Industrial electricity prices including electricity tax reached ***** cents per kilowatt-hour in Germany, as of March 2025. Figures fluctuated during the specified timeline. The largest share of industrial electricity costs was due to energy procurement, network charges and distribution.

German industrial electricity costs are made up of several components. The largest of these is a combination of energy procurement, network charges, and distribution. Thus far in 2024, this accounted for around **** percent of costs.  What is industrial electricity? Industrial electricity is an extremely broad field, covering electrical power used in production and manufacturing. These are industrial processes. Industrial electrical systems are considerably more complex than those used for residential and commercial purposes, as industrial use by definition includes different types and volumes of demand, operation, and maintenance. Systems in residential buildings require less voltage and are developed for smaller spaces. Commercial electricity is used to power the work of businesses and commercial real estate. Rising electricity prices have been an issue for industries, businesses, and private households around the world since the global energy crisis. As of 2024, commercial electricity prices were noticeably higher than industrial.   Electricity generation in Germany Various energy sources are used to generate electricity in Germany. Not all of them are renewable, or at least the complete energy transition has not happened yet. The leading sources used for electricity generation are wind, lignite (brown coal), and natural gas. Domestic production figures for the latter have been decreasing, thus consequently making Germany reliant on gas imports from other countries. 

Germany Electricity decreased 33.72 EUR/MWh or 29.14% since the beginning of 2025, according to the latest spot benchmarks offered by sellers to buyers priced in megawatt hour (MWh). This dataset includes a chart with historical data for Germany Electricity Price.

Industrial electricity prices for those businesses with an average annual consumption between 500 and 2,000 megawatts amounted to around ** euro cents per kilowatt hour. This was a significant increase compared to the year before. The large increase in 2022 and 2023 is due to the effects of the Russia-Ukraine war, as prices for raw materials such as gas and coal have risen sharply.

Against the backdrop of climate change, continuously increasing environmental awareness among consumers and strict guidelines regarding environmental protection, energy suppliers are being forced to implement capital-intensive, technologically complex restructuring measures as part of the energy transition. This is particularly the case at the production level, but also with regard to the expansion of transmission and distribution networks. Industry revenue generated by the generation, transmission, distribution and trading of electricity grew by an average of 4.2% per year in the period from 2020 to 2025. In the current year, sales are expected to fall by 3.7% to €788.6 billion. The reason for the decline in turnover is the expected fall in electricity consumption and lower electricity prices, which are also likely to result in a slight decrease in the profit margin.With Germany phasing out nuclear power in April 2023 and coal-fired power generation by 2038, industry players have already invested continuously in the construction of wind and solar power plants and other technologies for environmentally friendly power generation in recent years. The growth in industry turnover in 2021 and 2022 is partly due to the rising electricity price and partly to the temporary increase in electricity consumption. In 2020, the increase in electricity consumption in private households was unable to offset the lower electricity demand in industry due to the pandemic. Supply chains were disrupted by the coronavirus pandemic and production in some manufacturing industries was temporarily curtailed or stopped completely. This in turn led to lower production volumes and a decline in electricity consumption. In 2022, the war in Ukraine contributed to an increase in electricity production costs, which were passed on to the consumer markets. At the same time, electricity consumption in industry increased. Since 2023, both prices and electricity consumption as well as industry turnover have been declining.For the period from 2025 to 2030, IBISWorld is forecasting average revenue growth of 1.9% per year to €865.2 billion. In order to remain competitive, industry players will have to invest in renewable energies, storage systems and innovative technologies in the future - including smart devices or applications that use intelligent data collection and analysis methods to ensure the most efficient energy supply possible. The power outage in Spain and Portugal in April 2025 was a warning of how crucial networking, redundancy and flexible backup mechanisms are for the stability of a modern power grid. It has been confirmed that the strong integration into the European grid, technical precautions and ongoing monitoring minimise the risk of a comparable blackout in Germany. Automatic protection systems, rapid response options and the ability to gradually rebuild the grid therefore remain key tasks for the future of the German electricity supply.

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.

