Every country has a different type of electricity, and some countries heavily rely on renewable energy sources such as wind power, hydropower, or solar power. In others, they still utilize a large amount of coal energy. A variety of factors are considered for the consumer cost of electricity like energy sources, Local tariffs, and the privatization of resources. In general, market prices are the result of limited supply and increased demand.
One great example is the price of electricity in the Solomon Islands. It has the highest electricity cost in the world, with a staggering rate of 99 US cents per kilowatt-hour. The Solomon Islands is primarily considered as a weak and vulnerable nation due to its secluded location and its low economic capabilities. The type of energy most used in the country is diesel power, which results in prices that can go up to one US dollar per kilowatt-hour. It should be noted as well that its neighboring nations, Vanuatu, the US Virgin Islands, the Cook Islands, and Tonga are also at the top of the list in the global electricity prices.
On the flip side, first world countries come just below these countries in electricity prices. We will delve more in-depth as to what makes these countries take most of the spots in the list.
Cost Of Electricity By Country
US Dollar Cents Per Kilowatt Hour
|3||United States Virgin Islands||51.9|
In Europe, Germany takes the top spot in electricity prices. They have a rate of around 35 US cents per kilowatt-hour. And because of the high costs, Germany made a program to increase the contribution of electricity coming from renewable sources by as much as 80% by the calendar year 2050. The country produced a record-setting figure of 27% of its electricity coming from renewable sources in the first quarter of 2014. This resulted in much favorable weather and increased the capacity to use renewable energy within the country.
Repercussions were inevitable for this kind of program, including an unstable power grid, which affected the German households the most with increased cost. Another is the need for a secure back-up power that is affordable and reliable.
The total Danish household price for electricity increased to 35 cents by approximately .5 cents per kilowatt-hour. This price makes it the highest of its time. Electricity prices per kilowatt-hour were at their lowest in the first half of 2010 at 29 cents. Danish households spent the most per kilowatt-hour of electricity throughout Europe in 2018, with prices slightly more expensive than in Germany.
Denmark makes a costly country for people to use electricity, and it still uses a large amount of coal to supply the energy demand. But the Danes are currently undergoing a rapid energy system transformation. It appears that electricity consumers are bearing a slight brunt of the Energy Strategy’s costs, but the lion’s share of Denmark’s high electricity prices can be attributed to taxes not specific to energy policy. Denmark’s electricity system is relatively clean and only getting cleaner despite its current energy mix.
In the second half of 2018, the average electricity price for households was 32 cents per kWh. This was an increase from the previous period. The full liberalization of the energy market in Belgium started back in 2007. Supposedly beneficial to consumers, it does not seem to have had the desired effect. In fact, according to the CREG, the total electricity bill of a private individual increased on average 69.51% between 2007 and 2016. A fact that can be explained by the spike in cogeneration and renewable energy contributions, transmission, and distribution tariffs as well as public taxes.
From 2010 to 2015, electricity prices on a household level in Italy saw an overall increase during this period, rising from 22 cents per kilowatt-hour to 24 cents. There was a gradual increase in cost, peaking at 27 cents per kilowatt-hour. The following years experienced a steady decline, falling to 23 cents by the first half of 2018.
This transition will be fundamental to overcome some of the significant changes that our society is about to face (e.g., In the next decade, electric cars are expected to enter the market together with an additional demand for electricity). In the future, the Italian retail market will have to accept real-time pricing for household use, and consumer behavior will need to adjust to becoming more sustainable. The first step towards this scenario will be the complete liberalization of the market with the suppression of the standard offer rate.
The overall finding is that, in the retail market, liberalization is creating excellent opportunities for cheaper energy component supply.
According to Statista, electricity prices for household end-users in the Netherlands averaged an electricity price at 19 cents per kWh in the second half of 2018.
The average electricity price in the Netherlands is 23 cents per kilowatt-hour (kWh). This is 28% above than the average in other EU countries and just three cents below Denmark and Germany, which are the most expensive in Europe. Ukraine, by the way, is by far the cheapest – there you will pay only four cents per kWh.
In 2017, the average electricity price was at 15 cents per kilowatt-hour. In comparison, the prices for electricity was 14 cents per kilowatt-hour in 2010. For households, the electricity tariff will rise from 22.79 to 24.22 cents per kWh, excluding Goods and Services Tax (GST), from Jul 1 to Sep 30. This means that the average monthly electricity bill for families living in four-room Housing Board flats will increase by $3.78
Generally speaking, electricity rates are expected to increase slightly in the coming years. Price differentiation will continue, based on location and fuel type and natural gas will gain even more market share. The time of use rates is growing more common in the commercial side, especially in Singapore, where green-certified electric retailers continue to have more competitive pricing plans to meet the consumption demand of the country. As renewable electricity continues to set records, the demand will slowly be met, and hopefully, a reasonably priced electricity will be available even for third world countries.