Europe’s renewable expansion is lowering the cost of electricity generation, but retail electricity prices remain high. This article explains why grid constraints, system balancing costs, and market design now matter more than generation costs in determining what consumers actually pay.

Solar expansion is often assumed to directly reduce fossil fuel use, but electricity systems do not work as simple substitution models. This article explains why rising demand, grid constraints, infrastructure lock-in and market design mean fossil fuels can persist even as renewable energy grows, and what actually determines when real displacement occurs.