In this article, we will list countries with the highest kilowatt-per-hour electricity prices to know where people are paying hefty energy bills. If you want more insights on energy transition and how corporations are playing a role, read 20 Countries With Highest Cost Of Electricity.
8. Netherlands
Average Electricity Cost Kilowatt Per Hour: $0.522
The Netherlands’ electricity is mainly generated from gas, coal, and increasing shares of renewables. Eventually, the energy taxation system shapes the country’s electricity prices. The densely populated nation’s emphasis on energy-efficient infrastructure also makes electricity costs high.
7. Lithuania
Average Electricity Cost Kilowatt Per Hour: $0.576
Lithuania has shifted towards diversifying energy sources and reducing dependence on imports, particularly from Russia. Moreover, decommissioning of the Ignalina Nuclear Power Plant, which once supplied more than 70% of Lithuania’s electrical power, caused higher energy costs as the country needed to invest in alternative sources.
6. Ireland
Average Electricity Cost Kilowatt Per Hour: $0.604
Ireland’s geographical isolation necessitates higher costs for fuel importation and transmission infrastructure. The country has also incorporated renewable energy into its grid, and it requires significant investment. Another key driver is the ‘Public Service Obligation’ levy, a mechanism to support national policy objectives related to renewable energy.
5. Germany
Average Electricity Cost Kilowatt Per Hour: $0.618
Germany, Europe’s largest economy, faces high electricity costs owing to its energy transition policy known as the Energiewende. The initiative seeks to shift from fossil fuels and nuclear power to more renewable energy sources. However, it also increases electricity costs. High grid fees, the Renewable Energy Act levy, and taxes contribute to the cost structure, making Germany’s electricity among the most expensive worldwide.
4. Denmark
Average Electricity Cost Kilowatt Per Hour: $0.631
Denmark also bears significant electricity costs that stem from its heavy investment in renewable energy infrastructure. As wind turbines account for a large percentage of the country’s electricity generation, they make end-user electricity expensive.
3. Belgium
Average Electricity Cost Kilowatt Per Hour: $0.652
Belgium’s electricity costs remain high because of the high operational costs of its aging nuclear power plants. Also, phasing out nuclear power plants, which are set to be completed by 2025, needs hefty investments in alternative energy sources. Belgium’s small size and dense population contribute to the network cost.
2. Austria
Average Electricity Cost Kilowatt Per Hour: $0.698
Since 2022, Austria has moved to solely relying on hydropower, wind, and solar energy. Grid maintenance and network costs also account for a large portion of Austrians’ electricity prices.
1. Italy
Average Electricity Cost Kilowatt Per Hour: $0.789
Italy has the highest cost of electricity in 2023 because of high taxes and levies on electricity. The country’s electricity network is based on imported energy, as it depends on imports to meet about 93% of its oil and gas needs.
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