Germany DE: Industry Electricity Price: USD per kWh data was reported at 0.210 USD/kWh in 2021. This stayed constant from the previous number of 0.210 USD/kWh for 2020. Germany DE: Industry Electricity Price: USD per kWh data is updated yearly, averaging 0.145 USD/kWh from Dec 1990 (Median) to 2021, with 32 observations. The data reached an all-time high of 0.210 USD/kWh in 2021 and a record low of 0.080 USD/kWh in 2000. Germany DE: Industry Electricity Price: USD per kWh data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Germany – Table DE.OECD.GGI: Environmental: Environmental Policy, Taxes and Transfers: OECD Member: Annual.

Germany - Electricity prices: Non-household, medium size consumers was EUR0.20 Kilowatt-hour in December of 2024, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Germany - Electricity prices: Non-household, medium size consumers - last updated from the EUROSTAT on July of 2025. Historically, Germany - Electricity prices: Non-household, medium size consumers reached a record high of EUR0.20 Kilowatt-hour in December of 2024 and a record low of EUR0.08 Kilowatt-hour in December of 2017.

According to a recent forecast, industrial electricity prices in Europe in 2030 will be lowest in Germany if an electricity price compensation for companies is enacted. France will account for the second-lowest electricity price for enterprises if the ARENH tariff program is maintained. In the ARENH program, businesses have access to nuclear power at a regulated tariff.

Germany - Producer prices in industry: Electricity, gas, steam and air conditioning supply was 152.90 points in May of 2025, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Germany - Producer prices in industry: Electricity, gas, steam and air conditioning supply - last updated from the EUROSTAT on August of 2025. Historically, Germany - Producer prices in industry: Electricity, gas, steam and air conditioning supply reached a record high of 244.80 points in September of 2022 and a record low of 44.40 points in March of 2000.

This dataset provides values for ELECTRICITY PRICE reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

The sector for generating electricity, heating and cooling from renewable energy sources has grown significantly over the past ten years in terms of turnover, the number of industry players and the amount of energy generated. This growth has been driven by the energy transition and the goal of climate neutrality by 2035. In order to achieve this goal, the industry receives extensive subsidies, the distribution of which is regulated by the German Renewable Energy Sources Act (EEG). In the period from 2019 to 2024, industry turnover increased by an average of 3.8% per year. In the current year, industry turnover is expected to increase by 4.8% to 84.2 billion euros.In addition to the amount of energy generated from wind, water, solar radiation, biomass and geothermal energy and the level of general electricity consumption, environmental awareness in politics and society as well as competition from fossil fuels and nuclear power are important factors influencing the development of industry sales. Since 2019, public awareness of the importance of environmental and climate protection has grown continuously, which has had a positive impact on the demand for green electricity and on companies' investments in the use of renewable energies. Emissions trading and CO2 pricing have made energy generation from fossil fuels more expensive in recent years, while the cost of generating electricity from renewable energies has fallen. The nuclear phase-out in April 2023 and the coal phase-out by 2038 will further weaken the competition facing the industry. At the same time, there is increasing pressure to accelerate the expansion of renewable energy plants so that Germany's entire energy requirements can be covered by renewables in just a few years' time.As technological progress will lead to further cost reductions and efficiency increases in the industry's systems in the coming years and the expansion target for renewable energies has been significantly increased by the German Renewable Energy Sources Act (EEG) 2023, IBISWorld is forecasting average annual sales growth of 7.2% for the period from 2024 to 2029. Accordingly, industry turnover is expected to amount to 119.1 billion euros in 2029. The number of industry players and employees in this sector is also expected to increase further.

Germany's electricity prices is forecast to reach a two-year high of ***** euros per megawatt-hour in February 2025 before increasing to 94 euros per megawatt-hour in June the same year. Electricity prices in the country have not yet recovered to pre-pandemic levels. Electricity price recovery German electricity prices began recovering back to pre-energy crisis levels in 2024, a period driven by a complex interplay of factors, including increased heating demand, reduced wind power generation, and water scarcity affecting hydropower production. Despite Germany's progress in renewable energy sources, with over ** percent of gross electricity generated from renewable sources in 2023, the country still relies heavily on fossil fuels. Coal and natural gas accounted for approximately ** percent of the energy mix, making Germany vulnerable to fluctuations in global fuel prices. Impact on consumers and future outlook The volatility in electricity prices has directly impacted German consumers. As of April 1, 2024, households with basic supplier contracts were paying around ** cents per kilowatt-hour, making it the most expensive option compared to other providers or special contracts. The breakdown of household electricity prices in 2023 showed that supply and margin, along with energy procurement, constituted the largest controllable components, amounting to **** and **** euro cents per kilowatt-hour, respectively. While prices have decreased since the 2022 peak, they remain higher than pre-crisis levels, underscoring the ongoing challenges in Germany's energy sector as it continues its transition towards renewable sources.

