Accelerating the roll-out of renewable energy could generate up to €600bn in net benefits across the EU, according to a study.

An international study, led by scientists at the Max Planck Institute for Chemistry (MPIC) in Germany, has evaluated how different responses to rising and volatile fossil fuel prices could affect Europe’s energy systems, economic development, air quality, climate and public health. 

The team took a holistic approach with their study, combining a number of established models to evaluate the overall societal and economic impact of different short-term measures and long-term strategies.

The results show that a long-term strategy of rapidly shifting to large-scale renewable energy will not only close the energy supply gap but also help mitigate climate change and improve public health. According to the researchers, the substantial societal and economic benefits outweigh the costs of rapidly rolling out renewable energy.

The study comes at a time when geopolitical tensions and energy import limitations have raised energy prices across the EU. With no signs of these prices returning to pre-2020 levels, the researchers warn that there needs to be a critical re-evaluation of the EU’s energy transition strategies.

Due to increased energy price levels, phasing out fossil fuels more quickly and reaching net zero before 2050 was found to bring greater benefits than previously anticipated.

For example, accelerating renewable energy expansion to reach net-zero emissions a decade earlier could lead to estimated benefits across the EU of between €100bn to €600bn. The benefits include lower fossil fuel costs, reduced carbon emissions, cleaner air and improved public health. Together, the study found these savings outweigh the costs of building new power plants, infrastructure and end-use equipment.

However, the study warns that rapidly expanding renewable power generation will mean investment in grid management, energy storage and measures to reduce curtailment to help balance the electricity system.

Professor Yafang Cheng, director of the aerosol chemistry department at the MPIC and corresponding author of the study, said: “Renewable energy offers substantial long-term benefits, but the transition must still be carefully planned. Considering dynamic changes in electricity costs is an important step towards more realistic projections for rapid renewable energy expansion and supports the development of efficient and sustainable strategies to address the grand challenges of the renewable energy transition and global change.

“Our results demonstrate that cleaner energy pathways become more attractive in energy system planning and decision-making when prices and policy instruments more fully reflect the climate, health and economic costs associated with fossil fuels.”

Although the study was focused on the EU, the researchers say their findings are relevant to regions around the world seeking to strengthen their energy security while accelerating cleaner energy transitions.

Professor Ulrich Pöschl, co-author and director of the multiphase chemistry department at the MPIC, said: “Overall, the study underlines that the societal and economic effects of energy security, climate change and public health should be evaluated together, and that clean air merits consideration as a sustainable development goal.”

Their study – ‘Rethinking energy transition strategies for the European Union amid rising energy prices’ – has been published in the journal Proceedings of the National Academy of Sciences.