Ireland, Italy, and Germany had some of the highest household electricity prices worldwide, as of March 2025. At the time, Irish households were charged around 0.45 U.S. dollars per kilowatt-hour, while in Italy, the price stood at 0.43 U.S. dollars per kilowatt-hour. By comparison, in Russia, residents paid almost 10 times less. What is behind electricity prices? Electricity prices vary widely across the world and sometimes even within a country itself, depending on factors like infrastructure, geography, and politically determined taxes and levies. For example, in Denmark, Belgium, and Sweden, taxes constitute a significant portion of residential end-user electricity prices. Reliance on fossil fuel imports Meanwhile, thanks to their great crude oil and natural gas production output, countries like Iran, Qatar, and Russia enjoy some of the cheapest electricity prices in the world. Here, the average household pays less than 0.1 U.S. dollars per kilowatt-hour. In contrast, countries heavily reliant on fossil fuel imports for electricity generation are more vulnerable to market price fluctuations.

In September 2024, industrial electricity prices in the European countries of Germany, Italy, and the United Kingdom were among the highest in the world, at around **** U.S. dollars per kilowatt-hour. Singapore was the Asian country with the highest electricity bill worldwide at that time. Lowest electricity prices in the world The average retail electricity price in the United States was considerably lower than in most of Europe. Iceland was the European country with one of the lowest electricity bills for enterprises that month. At the bottom of the ranking were also Russia, Iraq, Qatar, Argentina, and Libya. In these countries, commercial electricity prices amounted to less than *** U.S. dollars per kilowatt-hour. Household electricity prices In addition, European countries had the highest household electricity prices worldwide that month, with Italy at the top of the ranking. By comparison, Iran and Ethiopia had the lowest residential electricity prices in the world.

The average monthly price for natural gas in the United States amounted to **** nominal U.S. dollars per million British thermal units (Btu) in May 2025. By contrast, natural gas prices in Europe were about three times higher than those in the U.S. Prices in Europe tend to be notably higher than those in the U.S. as the latter benefits from being a major hydrocarbon producer. Europe's import reliance European prices for natural gas rose most notable throughout the second half of 2021 and much of 2022, peaking at over ** U.S. dollars per million Btu in August 2022. The sharp rise was due to supply chain issues and economic strain following the COVID-19 pandemic, which was further exacerbated by Russia’s invasion of Ukraine in early 2022. As a result of the war, many countries began looking for alternative sources, and Russian pipeline gas imports to the European Union declined as a result. Meanwhile, LNG was a great beneficiary, with LNG demand in Europe rising by more than ** percent between 2021 and 2023. How domestic natural gas production shapes prices As intimated, the United States’ position among the leaders of worldwide natural gas production is one of the main reasons for why prices for this commodity are so low across the country. In 2023, the U.S. produced more than ************ cubic meters of natural gas, which allays domestic demand and allows for far lower purchasing prices.

In April 2025, electricity prices in the United Kingdom amounted to **** British pounds per megawatt-hour, a decrease from the previous month. A record high was reached in August 2022 when day-ahead baseload contracts averaged ***** British pounds per megawatt-hour.
Electricity price stabilization in Europe Electricity prices increased in 2024 compared to the previous year, when prices stabilized after the energy supply shortage. Price spikes were driven by the growing wholesale prices of natural gas and coal worldwide, which are among the main sources of power in the region.

… and in the United Kingdom? The United Kingdom was one of the countries with the highest electricity prices worldwide during the energy crisis. Since then, prices have been stabilizing, almost to pre-energy crisis levels. The use of nuclear, wind, and bioenergy for electricity generation has been increasing recently. The fuel types are an alternative to fossil fuels and are part of the country's power generation plans going into the future.

In 2023, Hawaiian residents paid around 113.17 U.S. dollars per million British thermal unit for electricity, by far the highest price in the country. This was significantly more than electricity prices in California that year, which was the second most expensive U.S. state for electricity purchases. Electricity prices across economic sectors in the U.S. Residential customers in the U.S. paid the highest electricity prices compared to the other economic sectors. This commodity price in the state of Hawaii was over 25 U.S. dollar cents per kilowatt-hour above the national average of 17 U.S. dollar cents per kilowatt-hour. By comparison, the price of electricity for the industrial and the commercial sectors was considerably lower. Electricity sources in the U.S. In 2023, most of the electricity generated in the U.S. came from natural gas, with the country being a leading global producer. Due to its autonomous power sector, the U.S. experienced a relatively smaller impact on electricity prices from the 2022 energy crisis compared to other nations, particularly those in Europe. By comparison, Hawaii’s high electricity prices are a consequence of the island state’s reliance on imported oil for its power generation.

