Which countries have the lowest electricity prices?

Electricity prices can vary significantly from country to country. Factors such as domestic resources, government policies and economic stability can affect the cost and availability of electricity.

In some countries, electricity can be much cheaper than in others. This can stimulate the economy, boost industry and reduce the financial impact on its residents. Using the latest Global Petrol Price data, we found the countries with the lowest electricity prices and examined exactly why they can keep their energy rates so low.

Iran has the cheapest electricity prices in the world – $0.002 per kWh. Many factors contribute to Iran’s low electricity prices, including the country’s abundance of natural gas and oil. Iran has the third largest proven oil reserves and the second largest natural gas reserves in the world. Because Iran does not have to import fossil fuels like many other countries, it can supply electricity at much lower rates.

Energy in Iran is largely state-controlled, which means the government can set electricity prices without market influence, so it can keep rates low. The government heavily subsidizes electricity prices – in 2019, 19% of GDP was allocated to energy subsidies. The aim of this is to ensure affordable energy for the entire population, as well as support local industry and stimulate economic growth.

Although nuclear power and renewable energy sources currently account for only 1% of Iran’s total energy supply (TES), the country has the capacity to produce significant amounts of energy from solar energy. Iran is located near the equator and it is reported that 90% of its land area could provide solar energy for at least 300 days a year. Iran currently has a plan to bring 10,000 megawatts of renewable energy online by the end of 2025.

Syria has the second cheapest electricity price in the world – $0.003 per kWh. Like Iran, Syria has domestic resources, including oil and natural gas, which it uses to produce its own electricity, so it does not have to pay to import the resources. The energy sector is also largely controlled by the government, so prices can be set lower to make electricity more affordable for more of the population.

The Syrian government has heavily subsidized electricity prices to increase its availability. However, this puts a strain on the state budget, and the government recently began phasing out these subsidies to help improve public finances.

This is partly the result of the war that has been going on for over a decade, which has affected not only the Syrian economy but also the electricity infrastructure. The country experiences frequent power outages and unreliable energy supplies, making access to electricity limited or non-existent, even at low prices.

Cuba currently has the third cheapest electricity, costing $0.006 per kWh. Cuba has domestic resources, so it does not have to import any fuel to produce electricity, which helps keep prices low. This applies to crude oil, natural gas and renewable sources.

Renewable energy has become a priority for the Cuban government in recent years, with solar panels installed on thousands of homes and investments in wind power. The goal is for renewable sources to generate 25% of the country’s energy by 2030.

The government has also implemented programs to reduce the country’s overall energy consumption, which helps keep demand and prices low. Cuban citizens were encouraged to replace inefficient appliances with energy-saving ones and education about energy-saving practices was promoted.

However, plans were recently announced to increase electricity prices by 25% for mainstream consumers in residential areas. The measure is aimed at reducing the country’s deficit and revitalizing the economy, but it is believed that the negative effects will be felt by Cubans who are already struggling financially.

Sudan has the third cheapest source of electricity at $0.006 per kWh. Sudan’s energy sector is state-controlled, which allows the government to set prices without competition. The country has plenty of resources, including oil and natural gas. Sudan is a net energy exporter, which means it produces more energy than it needs and does not need imports to generate electricity.

However, Sudan faced serious challenges related to political instability and inadequate infrastructure. Millions of people in Sudan live below the poverty line due to the country’s economic crises, and many people have no access to electricity at all despite low prices. At the same time, the Sudanese government is increasing electricity prices in an attempt to stabilize the economy. For some social groups, after repeated adjustments, customs duties would increase by 13,000%.

Sudan is considered to have significant hydropower potential due to its location on the Nile. Not only would it be a sustainable, renewable energy source, but hydropower would also be relatively cheap once the infrastructure was in place. There are currently plans to build a Renaissance Dam in Gran Ethiopia, and although controversial on environmental and social issues, it could provide a cheap source of energy for Sudan.

Ethiopia is the third cheapest source of electricity in the world, at $0.006 per kWh. Like other countries on this list, the Ethiopian government subsidizes electricity costs in an effort to increase the availability of electricity to the wider population.

Ethiopia has some oil and natural gas, but it has plenty of renewable energy sources in which the government has invested heavily. This includes solar, wind, hydro and geothermal energy. Currently, 90% of Ethiopia’s electricity comes from hydroelectricity, 8% from wind and 2% from thermal sources.

The country has the potential to generate over 60,000 MW of electricity from renewable sources. The development of various projects involving various renewable energy sources will make it possible to meet the growing demand for electricity in a sustainable way.

Below are the ten countries with the lowest electricity prices: