  This paper studies the realizability and compatibility of the three CEP2020
targets, focusing on electricity prices. We study the impact of renewables and
other fundamental determinants on wholesale and household retail electricity
prices in ten EU countries from 2008 to 2016. Increases in production from
renewables decrease wholesale electricity prices in all countries. As decreases
in prices should promote consumption, an apparent contradiction emerges between
the target of an increase in renewables and the target of a reduction in
consumption. However, the impact of renewables on the non-energy part of
household wholesale electricity prices is positive in six countries. Therefore,
decreases in wholesale prices, that may compromise the CEP2020 target of
decrease in consumption, do not necessarily translate into lower household
retail prices.