About the ProjectKAPSARC is analyzing the shifting dynamics of the global gas markets. Global gas markets have turned upside down during the past five years: North America has emerged as a large potential future LNG exporter while gas demand growth has been slowing down as natural gas gets squeezed between coal and renewables. While the coming years will witness the fastest LNG export capacity expansion ever seen, many questions are raised on the next generation of LNG supply, the impact of low oil and gas prices on supply and demand patterns and how pricing and contractual structure may be affected by both the arrival of U.S. LNG on global gas markets and the desire of Asian buyers for cheaper gas.Key PointsIn the past year, global gas prices have dropped significantly, albeit at unequal paces depending on the region. All else being equal, economists would suggest that this should have generated a positive demand response. However, “all else” was not equal. Prices of other commodities also declined while economic growth forecasts were downgraded. Prices at benchmark points such as the U.K. National Balancing Point (NBP), U.S. Henry Hub (HH) and Japan/Korea Marker (JKM) slumped due to lower oil prices, liquefied natural gas (LNG) oversupply and unseasonal weather. Yet, the prices of natural gas in local currencies have increased in a number of developing countries in Africa, the Middle East, Latin America, former Soviet Union (FSU) and Asia. North America experienced demand growth while gas in Europe and Asia faced rising competition from cheaper coal, renewables and, in some instances, nuclear. Gains to European demand were mostly weather related while increases in Africa and Latin America were not significant. For LNG, Europe became the market of last resort as Asian consumption declined. Moreover, an anticipated surge in LNG supply, brought on by several new projects, may lead to a confrontation with Russian or other pipeline gas suppliers to Europe. At the same time, Asian buyers are seeking concessions on pricing and flexibility in their long-term contracts. Looking ahead, natural gas has to prove itself a credible and affordable alternative to coal, notably in Asia, if the world is to reach its climate change targets. The future of the gas industry will also depend on oil prices, evolution of Chinese energy demand and impact of COP21 on national energy policies. Current low prices mean there is likely to be a pause in final investment decisions (FIDs) on LNG projects in the coming years.

The cost of fossil fuels in the United States electric power industry varies depending on the source that is used. In general, fossil fuels cost about 3.12 U.S. dollars per million British thermal units (Btu) in 2023, ranging from 2.36 U.S. dollars per million Btu for coal to 16.53 U.S. dollars per million Btu for petroleum. Coal and petroleum costs Of the fossil fuels used for electric power generation, petroleum costs have been the most volatile, while coal costs have remained relatively stable in comparison. Average costs of petroleum, which includes various kinds of oil, fluctuated significantly over the period of consideration and reached a peak in 2022 during the energy crisis that hit the global fossil fuels market. Natural gas price Similar to coal, natural gas prices can vary based on the region. Being a large producer of domestic natural gas, the U.S. has notably lower prices compared to Europe and Japan. Due to greater natural gas production through hydraulic fracturing, prices in the U.S. have experienced an overall decline over the last decade or so, falling to 2.4 U.S. dollars per million Btu in 2020. However, natural gas markets around the world experienced price shocks in 2021 and 2022 as a result of the Russia-Ukraine war. In the United States, average natural gas costs for use in the electric power sector more than tripled in 2022.

Electricity prices in Europe are expected to remain volatile through 2025, with Italy projected to have some of the highest rates among major European economies. This trend reflects the ongoing challenges in the energy sector, including the transition to renewable sources and the impact of geopolitical events on supply chains. Despite efforts to stabilize the market, prices in countries like Italy are forecasted to reach ****** euros per megawatt hour by February 2025, indicating persistent pressure on consumers and businesses alike. Natural gas futures shaping electricity costs The electricity market's future trajectory is closely tied to natural gas prices, a key component in power generation. Dutch TTF gas futures, a benchmark for European natural gas prices, are projected to be ***** euros per megawatt hour in April 2025. This represents an increase of about ** euros compared to the previous year, suggesting that gas prices will continue to influence electricity rates across Europe. The reduced output from the Groningen gas field and increased reliance on imports further complicate the pricing landscape, potentially contributing to higher electricity costs in countries like Italy. Regional disparities and global market influences While European electricity prices remain high, significant regional differences persist. For instance, natural gas prices in the United States are expected to be roughly one-third of those in Europe by March 2025, at **** U.S. dollars per million British thermal units. This stark contrast highlights the impact of domestic production capabilities on global natural gas prices. Europe's greater reliance on imports, particularly in the aftermath of geopolitical tensions and the shift away from Russian gas, continues to keep prices elevated compared to more self-sufficient markets. As a result, countries like Italy may face sustained pressure on electricity prices due to their position within the broader European energy market.

