European energy cost comparison
European energy cost comparison
European electricity costs in comparison - what this means for your power bill
European electricity costs in comparison - what this means for your power bill
European electricity costs in comparison - what this means for your power bill
In industry, electricity is no longer just an overhead cost, but a central factor for competitiveness. Anyone producing in Europe today often starts with a structural electricity price disadvantage compared to competitors in the US or China - and this disadvantage is measurable.
In industry, electricity is no longer just an overhead cost, but a central factor for competitiveness. Anyone producing in Europe today often starts with a structural electricity price disadvantage compared to competitors in the US or China - and this disadvantage is measurable.
In industry, electricity is no longer just an overhead cost, but a central factor for competitiveness. Anyone producing in Europe today often starts with a structural electricity price disadvantage compared to competitors in the US or China - and this disadvantage is measurable.
Europe pays significantly more for industrial electricity
Europe pays significantly more for industrial electricity
Recent analyses show:
For energy-intensive industries in the EU, average electricity prices in 2024 were
roughly twice the level in the US and
around 50% higher than prices in China.
Compared to 2019, electricity prices for these companies in Europe are still about 65% higher, even though they have fallen somewhat from the extreme levels seen in 2022.
The European Commission and reports to the EU indicate that European companies continue to face electricity prices that are around 2 to 3 times higher than in the US.
What this means for you:
Even if you procure energy professionally, as an industrial site in Europe you carry a price premium that competitors in other regions simply do not have.
Recent analyses show:
For energy-intensive industries in the EU, average electricity prices in 2024 were
roughly twice the level in the US and
around 50% higher than prices in China.
Compared to 2019, electricity prices for these companies in Europe are still about 65% higher, even though they have fallen somewhat from the extreme levels seen in 2022.
The European Commission and reports to the EU indicate that European companies continue to face electricity prices that are around 2 to 3 times higher than in the US.
What this means for you:
Even if you procure energy professionally, as an industrial site in Europe you carry a price premium that competitors in other regions simply do not have.
Recent analyses show:
For energy-intensive industries in the EU, average electricity prices in 2024 were
roughly twice the level in the US and
around 50% higher than prices in China.
Compared to 2019, electricity prices for these companies in Europe are still about 65% higher, even though they have fallen somewhat from the extreme levels seen in 2022.
The European Commission and reports to the EU indicate that European companies continue to face electricity prices that are around 2 to 3 times higher than in the US.
What this means for you:
Even if you procure energy professionally, as an industrial site in Europe you carry a price premium that competitors in other regions simply do not have.
What really drives your power bill
What really drives your power bill
At its core, your electricity costs are made up of three building blocks:
1. Procurement / energy price
1. Procurement / energy price
1. Procurement / energy price
The price per kilowatt hour of electricity delivered.
Driven by fuel prices, CO₂ costs, and supply and demand on the power markets.
The price per kilowatt hour of electricity delivered.
Driven by fuel prices, CO₂ costs, and supply and demand on the power markets.
The price per kilowatt hour of electricity delivered.
Driven by fuel prices, CO₂ costs, and supply and demand on the power markets.
2. Grid fees
2. Grid fees
2. Grid fees
Charges for the use of transmission and distribution networks.
Cover the costs of expansion, maintenance, and system services (for example redispatch in times of high renewable generation).
3. Taxes, levies, surcharges
3. Taxes, levies, surcharges
3. Taxes, levies, surcharges
For example electricity tax, concession levies, and various surcharges.
Together with grid fees and generation costs, one of the three main components of the final electricity price.
For many industrial companies the following holds true:
Procurement can be optimised through good contracts.
Grid fees and demand charges become the blind spot - and this is exactly where flexible load management and battery storage come in.
First understand the load profile,
then size the battery.
First understand the load profile,
then size the battery.
Grid fees and demand charges - load peaks as cost drivers
Grid fees and demand charges - load peaks as cost drivers
Grid fees for electricity typically consist of two parts:
an energy charge (ct/kWh) for the electricity taken from the grid and
a demand charge (€/kW) for the highest power taken from the grid (annual peak load).
The demand charge is particularly critical for industrial companies, because short load peaks can drive your costs for an entire year.
Grid fees for electricity typically consist of two parts:
an energy charge (ct/kWh) for the electricity taken from the grid and
a demand charge (€/kW) for the highest power taken from the grid (annual peak load).
The demand charge is particularly critical for industrial companies, because short load peaks can drive your costs for an entire year.
Grid fees for electricity typically consist of two parts:
an energy charge (ct/kWh) for the electricity taken from the grid and
a demand charge (€/kW) for the highest power taken from the grid (annual peak load).
The demand charge is particularly critical for industrial companies, because short load peaks can drive your costs for an entire year.
Real examples from projects (medium voltage)
Real examples from projects (medium voltage)
Real examples from projects (medium voltage)
Customer 1 (regional grid operator in southern Germany):
2022: 131.30 €/kW
2024: 215.60 €/kW
increase of around 64% in two years.
Customer 2 (industrial site in North Rhine-Westphalia):
2022: 94.60 €/kW
2024: 155.00 €/kW
likewise an increase of around 64%.
These values come from actual grid tariff sheets, not from model calculations.
The pattern behind this is clear:
Customer 1 (regional grid operator in southern Germany):
2022: 131.30 €/kW
2024: 215.60 €/kW
increase of around 64% in two years.
Customer 2 (industrial site in North Rhine-Westphalia):
2022: 94.60 €/kW
2024: 155.00 €/kW
likewise an increase of around 64%.
These values come from actual grid tariff sheets, not from model calculations.
The pattern behind this is clear:
Customer 1 (regional grid operator in southern Germany):
2022: 131.30 €/kW
2024: 215.60 €/kW
increase of around 64% in two years.
