Europe's industrial electricity prices 2024

Europe's industrial electricity prices also vary in the year 2024 and are dependent on numerous factors. In Germany and other European countries, they are made up individually. Large or energy-intensive companies generally benefit from lower tariffs than private households, which makes it necessary to differentiate between private and industrial electricity prices.

Composition of European industrial electricity prices

Industrial electricity prices are determined by various factors. The largest share is usually accounted for by wholesale prices on the Spot marketswhich are decisive when concluding contracts with energy suppliers. In addition Grid charges, Taxes and Charges.

Companies with high energy consumption often benefit from special reliefs such as Subsidies, Tax concessions or reduced grid chargesas for example in Germany the "Band current-privilege" or the "Atypical grid usage" in accordance with Section 19 (2) StromNEV. In addition, many large consumers still receive free CO₂ certificates as part of European emissions trading and have access to individually negotiated, often not publicly known, special contracts.

Europe's industrial electricity prices 2024 at a glance

In 2024, the average European industrial electricity price was 18.7 cents/kWh for industry with an annual consumption of between 20 MWh and 500 MWh. This includes the grid fees. However, VAT and other fees were not taken into account.

According to the survey, companies in Ireland paid the highest prices at 25.6 cents/kWh, followed by Cyprus (24.5 cents). The lowest prices were recorded in Finland (9.3 cents), Sweden (9.4 cents) and Denmark (9.8 cents). Germany was with 23.3 cents/kWh about 25 % above the EU average, with industrial customers with lower consumption (< 20 MWh) in the medium voltage only 16.99 cents/kWh on average. Companies in Poland paid 20.8 cents, which was 11 % below the average, while in France almost 27 % less was charged at 17.1 cents.

Challenges in comparing Europe's industrial electricity prices

Several factors make it difficult to compare industrial electricity prices:

• Inconsistent cost structures: The composition of electricity prices varies considerably between countries. For example, although procurement and distribution costs are high in the Netherlands, the overall price there remains lower than in Germany.
• Regulatory differences: Countries with a high proportion of renewable energies often have lower generation costs than those that rely heavily on fossil fuels. In addition, national subsidy programs, electricity taxes and value-added taxes have different effects.
• Currency and market differences: Fluctuating exchange rates, different market conditions and geopolitical situations influence costs and make direct comparisons difficult.

Development & outlook

The development of industrial electricity prices in Europe varied in 2024, with a general trend towards higher prices. Stabilization and Partial reduction was observed. In Germany, the industrial electricity price fell by around % compared to 2023. In some countries, electricity prices fell significantly, for example in Romania (-55 %), the Netherlands (-43 %), Belgium (-23 %) and Lithuania (-18 %). However, other countries recorded price increases, including Ireland (+51 %), Spain (+34 %) and France (+20 %). These developments reflect Regional differences in electricity generation and procurement.

Procurement costs are a significant component of industrial electricity prices. Companies can influence their costs through strategic procurement concepts. Fixed price procurement offers Stabilitywhile spot market procurement Flexibility and potential savings. Generating our own electricity through the use of renewable energies and innovative approaches always reduces costs and enables stable prices in the long term.

Easing of Europe's industrial electricity prices in 2024

Industrial electricity prices in Europe have eased to some extent in 2024, but there are still major differences between countries. Germany is slipping further up the rankings due to high levies and surcharges, as our article from the end of 2023 "Industrial electricity prices in a European comparison" shows. Overall, a stable and affordable industrial electricity price remains crucial in order to secure the long-term competitiveness of the German and European economy. Companies can reduce their costs and contribute to decarbonization at the same time through strategic procurement and increased use of renewable energies.