At 3.82 U.S. dollars per gallon in October 2022, regular all formulation retail gasoline prices in the United States were considerably lower than in Hong Kong or the Central African Republic, which reported the highest gasoline prices in the world at the end of October 2022. Norway also ranked high this year. Its high gasoline prices might be one of the reasons why the country is leading the charge towards electric mobility. Gas prices in selected countries worldwide Fuel prices in different countries range from a few cents to almost two U.S. dollars per liter. Gasoline is often regarded as a key driver of a country’s economy, as it is the main fuel used in passenger vehicles and the automotive fleets of small and large businesses. The United States is one of the biggest consumers of gasoline on a per capita basis, with approximately 356 gallons of gasoline per person in 2020. Fuel prices respond to crude oil price changes One of the liquid’s main ingredients is crude oil. The spot prices of publicly traded crudes, such as U.S.-sourced WTI (West Texas Intermediate), UK Brent, and the OPEC basket grades, are highly volatile and have proven prone to inflation as of late, most recently due to the novel coronavirus outbreak in China, blockages in the Suez Canal, and the Russian invasion of Ukraine. Where access to oil is limited, this volatility may spur a shift towards alternative propulsion systems and fuels among a growing number of vehicle drivers. Affordability of fuel Gas prices in Europe are counted among the highest worldwide. At 7.6 U.S. dollars per gallon or more, gasoline is particularly expensive in Iceland, Norway, Denmark, Greece, Finland, and the Netherlands. Car drivers in Mozambique and Madagascar feel the most pain at the pump. Some 145.7 percent of a month's wages are needed to fill up a tank in Mozambique. The low affordability of fuel is due to weak currencies, limited wage growth, and a level of prosperity that is yet to meet other markets' standards. The high price in countries such as the Netherlands and Norway is largely attributable to taxes. Other factors driving gas prices include local demand, processing and distribution costs, and the aforementioned level of crude oil prices.

UK oil and gas production has diminished over the past decade because old oil fields have matured while developing new commercially viable sources has become increasingly challenging. To combat this, extractors have pooled their resources and formed partnerships to enhance efficiency, while some have benefitted from previous investments in fields coming onstream. Oil and gas extracting companies also reaped the rewards of an upsurge in global prices through 2022-23, leading to sharp revenue growth. However, this quickly turned around in 2023-24, with most major companies’ revenue nosediving along with oil prices, as growing global oil and gas from America flooded the market, slightly outpacing demand. Revenue is expected to expand at a compound annual rate of 3.4% over the five years through 2024-25 to just over £33 billion. This includes a forecast hike of 5.3% in 2024-25; however, profit is slated to inch downward over the year as global oil and gas prices remain somewhat flat in the second half of 2024-25. Global oil and gas prices greatly affect the industry's performance, with the Organisation of the Petroleum Exporting Countries (OPEC) putting supply cuts in place and global tensions resulting in price peaks and troughs. In October 2022, OPEC instituted a supply cut of two million barrels of crude oil per day, driving Brent Crude Oil prices up to US$110 (£87.80) per barrel, which has been extended until March 2025, with a ramping up period through September 2025. This is set to keep oil prices stable by limiting global oil supplies in the face of growing production in non-OPEC countries. The sanctions on Russian oil and gas imports because of the Russia-Ukraine conflict add further impetus to prices. The EU has banned imports of Russian-made oil and gas, providing opportunities for UK exporters. Crude oil prices remain high, but significant oil production from non-OPEC countries threatening a glut in the oil market and a significant dip in global demand (especially from China) has made oil prices plummet since July 2024. Despite mounting tensions in the Middle East having the potential to cut oil supply from the region, the ongoing political tensions have yet to significantly impact global prices, with prices hiking up around 10% in the month to October 2024 but remaining relatively low. Oil and gas prices are likely to continue inching downwards in the coming years as the US is forecast to continue ramping up the global oil and gas supply. This, along with an expected drop in global demand for oil and gas in the long term, will limit growth. The UK government will implement policies to create a more favourable environment for extractors and further investment in the North Sea to improve UK energy security. However, the depletion of natural resources, the expensive cost of extraction, low gas and oil prices and the global energy transition will threaten the industry's long-term viability. The government announced a delay to the ban on the sale of new petrol and diesel cars, along with the relaxation of some net-zero policies in September 2023, which should keep fossil fuel explorers afloat for longer. Revenue is forecast to climb at a compound annual rate of 3.4% over the five years through 2029-30 to just over £39 billion.