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.

The gas supply industry is one of the infrastructure sectors in Germany and comprises the production and distribution of gas to end consumers. In Germany, private households primarily use gas for heating and cooking, while in industrial production it is used to generate process heat and electricity and as a raw material in the chemical industry. Accordingly, industry turnover is closely linked to the number of private households, their gas consumption and the production volume.Since only negligible quantities of natural gas are now being produced in Germany due to declining natural gas reserves and increasingly difficult extraction conditions, industry players are heavily dependent on foreign gas suppliers. Due to the high dependency on imports, gas suppliers only have limited negotiating power despite long-term supply contracts. They are also heavily dependent on trading prices for crude oil and natural gas due to their high dependence on imports. If global market prices rise and import prices rise accordingly, the gas suppliers pass this on to the end consumer due to the limited scope for price increases and negotiations. Nevertheless, the profit margin of gas supply companies has fallen since 2020 and was even negative in 2022 due to the low gas supplies from Russia as a result of the outbreak of war in Ukraine. The significant increase in the price of gas in 2022 led to significant revenue growth, with industry revenue increasing by an average of 14.5% per year between 2020 and 2025. As the global market for natural gas eased, industry turnover has been declining again since 2023 and is expected to fall by 3.1% to €115.5 billion in the current year as well.The easing of trading prices for natural gas is likely to continue in the coming years and, together with falling gas consumption, cause a decline in industry turnover by an average of 1.7% per year to 105.9 billion euros in 2030. The decline in turnover will be accelerated, among other things, by the fact that natural gas is to be replaced as a fuel and heating source by renewable, more environmentally friendly energy sources in the long term. This would reduce the demand from private and industrial consumers for the supply of natural gas via pipeline networks and put pressure on the turnover of gas suppliers. Gas suppliers are already working intensively on constructing new pipelines for the transport of gases such as hydrogen or converting existing gas networks. However, it will be several years before the pipeline network can be utilised on a large scale.

Non-residential electricity prices in the Nordics countries ranged between 9.76 euro cents per kilowatt-hour in Iceland and 16.8 euro cents per kilowatt-hour in Denmark, for an annual consumption lower than 2,000 megawatt-hours. Despite accounting for the highest electricity price for non-household consumers in the Nordics, Denmark's industrial electricity prices were considerably lower than in other European countries, such as Italy or Germany.

The turnover of German industrial gas manufacturers increased by an average of 5.6% per year between 2020 and 2025. This growth was largely due to the sharp increases in electricity and natural gas prices, which the industry was largely able to pass on to customers due to the costly logistics alternatives that are usually difficult to realise in the short term. Demand for medical speciality gases was high during the pandemic and partially compensated for the decline in demand from the manufacturing industry. The strong focus on high-quality speciality gases for medical applications and cutting-edge technologies also demonstrated the industry's resilience in volatile markets. Technical and economic hurdles in the import of industrial gases are leading to an increase in demand for on-site gas solutions. In view of the complex, cost-intensive and uncertain import logistics, more and more German companies are focussing on independent production directly at their production site. In the current year, industry turnover is expected to fall by 0.5% compared to the previous year and amount to around 2.7 billion euros in 2025. Demand from the manufacturing sector, particularly the mechanical engineering and chemical industries, will remain at a low level. Despite an easing of energy prices compared to the record levels of 2022, they remain well above pre-crisis levels and are exerting considerable pressure on profit margins, which are likely to more than halve compared to the record year 2020. In addition to the high energy costs, the length and complexity of approval procedures for the construction of new production facilities and government administrative procedures also represent locational disadvantages for Germany. In the long term, the high location costs could lead to the relocation of particularly energy-intensive production steps abroad. The outlook for the coming years is mixed. The industry expects average sales growth of 3% per year until 2030, which corresponds to a forecast industry volume of €3.2 billion in 2030. Germany's national hydrogen strategy, which provides for high levels of investment in the construction of large production facilities and state subsidies for green hydrogen, is seen as a key growth driver. Industrial gases will also continue to gain in importance as a key element for innovative manufacturing processes, for example in the production of new materials such as carbon nanotubes or for use in bioreactors. However, production in Germany remains heavily dependent on the continuing high prices of energy and raw materials. Without sustained relief, there could be further specialisation in high-priced specialty gases, while energy-intensive basic products, including green hydrogen, increasingly migrate to foreign markets.

