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International electricity
price comparison

Client

Österreichs Energie – Forschung & Innovation

Year

2025


How do electricity prices affect the competitiveness of industry?

In order to assess the development of energy prices in an international comparison and their impact on the competitiveness of the Austrian economy, Österreichs Energie – Forschung & Innovation commissioned Prognos to conduct an international electricity price comparison. We also examined possible government instruments to strengthen the competitive position of Austrian companies for the study.

Electricity costs only significant for competitiveness in isolated cases

The international electricity price comparison revealed the following key points:

  • Electricity prices in the EU are significantly higher than in the USA and China. However, the electricity systems in Europe, the USA and China are not comparable. China's market is state-controlled. The electricity supply in the USA is significantly less reliable.
  • Industrial electricity prices in Austria are in the European midfield.
  • Electricity costs are currently only of minor importance for the competitiveness of Austrian industry (electricity costs account for less than one percent of sales on average). Personnel costs (between 10 and 25 per cent) usually account for a significantly higher share of turnover than electricity costs. Exceptions are the chemical industry and parts of the mineral industry (up to 18 per cent share of electricity costs).
  • However, the necessary increase in electrification is expected to lead to a rise in the share of electricity costs, while other fuel costs are expected to fall.

Targeted instruments: expansion of renewables and electricity price compensation

The necessary transformation of industry includes comprehensive electrification. This means that an increase in the share of electricity costs is to be expected in almost all sectors. Low electricity costs and greater efficiency of electricity-based technologies can create incentives to implement electrification measures quickly. 

The general level of electricity prices can be reduced in the long term by expanding renewable energy and reducing fossil fuel-based energy production.

In the assessment of government instruments for improving the competitive situation, the Electricity Cost Compensation Act (SAG) comes out on top. It is targeted and addresses those businesses in whose production electricity costs are highly relevant.

Links and downloads

To the study (PDF)

Project team: Jana Carola Breitenstein, Sven Kreidelmeyer, Dr Fabian Muralter

Last update: 16.05.2025

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