Retail residential electricity prices in the United States have mostly risen over the last decades. In 2023, prices registered a year-over-year growth of 6.3 percent, the highest growth registered since the beginning of the century. Residential prices are projected to continue to grow by two percent in 2024. Drivers of electricity price growth The price of electricity is partially dependent on the various energy sources used for generation, such as coal, gas, oil, renewable energy, or nuclear. In the U.S., electricity prices are highly connected to natural gas prices. As the commodity is exposed to international markets that pay a higher rate, U.S. prices are also expected to rise, as it has been witnessed during the energy crisis in 2022. Electricity demand is also expected to increase, especially in regions that will likely require more heating or cooling as climate change impacts progress, driving up electricity prices. Which states pay the most for electricity? Electricity prices can vary greatly depending on both state and region. Hawaii has the highest electricity prices in the U.S., at roughly 43 U.S. cents per kilowatt-hour as of May 2023, due to the high costs of crude oil used to fuel the state’s electricity. In comparison, Idaho has one of the lowest retail rates. Much of the state’s energy is generated from hydroelectricity, which requires virtually no fuel. In addition, construction costs can be spread out over decades.

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 forecast 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 July 2025. 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.

Nuclear electricity generated in the United States cost 31.76 U.S. dollars per megawatt-hour in 2023. Production costs were highest in 2012, when they came to 52.83 U.S. dollars in 2023 prices, but have decreased ever since. Some 782 terawatt-hours of electricity is generated by U.S. nuclear plants every year. Capacity factor of nuclear power in the United States Among all the U.S. energy sources, nuclear power has by far the highest capacity factor and is dependable and efficient. In 2024, nuclear power reactors generated more than 92 percent of the electrical energy that could have been produced at continuous full power operation. Outage and maintenance of nuclear plants in the United States Despite having a high capacity factor, nuclear plants experienced peak average daily outages of nearly 22 gigawatts in April and October of the last few years. These outages, planned for low-demand periods, reflect necessary refueling and maintenance. As of July 2023, the average duration of these refueling outages was 34 days, illustrating the balance between high operational efficiency and periodic maintenance required to sustain reliable performance.