliers nor private and business end-users want to buy RES products, because the instability of generation cannot satisfy any demand.

Governments and energy companies need to invest in batteries, smart grids and more technologiesto manage fluctuating renewable energy supplies and ensure a smooth transition to a clean energy future.

For the renewable energy industry, that is, wind and solar energy, as the main areas of the renewable sector, the problem of price jumps is very important. With the high cost of use and, as a result, the high price of products, investors leave the project as unprofitable. And at the lowest price (as it is now), investors and developers will not be able to recover the project and make a profit, which also hinders capital with interest at attractive prices for themselves and their clients.

In other words, the whole industry, when it is oversaturated with wind stations and solar panels, loses its meaning as a business project. Renewable energy sources are ceasing to be the savior of humanity, after collapsing over normal market factors.