This chapter focuses on the repercussions of electricity sources’ seasonality on business cycle (BC) and economic growth instabilities. A sample of 23 European countries from the 1st quarter of 2010 to the 2nd quarter of 2022 was used to perform this study. DOLS and FMOLS estimators were employed to manage the cointegration found and the existence of long-run relationships between energy sources’ volatility and GDP growth rate volatility. As expected, evidence was found that electricity sources’ volatility impacts GDP growth rate volatility, and the magnitude of this impact changes between countries with a portfolio of intermittent renewable energy sources, controllable renewable energy sources and Non-renewable energy sources. The results of this chapter align with previous studies that found that renewable and non-renewable energy sources have heterogenous impacts on BC. Furthermore, this research extends the literature by quantifying the volatility impacts of each energy source on GDP growth rate volatility.
