Do Household Electricity Prices in European Union Countries Depend on the Energy Mix?

Abstract

In recent years, the international situation and requirements regarding carbon dioxide emissions have increased the production costs of electrical energy and, consequently, prices. The solution to the problem, and at the same time a contribution to improving the quality of the natural environment, is the promotion of renewable energy. The aim of the study was to determine the impact of the share of renewable energy in the energy mix and electricity consumption on household electricity prices. The study was based on data for the EU and Norway for the years 2011–2021. The data have been extracted from the Eurostat database. Multilevel modelling and a correlation analysis were used. It turns out that the situation in the countries covered by the study is different. There are significant differences in electricity prices, consumption and the share of renewable energy in the countries of the EU. The common trend observed is an increase in the share of renewable energy in the energy mix, from 18.6% to 26.3% on average over a decade. Moreover, an increase in the share of renewable energy does not mean a decrease in prices, which increased by approximately 20%.