Gasoline Prices in the United Kingdom increased to 1.84 USD/Liter in June from 1.79 USD/Liter in May of 2025. This dataset provides the latest reported value for - United Kingdom Gasoline Prices - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

United States' electricity producers paid about 2.75 U.S. dollars per million British thermal unit for natural gas in 2024. Meanwhile, coal power plant operators paid an average of 2.48 U.S. dollars. In the last decade, the price of natural gas used for electricity generation has seen a net decrease, followed by a considerable rise in 2022. Coal, on the other hand, has consistently been among the cheapest fuel types used in the power sector. Natural gas prices and the influence of oil demand As it is often produced alongside oil, prices for natural gas are shaped by overall market developments of the oil and gas industry. When an overproduction of oil led to the oil glut between 2015 and 2016, natural gas prices fell notably. The same circumstance could be observed in 2020 when a fall in oil demand brought many benchmarks such as WTI and Brent to historic lows and also resulted in the Henry Hub price falling to a 21-year low. Apart from petroleum, which is an expensive and inefficient means of power production, fossil fuel costs for electricity generation have declined since 2022. Shift away from conventional energy sources Although renewable technologies were once thought to be very expensive, greater investments have quickly rendered their levelized cost of energy generation on par with fossil fuels, especially when deployed on a utility-scale. The aging coal fleet is a prime example of the increasing necessity to switch to carbon neutral technologies. Older coal plants are dealing with increasing maintenance costs as well as environmental regulations forcing the installation of pollution controls.

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Microgrid Market Size 2025-2029

The microgrid market size is forecast to increase by USD 41.38 billion at a CAGR of 16.4% between 2024 and 2029.

The market is experiencing significant growth due to the increasing demand for reliable and resilient power infrastructure, particularly in regions prone to power outages and grid instability. Microgrids offer an attractive solution, enabling local energy generation and consumption, and ensuring uninterrupted power supply during grid failures. This trend is further fueled by rapid technological advancements, including energy storage solutions and smart grid technologies, which enhance microgrid efficiency and capabilities. However, the market growth is not without challenges. High implementation costs, primarily driven by the expensive nature of energy storage systems and advanced grid technologies, remain a significant barrier to entry. Moreover, regulatory frameworks and policy inconsistencies across various regions can hinder market expansion. Companies seeking to capitalize on the market opportunities must navigate these challenges effectively by collaborating with stakeholders, optimizing costs, and leveraging innovative business models. By doing so, they can position themselves as key players in the evolving microgrid landscape, contributing to the market's continued growth and innovation.

What will be the Size of the Microgrid Market during the forecast period?

Request Free SampleThe market is experiencing significant growth as businesses seek more efficient and sustainable energy solutions. Solar generators and energy storage systems are key components, with microgrid topologies enabling the integration of these resources into electrical networks. Fuel cells and hydrogen are also gaining traction as alternative power generation sources. Smart microgrids allow for the effective management of linked loads and peak loads, ensuring a reliable electricity supply. Microturbines and wind energy are additional micro-sources contributing to the evolution of the electric system. Hybrid microgrid networks enable the integration of renewable resources and dispersed energy resources into the main power grid. Electric grids are becoming more complex as they adapt to these advances, with solar energy and wind energy becoming increasingly important. Battery storage systems play a crucial role in energy storage and grid stability. Off-grid applications are also driving the market's growth, as businesses look to reduce their reliance on the main power grid. Overall, the market is dynamic and evolving, with a focus on optimizing energy production and consumption.

How is this Microgrid Industry segmented?

The microgrid industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. ApplicationRemoteInstitutions and campusMilitaryOthersConnectivityGrid connectedOff-grid connectedGeographyNorth AmericaUSCanadaEuropeGermanyUKMiddle East and AfricaAPACChinaIndiaJapanSouth KoreaSouth AmericaArgentinaBrazilRest of World (ROW)