Customer 2 (industrial site in North Rhine-Westphalia):
2022: 94.60 €/kW
2024: 155.00 €/kW
likewise an increase of around 64%.
These values come from actual grid tariff sheets, not from model calculations.
The pattern behind this is clear:
Grid fees are rising - and demand charges in particular are quietly becoming margin killers at many sites.
First understand the load profile,
then size the battery.
First understand the load profile,
then size the battery.
Constant consumption, volatile prices - why lack of flexibility is expensive
Constant consumption, volatile prices - why lack of flexibility is expensive
The basic problem at many industrial sites is simple:
Production runs relatively constantly, and shifts, lines, and processes can only be shifted to a limited extent.
Market electricity prices, however, fluctuate strongly over the course of the day, between weekdays and seasons.
At the same time, load peaks occur when several assets ramp up at once or loads overlap unfavourably.
In the European power system, wholesale prices have calmed somewhat after the crisis, but they remain clearly above earlier years and continue to be volatile.
Concretely, this means for you:
The basic problem at many industrial sites is simple:
Production runs relatively constantly, and shifts, lines, and processes can only be shifted to a limited extent.
Market electricity prices, however, fluctuate strongly over the course of the day, between weekdays and seasons.
At the same time, load peaks occur when several assets ramp up at once or loads overlap unfavourably.
In the European power system, wholesale prices have calmed somewhat after the crisis, but they remain clearly above earlier years and continue to be volatile.
Concretely, this means for you:
The basic problem at many industrial sites is simple:
Production runs relatively constantly, and shifts, lines, and processes can only be shifted to a limited extent.
Market electricity prices, however, fluctuate strongly over the course of the day, between weekdays and seasons.
At the same time, load peaks occur when several assets ramp up at once or loads overlap unfavourably.
In the European power system, wholesale prices have calmed somewhat after the crisis, but they remain clearly above earlier years and continue to be volatile.
Concretely, this means for you:
Rising grid fees and demand charges squeeze margins
Rising grid fees and demand charges squeeze margins
Rising grid fees and demand charges squeeze margins
The necessary grid expansion and system services are reflected in grid fees that vary significantly by region. Companies with high load peaks pay disproportionately more.
The necessary grid expansion and system services are reflected in grid fees that vary significantly by region. Companies with high load peaks pay disproportionately more.
The necessary grid expansion and system services are reflected in grid fees that vary significantly by region. Companies with high load peaks pay disproportionately more.
Lack of consumption flexibility weakens competitiveness
Lack of consumption flexibility weakens competitiveness
Lack of consumption flexibility weakens competitiveness
Sites that
make loads flexible,
cut load peaks, or
shift consumption over time
can reduce their specific energy costs. Those who do not use these levers carry structurally higher electricity costs per tonne of product - in an environment where competitors in other regions already pay less.
Sites that
make loads flexible,
cut load peaks, or
shift consumption over time
can reduce their specific energy costs. Those who do not use these levers carry structurally higher electricity costs per tonne of product - in an environment where competitors in other regions already pay less.
Sites that
make loads flexible,
cut load peaks, or
shift consumption over time
can reduce their specific energy costs. Those who do not use these levers carry structurally higher electricity costs per tonne of product - in an environment where competitors in other regions already pay less.
How to tell if you have a power cost problem
How to tell if you have a power cost problem
Typical signals we see again and again in projects:
Electricity is one of your top 10 cost blocks in production.
Your grid fees and demand charges have risen significantly in recent years, even though energy consumption has only grown moderately.
Your load profile shows individual short peaks that determine your annual peak load.
Your production takes place mainly at times when electricity prices are statistically elevated (weekdays, daytime).
You operate multiple sites but have no consolidated transparency on load peaks, grid fees, and specific electricity costs per tonne of product.
If several of these points apply, it is highly likely that
your power costs today are higher than they would need to be, and
your site is exposed to further cost increases - regardless of how good your current supply contract looks.
Typical signals we see again and again in projects:
Electricity is one of your top 10 cost blocks in production.
Your grid fees and demand charges have risen significantly in recent years, even though energy consumption has only grown moderately.
Your load profile shows individual short peaks that determine your annual peak load.
Your production takes place mainly at times when electricity prices are statistically elevated (weekdays, daytime).
You operate multiple sites but have no consolidated transparency on load peaks, grid fees, and specific electricity costs per tonne of product.
If several of these points apply, it is highly likely that
your power costs today are higher than they would need to be, and
your site is exposed to further cost increases - regardless of how good your current supply contract looks.
Typical signals we see again and again in projects:
Electricity is one of your top 10 cost blocks in production.
Your grid fees and demand charges have risen significantly in recent years, even though energy consumption has only grown moderately.
Your load profile shows individual short peaks that determine your annual peak load.
Your production takes place mainly at times when electricity prices are statistically elevated (weekdays, daytime).
You operate multiple sites but have no consolidated transparency on load peaks, grid fees, and specific electricity costs per tonne of product.
If several of these points apply, it is highly likely that
your power costs today are higher than they would need to be, and
your site is exposed to further cost increases - regardless of how good your current supply contract looks.
Our proposal for the next step
Our proposal for the next step
Instead of talking about high energy prices in abstract terms, we make the topic concrete:
In a free site analysis we show you, for each of your plants
how your electricity costs are distributed across procurement, grid fees, and demand charges,
what role individual load peaks play in your annual costs,
and what realistic savings potential exists through load flexibility and battery storage.
First understand the load profile,
then size the battery.
First understand the load profile,
then size the battery.
On this basis you can decide whether a battery storage system is the right lever for your site - with robust numbers instead of marketing promises.