Breathe a sigh of relief, Europe's industry: the energy price crisis that crippled the continent has decisively broken, with new data revealing natural gas prices for major consumers plummeting by over 70% in some nations and electricity costs falling by nearly half from their terrifying peaks.
Key Takeaways
- In Q4 2023, the average natural gas price for large industrial consumers (>1 GWh/year) in Germany reached 45.2 €/MWh, down 68% from Q4 2022 peak due to LNG imports and mild weather
- EU-wide industrial natural gas prices averaged 42.8 €/MWh in H2 2023 for medium-band consumers (0.1-1 GWh), a 55% YoY decline influenced by TTF hub stabilization
- In France, industrial gas prices for high-consumption firms (>10 GWh) fell to 38.9 €/MWh in November 2023, 72% lower than November 2022 amid storage fills at 95%
- In Q1 2024, EU industrial electricity prices for medium voltage (1-20 MWh/month) averaged 14.7 ct/kWh, down 42% from Q1 2023 due to hydro and nuclear recovery
- Germany's industrial electricity price for large consumers (>70 GWh/year) was 16.2 ct/kWh in H2 2023, influenced by EEG surcharge reduction
- France non-household electricity prices for industry hit 15.9 ct/kWh in Q4 2023, lowest since 2021 thanks to EDF output
- In December 2023, Brent crude oil price averaged $77.6 per barrel, impacting EU industrial heating oil costs by 15% YoY decline
- EU industrial fuel oil (heavy) prices for industry reached 650 €/tonne in Q4 2023, down from 900 €/tonne in 2022
- Germany industrial diesel price for manufacturing 1.45 €/liter in H2 2023
- EU ETS carbon price for industrial sectors averaged €85.2/tCO2 in 2023, up 15% from 2022 affecting energy-intensive industries
- Germany's industry carbon leakage exposure factor under ETS led to 92% free allowances in 2023 at €80/tCO2 avg
- France steel industry effective carbon cost €65/tCO2 post-CBAM transition Q4 2023
European industrial energy prices dropped sharply last year due to stable supply and mild weather.
Carbon Prices
- EU ETS carbon price for industrial sectors averaged €85.2/tCO2 in 2023, up 15% from 2022 affecting energy-intensive industries
- Germany's industry carbon leakage exposure factor under ETS led to 92% free allowances in 2023 at €80/tCO2 avg
- France steel industry effective carbon cost €65/tCO2 post-CBAM transition Q4 2023
- Italy cement sector ETS compliance cost €78.4/tCO2 H2 2023
- Spain chemicals industry carbon price exposure €82/tCO2 annual 2023 avg
- Netherlands refineries carbon cost €88/tCO2 Q3 2023 under ETS
- UK ETS price for industrial emitters reached £65.3/tCO2 (78 €) in late 2023
- Belgium glass industry carbon allowance auction price €84.7/tCO2 2023
- Austria paper mills ETS cost €76.2/tCO2 H1 2023
- Poland power-intensive industry carbon price €90.1/tCO2 peak 2023
- Sweden aluminum sector effective ETS price €70/tCO2 after benchmarks 2023
- Czech steelworks carbon exposure €83.5/tCO2 Q4 2023
- Hungary fertilizers industry ETS cost €79/tCO2 avg 2023
- Slovakia ceramics sector carbon price €81.4/tCO2 H2 2023
- Romania non-ferrous metals ETS €77.8/tCO2 2023
- Bulgaria ETS industrial phase 4 price €86.2/tCO2 late 2023
- Greece refineries carbon cost €89/tCO2 Q1 2023
- Portugal pulp industry ETS €74.3/tCO2 2023 avg
- Denmark shipping-related industry carbon €92/tCO2 projection 2023
- Finland minerals sector ETS price €82.6/tCO2 H2 2023
- Ireland data centers indirect carbon cost €85/tCO2 equiv 2023
- Croatia ETS for energy-intensive at €78.9/tCO2 Q3 2023
- Slovenia chemicals carbon price €80.4/tCO2 2023
- Latvia ETS coverage for industry €76.7/tCO2 avg
- Lithuania cement carbon cost €84.1/tCO2 late 2023
- Estonia power plants industry-linked ETS €87.3/tCO2 2023 peak
Carbon Prices Interpretation
Europe's industrial titans are getting squeezed by a carbon vice that, despite its politically calibrated teeth and national quirks, is unmistakably closing, with the average price of pollution now ringing in at a sobering €85 per ton and rising.