By Application Insights

The remote segment is estimated to witness significant growth during the forecast period.Microgrids, comprised of solar generators, wind turbine generators, solar panels, sophisticated controllers, and energy storage devices, have gained significance in remote installations where traditional electricity supply is unreliable or inaccessible. These microgrids, including hybrid microgrids and solar-powered water pumping systems, are being adopted in villages and rural areas, particularly in countries like India, Indonesia, Bangladesh, and several African and Southeast Asian nations. Diesel generators continue to serve as a backup power source in such microgrids, but the declining cost of solar panels and advancements in energy storage technology are enabling the deployment of clean energy microgrids in regions where investments in conventional grid infrastructure are not feasible. Energy storage systems are integrated into these microgrids to reduce fuel consumption, meet peak loads, and enhance the efficiency of diesel generators. The hybrid segment of microgrids, which combines renewable energy sources and traditional power sources, is expected to witness substantial growth due to its ability to provide energy security and grid resiliency. Microgrids are also being implemented in defense bases, healthcare facilities, and data centers to ensure uninterrupted power supply and reduce carbon footprint. Grid instability and transmission losses are major challenges in the implementation of microgrids, necessitating the development of advanced monitoring systems and energy-efficient technologies. Microgrid topologies, including distributed energy resources and linked loads, are being explored to optimize e

In 2024, the price of natural gas in Europe reached 11 constant U.S. dollars per million British thermal units, compared with 2.2 U.S. dollars in the U.S. This was a notable decrease compared to the previous year, which had seen a steep increase in prices due to an energy supply shortage exacerbated by the Russia-Ukraine war. Since 1980, natural gas prices have typically been higher in Europe than in the United States and are expected to remain so for the coming two years. This is due to the U.S. being a significantly larger natural gas producer than Europe. What is natural gas and why is it gaining ground in the energy market? Natural gas is commonly burned in power plants with combustion turbines that generate electricity or used as a heating fuel. Given the fact that the world’s energy demand continues to grow, natural gas was seen by some industry leaders as an acceptable "bridge-fuel" to overcome the use of more emission-intensive energy sources such as coal. Subsequently, natural gas has become the main fuel for electricity generation in the U.S., while the global gas power generation share has reached over 22 percent. How domestic production shapes U.S. natural gas prices The combination of hydraulic fracturing (“fracking”) and horizontal drilling can be regarded as one of the oil and gas industry’s biggest breakthroughs in decades, with the U.S. being the largest beneficiary. This technology has helped the industry release unprecedented quantities of gas from deposits, mainly shale and tar sands that were previously thought either inaccessible or uneconomic. It is forecast that U.S. shale gas production could reach 36 trillion cubic feet in 2050, up from 1.77 trillion cubic feet in 2000.

European countries have some of the highest natural gas prices for households worldwide. Natural gas prices for households vary greatly around the world, depending on governmental levies, taxes, as well as local production. In Sweden, prices averaged 0.24 U.S. dollars per kilowatt-hour in December 2023, whilst prices in Canada, a producer of natural gas, were just 0.04 U.S. dollars per kilowatt-hour.

Japan and China have some of the highest spot prices for liquefied natural gas. In January 2024, customers in Japan and China paid approximately 10.05 U.S. dollars per million British thermal unit of LNG delivered. Destination markets in Europe and South America experienced slightly lower shipping costs. In the last few years, the global trade volume of LNG has increased notably, exceeding 500 billion cubic meters shipped.

LNG demand growth and largest destination markets

Increased gas demand and improved liquefaction technology has prompted growth in the gas market and the entry of new players. LNG prices were initially strongly influenced by crude oil, however, as the market grew it developed independent benchmarks. As one of the largest LNG importing countries, the price for LNG in Japan has become synonymous with the global benchmark.

Natural gas prices decreased across all major regions in 2024, as supply caught up to higher demand. In Japan, LNG sold for an average of **** nominal U.S. dollars per million British thermal units. Meanwhile, the United States, as the largest natural gas producer worldwide, has significantly lower prices for the fossil fuel. The U.S. has had lower natural gas prices than Europe for much of the past four decades. LNG on the rise LNG is expected to shape much of future natural gas trade. Although pipelines have been the preferred method of transportation for many decades, as Europe shifts away from Russia as its main gas supplier, LNG has become more in demand. The global LNG trade volume has already exceeded *** billion cubic meters per year, and is expected to continue growing. Countries in Asia have some of the highest landed prices for liquefied natural gas worldwide. Natural gas benchmarks Some of the most closely followed natural gas price benchmarks are the U.S. Henry Hub and the Dutch TTF. The former is an important indicator of the state of the natural gas industry in the U.S., while the latter reflects natural gas market developments in Europe and potential repercussions for consumers.

Hong Kong had the highest prices for premium gasoline (95-RON) on May 12, 2025. That day, prices averaged 3.44 U.S. dollars per liter, which was notably more than in any other country. While oil-rich countries enjoy some of the lowest gasoline prices, drivers in big car markets such as Europe pay around 2 U.S. dollars per liter.