The electrical installation sector has developed positively over the past five years. The most important growth driver was the good construction industry until 2022, which experienced a strong upturn due to high demand for housing even during the pandemic. Only in 2023, when the European key interest rate was raised again for the first time since 2016 after a period of low interest rate policy and reached a high of 4.5% to combat rising inflation, did construction activity in Germany slow down significantly. This also had a negative impact on growth in the sector. Despite the slowdown in construction activity, turnover in the electrical installation sector has risen by an average of 3.4% per year to 47 billion euros over the last five years. This development is primarily due to the nationwide efforts towards the energy transition and the favourable construction climate at the beginning of the five-year period. A slight decline of 1% is expected in the current year. The order situation is likely to decline slightly in view of the gloomy business climate and lower consumer confidence. Profit margins are currently likely to fall slightly due to increased price competition within the industry.The industry is also likely to continue to grow in the next five years, albeit at a slightly slower rate than in the past five years. Turnover is expected to increase by an average of 3% per year to 54.5 billion euros in 2030. Technological change and rising energy costs will prompt private households and companies to upgrade or renew their existing infrastructure. For example, intelligent sensors can be used to exploit optimisation potential in order to reduce electricity consumption. Smart homes will play an important role here. In addition, the topic of renewable energies is increasingly coming into focus and offers growth potential. For example, photovoltaic systems are increasingly being installed in private households. Electrical installers can benefit from this as they install these systems. On the other hand, the increasing shortage of skilled labour poses a risk to growth in the sector in the coming years. If electrical companies have difficulties finding qualified employees, they will not be able to offer their full range of services. This leads to bottlenecks and delays that could hinder growth in the future.

Germany - Producer prices in industry: Mining and quarrying; manufacturing; electricity, gas, steam and air conditioning supply was 122.80 points in April of 2025, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Germany - Producer prices in industry: Mining and quarrying; manufacturing; electricity, gas, steam and air conditioning supply - last updated from the EUROSTAT on June of 2025. Historically, Germany - Producer prices in industry: Mining and quarrying; manufacturing; electricity, gas, steam and air conditioning supply reached a record high of 132.30 points in September of 2022 and a record low of 69.50 points in February of 2000.

Electricity generation from wind power has seen fluctuations in sales over the past five years due to major upheavals on the electricity market with sharp changes in electricity prices. Overall, wind power has recently become the most important source of energy in Germany in terms of the amount of electricity fed into the grid. In addition to the expansion of onshore wind power, the installed capacity of offshore wind turbines in particular has increased since 2009. Since 2019, industry turnover has increased by an average of 1.4 % per year. In 2024, turnover from electricity generation from wind power in Germany is expected to increase by 7.6% to 17 billion euros.In the area of electricity generation, the energy transition, i.e. the switch to renewable energy sources, must make an important contribution to reducing greenhouse gas emissions. However, the construction of wind turbines is sometimes met with resistance from the local population. If their environmental awareness increases, as has been the case this year, acceptance of the expansion of wind power is likely to grow, which will have a positive impact on the industry. In addition, higher electricity consumption in Germany increases the incentive to expand renewable energy sources more quickly. The same applies to an increase in the number of electric vehicles on German roads, as these can only be operated in a climate-friendly manner when charged with green electricity. Extreme weather events in turn pose a risk for the industry. In extreme wind speeds, wind turbines often have to be switched off or run the risk of being damaged.The German government's increased expansion targets for wind power offer the industry great sales potential. From 2024 to 2029, industry turnover is therefore expected to increase by an average of 7.7% per year. This means that the turnover generated by electricity generation from wind power in Germany is expected to reach 24.7 billion euros in 2029. However, the rapid and strong expansion of wind power and the general expansion of renewable energies also brings with it problems. Fluctuating electricity production means that large capacities of energy storage solutions are required. The different expansion of wind power in northern and southern Germany also requires an expansion of the power lines between these regions.