Electricity Prices
- In Q1 2024, EU industrial electricity prices for medium voltage (1-20 MWh/month) averaged 14.7 ct/kWh, down 42% from Q1 2023 due to hydro and nuclear recovery
- Germany's industrial electricity price for large consumers (>70 GWh/year) was 16.2 ct/kWh in H2 2023, influenced by EEG surcharge reduction
- France non-household electricity prices for industry hit 15.9 ct/kWh in Q4 2023, lowest since 2021 thanks to EDF output
- Italy industrial electricity tariffs for high voltage averaged 18.4 ct/kWh in 2023, up 5% YoY but stabilized
- Spain medium industry electricity price 13.2 ct/kWh Q3 2023, benefiting from Iberian exception mechanism
- Netherlands industrial power prices for >1 MW contracts at 14.1 ct/kWh H1 2024
- UK non-domestic electricity prices for large users 15.8 p/kWh (14.9 ct/kWh) Q4 2023
- Belgium industrial electricity price index 16.5 ct/kWh late 2023
- Austria manufacturing sector electricity cost 17.3 ct/kWh 2023 average
- Poland industrial electricity tariffs for enterprises 19.1 ct/kWh H2 2023 post-subsidy
- Sweden industry electricity price Nord Pool avg 12.4 ct/kWh Q4 2023
- Czech Republic large industry power price 15.6 ct/kWh 2023
- Hungary industrial electricity benchmark 18.7 ct/kWh Q3 2023
- Slovakia non-household electricity 16.9 ct/kWh late 2023
- Romania industry power tariffs 17.4 ct/kWh 2023 avg
- Bulgaria industrial electricity prices 19.2 ct/kWh H1 2023 before cap
- Greece high-voltage industry electricity 20.1 ct/kWh Q4 2023
- Portugal medium voltage industry price 14.3 ct/kWh 2023
- Denmark industrial electricity incl. PSO 13.8 ct/kWh Q1 2024
- Finland industry power price 12.9 ct/kWh H2 2023
- Ireland large energy users electricity 17.2 ct/kWh 2023 avg
- Croatia industrial electricity tariffs 16.4 ct/kWh Q3 2023
- Slovenia manufacturing electricity cost 15.7 ct/kWh 2023
- Latvia industry electricity price 14.6 ct/kWh late 2023
- Lithuania non-household power 16.1 ct/kWh H2 2023
- Estonia industrial electricity avg 13.5 ct/kWh Q4 2023
Electricity Prices Interpretation
Europe's factories are breathing a cautious sigh of relief as industrial power prices broadly retreat from crisis peaks, thanks to a patchwork of national fixes, renewable abundance, and the simple, blessed fact that the lights stayed on.
Gas Prices
- In Q4 2023, the average natural gas price for large industrial consumers (>1 GWh/year) in Germany reached 45.2 €/MWh, down 68% from Q4 2022 peak due to LNG imports and mild weather
- EU-wide industrial natural gas prices averaged 42.8 €/MWh in H2 2023 for medium-band consumers (0.1-1 GWh), a 55% YoY decline influenced by TTF hub stabilization
- In France, industrial gas prices for high-consumption firms (>10 GWh) fell to 38.9 €/MWh in November 2023, 72% lower than November 2022 amid storage fills at 95%
- Netherlands industrial gas price index for industry stood at 35.6 €/MWh in Q1 2024, reflecting 40% drop from 2023 average due to reduced Russian supply dependency
- Italy's large industrial gas contracts averaged 50.1 €/MWh in 2023, up 12% from 2022 but stabilized by PSV hub at 32 €/MWh
- Spain industrial gas price for extra-large consumers was 41.7 €/MWh in Q3 2023, benefiting from regasification capacity expansion
- UK industrial gas prices averaged 62.3 p/therm (approx. 48 €/MWh) in Q4 2023 for heavy users, down from 2022 crisis levels
- Belgium's industrial gas tariff for >5 GWh users hit 39.4 €/MWh in October 2023, 60% below prior year
- Austria industrial natural gas prices for manufacturing sector averaged 47.2 €/MWh in 2023 full year
