A Renewable Energy Target (RET) of 50 per cent by 2030 is likely to put downward pressure on electricity prices. There is a large body of research, using a number of different methods, that has looked at the effect of the RET’s 2020 target on electricity prices. They have broadly come to same conclusion. Higher rates of renewable energy will not lead to significant rises in electricity prices. In fact almost all the studies looked at in this paper show electricity prices are likely to fall under higher renewable targets. A smaller body of research shows that higher 2030 targets will continue the effect.
The conclusion that the RET will push down electricity prices was reached by the government’s own review, led by self confessed climate sceptic Dick Warburton. The government’s mounting rhetoric that the RET will push up electricity prices is simply not supported by the available evidence.