Electricity Prices by Country
If you are asking yourself why prices in Germany are so high: It&#x27;s mostly the price surge of natural gas after Russia cut off deliveries in retaliation to sanctions in the wake of the war against Ukraine.<p>About 50% of the price per kw&#x2F;h in Germany is set by an auction system. Electricity providers are bidding at any given point in time to provide energy for the grid. The lowest price per kw&#x2F;h wins. BUT: because no one provider can satisfy the demand on their own, all bids that are necessary to satisfy the demand are considered and the final price is set by the most expensive bid within that range. So even if a wind turbine can provide energy at 9 cents per kw&#x2F;h, if current demand requires electricity from a natural gas plant at 20 cents per kw&#x2F;h, all providers within the bracket will get those 20 cents per kw&#x2F;h from the consumer.<p>Natural gas has become quite expensive for the past year in Germany and for various reasons, natural gas plants are often the marginal providers in the German network.<p>The other half of the final price is split about 50&#x2F;50 between the owners of the network and taxes.