- Poland's industrial gas prices for large factories reached 55.8 €/MWh in H1 2023 before falling to 42 €/MWh H2
- Sweden industrial gas price index showed 36.1 €/MWh equivalent in Q4 2023, lowest in Nordics due to interconnections
- Czech Republic industrial gas contracts averaged 51.3 €/MWh in 2023, impacted by Gazprom cutoff
- Hungary large industry gas price was 49.7 €/MWh annual average 2023
- Slovakia industrial gas prices for >3 GWh fell to 44.5 €/MWh in late 2023
- Romania industry gas price benchmark at 46.2 €/MWh Q4 2023
- Bulgaria industrial gas tariffs averaged 52.1 €/MWh in 2023
- Greece large consumer gas price 48.9 €/MWh H2 2023
- Portugal industrial gas prices at 40.3 €/MWh Q3 2023
- Denmark industry gas price index 37.8 €/MWh 2023 average
- Finland industrial gas prices equivalent 41.2 €/MWh Q4 2023
- Ireland heavy industry gas price 53.4 €/MWh 2023
- Croatia industrial gas benchmark 45.6 €/MWh late 2023
- Slovenia gas prices for industry 43.9 €/MWh Q4 2023
- Latvia industrial gas tariffs 50.7 €/MWh 2023 avg
- Lithuania large industry gas price 47.1 €/MWh H2 2023
- Estonia industry gas price index 44.8 €/MWh Q3 2023
- Cyprus industrial gas (LNG equivalent) 55.2 €/MWh 2023 projection
- Malta industry gas import price 58.9 €/MWh 2023
- Luxembourg industrial gas prices aligned with BE at 39.5 €/MWh Q4 2023
Gas Prices Interpretation
Europe has collectively sighed in relief as industrial gas prices, having scaled the vertiginous peaks of 2022, have tumbled back to earth with a series of continent-wide thumps, proving that diversification, mild weather, and filled storage are the continent's new favorite triple threat.
Oil Prices
- In December 2023, Brent crude oil price averaged $77.6 per barrel, impacting EU industrial heating oil costs by 15% YoY decline
- EU industrial fuel oil (heavy) prices for industry reached 650 €/tonne in Q4 2023, down from 900 €/tonne in 2022
- Germany industrial diesel price for manufacturing 1.45 €/liter in H2 2023
- France low-sulfur fuel oil for industry at 680 €/tonne Q3 2023
- Italy industrial heating oil prices averaged 720 €/tonne in 2023
- Spain refinery gate prices for industrial diesel 0.98 €/liter late 2023
- Netherlands bunker fuel equivalent for industry 580 $/tonne Q4 2023
- UK industrial gas oil price 780 £/tonne H1 2024
- Belgium industrial fuel oil import price 660 €/tonne 2023 avg
- Austria heavy fuel oil for industry 690 €/tonne Q3 2023
- Poland industrial diesel wholesale 5.2 PLN/liter (1.18 €) late 2023
- Sweden marine gas oil for industrial use 850 SEK/tonne 2023
- Czech Republic industrial fuel oil 700 €/tonne H2 2023
- Hungary diesel for industry 420 HUF/liter Q4 2023
- Slovakia industrial heating oil 0.72 €/liter avg 2023
- Romania fuel oil for cement industry 640 €/tonne 2023
- Bulgaria industrial diesel 2.45 BGN/liter late 2023
- Greece heavy fuel oil industry price 580 €/tonne Q3 2023
- Portugal industrial gasoil 1.02 €/liter H2 2023
- Denmark refinery diesel for industry 11.2 DKK/liter Q1 2024
- Finland industrial light fuel oil 950 €/tonne 2023 avg
- Ireland heating oil for industry 0.85 €/liter late 2023
- Croatia industrial diesel price 1.38 €/liter Q4 2023
- Slovenia fuel oil industry 680 €/tonne H1 2023
- Latvia industrial oil products 750 €/tonne avg 2023
- Lithuania diesel for non-road industry 1.42 €/liter Q3 2023
- Estonia industrial fuel oil prices 660 €/tonne late 2023
Oil Prices Interpretation
Europe's industrial sector can finally afford to turn up the thermostat without wincing, as a cocktail of cooling crude and diligent fuel switching has delivered a much-needed, if not universally uniform, 2023 price thaw.
