European clean energy could lose its 'extra' profit to cut consumer bills

A new research paper suggests European countries could lower electricity bills by changing how they pay clean energy producers. The idea is to reduce the extra profits clean energy companies make when fossil fuel prices drive up the overall electricity price.

When fossil fuel prices are high, clean energy producers often make large profits. They sell their power at the same high price, even though their own costs are low. This paper suggests a way to redirect some of those 'windfall profits' back to consumers. It aims to make electricity cheaper without discouraging investment in clean energy.