FRANKFURT, Reuters – Reducing the growth of renewable energy within the European Union will increase carbon emissions and cause higher electricity prices for industry. However, a rapid rollout would stabilize or reduce bills. Researchers said Wednesday.

Aurora Energy Research compared the speeds at which wind and sun can be built up up to 2030. These factors are dependent upon the willingness of policymakers, to ensure that carbon-free energy is included in the power mix.

This study was done just prior to the COP26 United Nations Climate Summit, which takes place Oct. 31-Nov. 12.

Aurora released a statement saying that governments must remove any obstacles to renewable energy expansion in order to maintain the industry’s competitiveness in Europe.

Aurora is assuming that the huge capacity of renewables allows maximum sun- and wind-related utilisation, leading to an increase in zero carbon power supply and falling prices as investment in these installations are amortized.

The wholesale power price is directly linked to the EU mandatory carbon trading system (ETS), which requires that conventional power stations cover their output by pollution allowances.

According to the “Fit for 55” program, the EU committed to reduce its greenhouse gas emissions by 55% by 2030 from 1990 levels.

Aurora stated that failure to boost green power construction may lead to an 80 percent increase in CO2 prices in 2030. This would drive up wholesale power costs in Germany 31% higher than the average price in the first half of 2021.

Land restrictions, excessive bureaucracy and social-distancing rules have slowed construction.

Aurora warned that this would lead to more construction of gas plants or the closure of coal plants, increasing dependency on importers as well demand for CO2 permits.

German prices may plummet if renewable expansion rates are aligned with Fit For 55 targets, which could result in 14% lower German currency by 2030.