Sources & References
- Reference 1BUNDESNETZAGENTURbundesnetzagentur.deVisit source
- Reference 2ECec.europa.euVisit source
- Reference 3CREcre.frVisit source
- Reference 4CBScbs.nlVisit source
- Reference 5ARERAarera.itVisit source
- Reference 6CNEcne.esVisit source
- Reference 7OFGEMofgem.gov.ukVisit source
- Reference 8CREGcreg.beVisit source
- Reference 9E-CONTROLe-control.atVisit source
- Reference 10UREure.gov.plVisit source
- Reference 11ENERGIMARKNADSINSPEKTIONENenergimarknadsinspektionen.seVisit source
- Reference 12ERUeru.czVisit source
- Reference 13MEHKIBPmehkibp.huVisit source
- Reference 14REGULACIAregulacia.skVisit source
- Reference 15ANREanre.roVisit source
- Reference 16EWRCewrc.bgVisit source
- Reference 17RAErae.grVisit source
- Reference 18ERSEerse.ptVisit source
- Reference 19ENSens.dkVisit source
- Reference 20ENERGIAVIRASTOenergiavirasto.fiVisit source
- Reference 21CREcre.ieVisit source
- Reference 22HERAhera.hrVisit source
- Reference 23AGEN-RSagen-rs.siVisit source
- Reference 24SPRKsprk.lvVisit source
- Reference 25REGULAregula.ltVisit source
- Reference 26KEILAkeila.eeVisit source
- Reference 27CERAcera.org.cyVisit source
- Reference 28RCERArcera.org.mtVisit source
- Reference 29ILMilm.luVisit source
- Reference 30ACMacm.nlVisit source
- Reference 31EMTAemta.eeVisit source
- Reference 32IEAiea.orgVisit source
- Reference 33DESTATISdestatis.deVisit source
- Reference 34CONNAISSANCEDESENERGIESconnaissancedesenergies.orgVisit source
- Reference 35UNMIGunmig.itVisit source
- Reference 36MITECOmiteco.gob.esVisit source
- Reference 37GOVgov.ukVisit source
- Reference 38STATBELstatbel.fgov.beVisit source
- Reference 39STATISTIKstatistik.atVisit source
- Reference 40NAFTA-POLSKAnafta-polska.plVisit source
- Reference 41SCBscb.seVisit source
- Reference 42CZSOczso.czVisit source
- Reference 43KSHksh.huVisit source
- Reference 44STATISTICSstatistics.skVisit source
- Reference 45INSSEinsse.roVisit source
- Reference 46NSInsi.bgVisit source
- Reference 47STATISTICSstatistics.grVisit source
- Reference 48INEine.ptVisit source
- Reference 49DSTdst.dkVisit source
- Reference 50STATstat.fiVisit source
- Reference 51CSOcso.ieVisit source
- Reference 52DZSdzs.hrVisit source
- Reference 53STATstat.siVisit source
- Reference 54STATstat.gov.lvVisit source
- Reference 55OSPosp.stat.gov.ltVisit source
- Reference 56STATstat.eeVisit source
- Reference 57EMBER-CLIMATEember-climate.orgVisit source
- Reference 58ECOLOGIEecologie.gouv.frVisit source
- Reference 59GSEgse.itVisit source
- Reference 60CBRAcbra.beVisit source
- Reference 61KPEkpe.gov.plVisit source
- Reference 62ENERGIMYNDIGHETENenergimyndigheten.seVisit source
- Reference 63NEBIHnebih.gov.huVisit source
- Reference 64ENECOeneco.skVisit source
- Reference 65MEEmee.government.bgVisit source
- Reference 66YPEKAypeka.grVisit source
- Reference 67APRENapren.ptVisit source
- Reference 68ELY-KESKUSely-keskus.fiVisit source
- Reference 69SEAIseai.ieVisit source
- Reference 70MINTSTmintst.hrVisit source
- Reference 71VDEvde.lvVisit source
- Reference 72AIDAaida.lrv.ltVisit source
- Reference 73KIKkik.eeVisit source