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It is often believed that the transition to renewable energy sources will lead to a reduction in energy prices due to the abundant supply of resources like wind or sunlight. Energy analyst Mark Gallagher studied this concept in the UK power market. He constructed a theoretical model of a total shift to renewables in the UK and found that energy prices would initially increase due to the high cost of installing and implementing these new systems.
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Energy economists Fiona Rosen and Howard Sugarman conducted a comprehensive study of Germany's ambitious transition to renewable energy sources. Their findings revealed that despite initial inflation, the sustainable energy market impressively matured over the decade covered in their detailed study. Ultimately, energy prices decreased, reaching a level lower than they were before the transition.