RRF impact on Energy prices

For consumers, electricity costs matter, not electricity prices

Electricity costs are made of energy, network charges, and taxes & levies

Figure 1: Electricity bill breakdown^[1].

Member States with high RES and low-carbon generation shares tend to benefit from lower prices (in green below) than those that predominantly rely on fossil fuels to generate their electricity. 

RES electricity is domestically produced, contrary to most natural gas that is imported.

To be more effective in decreasing electricity costs, increasing RES generation capacity must go together with stronger and more flexible grids. 

Figure 2: Average electricity spot price in 2025^[2]

Click here for the interactive map

Figure 3: Combined RRF reform / investment support to lower electricity costs^[3]

The RRF contributes to lowering electricity bills 

The RRF supports, through reforms and investments:    
i) RES generation, 
ii) flexibility of supply and demand and 
iii) electricity networks

The map below shows the combined RFF support; the darker the shade, the more significant and across the board the RRF support.

The RRF therefore focuses on Member States with high electricity costs, as clear from the overlap of the top and bottom maps.

The RRF decreases the energy component of electricity costs

Member States with high share of RES / low-carbon electricity generation tend to have lower prices

RES and batteries cost nothing to run and eventually displace expensive price-setting fossil fuel technologies.

The equivalent of one third of all new renewable capacity deployed in the EU between 2021 and 2024 is supported by the RRF

• RRPs will deliver at least 61 GW of new renewable installed capacity, in MS that most need it

Direct support is not enough for a business case; simpler administrative framework and good market design are a must

• Faster RES deployment through licensing / permitting reforms (e.g. going from 5 years to 14 months in Greece):
• Better regulatory framework for RES long-term contracts (for instance in Poland, Romania and Italy)
• More liquid wholesale market in Bulgaria due to liberalisation – better economic opportunities for RES
• Lowering barriers for connection to the grid for RES (e.g. in Slovakia)

RES roll-out needs to be accompanied by electricity storage support to lower electricity prices throughout the day

• Around 11.1 GW of energy storage capacity across RRPs will store energy during periods of high renewable output and release it when demand peaks – ensuring reliability, reducing curtailment, and lowering reliance on fossil-based backup generation^[4]
• Bulgaria will become the balancing champion of SEE ^[5]

Figure 4:  Projected Annual Renewable Electricity Generation from RRP Investments [GWh/year]

Figure 5: Projected storage capacity under the RRF [MW]

The RRF supports network development and its flexibility

More stable and lower electricity prices come from improved electricity market integration thanks to better infrastructure 

Direct grid investment from the RRF will lower charges and levies for consumers^[7]Grid development delivers real added value and cost savings: the RRF investments will reduce grid management costs by at least 16bn by increasing the capacity of grids by 21 GW.

10 000km (1/4 of the Earth circumference) of reinforced / additional grids under the RRF (even more with financial instruments)

• RRF support helps SEE electricity prices move away from fossil fuel driven high prices^[8]
• RRF supported transmission lines to Greek and Italian islands remove levies. The interconnections of the Cyclades Islands (partially funded by the RRF) and Crete, will result in savings of more than EUR 2 billion between 2026-2029.^[9]

The RRF enables more investment in grid through reforms of investments frameworks (Poland, Italy, the Netherlands).

Better management of the grid infrastructure delivers low costs 

The RRF supports far-reaching market reforms to integrate RES and minimise grid management costs

• Balancing market / services reform – more opportunities for demand-response and storage, for instance in Bulgaria and Poland
• Better access to grid information – developers know where to invest, for instance in Bulgaria, Czechia, Slovakia
• Cable pooling for RES installations in Bulgaria and Poland to allow for a smarter use of existing grids
• Support to smart-metering - more flexible consumption, for instance in Greece and Hungary, leading to lower energy prices and lower investments needs for grids 

Figure 6:  Projected additional transmission and distribution capacity under the RRF

Figure 7:  Examples of cross-border infrastructure projects include in RRPs

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