In this brief article, we’ll discuss the top 5 countries where electricity is the cheapest. If you want more insights into how certain countries are able to keep their power affordable, read 20 Countries With the Cheapest Electricity in the World.
5. Libya
Electricity Cost in Cents per Kilowatt-Hour (kWh): 0.8
Libya, home to some of Africa’s largest oil reserves, subsidizes electricity costs using this wealth, making it more affordable for its citizens. The country’s electricity generation is primarily based on fossil fuels, especially oil and natural gas, which are abundantly available and inexpensive domestically. The reliance on local fossil fuel sources minimizes the need for costly imports, leading to lower electricity costs. However, the ongoing conflict in Libya has significantly damaged its energy infrastructure, including power plants and transmission lines, causing reduced generation capacity and frequent power outages.
4. Sudan
Electricity Cost in Cents per Kilowatt-Hour (kWh): 0.8
Sudan capitalizes on its geographical advantages, particularly the Nile River, to develop hydroelectric power stations. The most significant of these is the Merowe Dam, with a total installed capacity of 1250 megawatts. This dam has doubled the country’s power generation capacity since becoming operational. The country’s focus on hydroelectric power capitalizes on the consistent flow of the Nile. Abundant hydroelectricity not only supports sustainable energy but also helps in reducing greenhouse gas emissions compared to fossil fuel-based power generation.
3. Ethiopia
Electricity Cost in Cents per Kilowatt-Hour (kWh): 0.6
Ethiopia has the potential to generate over 60,000 megawatts (MW) of electric power from various sources, including hydroelectric, wind, solar, and geothermal. Currently, the country boasts approximately 4,500 MW of installed generation capacity, with plans to increase this to 17,000 MW in the next ten years, according to the International Trade Administration. However, with a population of 126 million, Ethiopia faces growing electricity demand, making the expansion of power generation facilities essential.
2. Syria
Electricity Cost in Cents per Kilowatt-Hour (kWh): 0.5
The low cost is primarily due to the country’s dependence on fossil fuels for electricity generation. As of 2016, fossil fuels accounted for 95% of Syria’s total electricity generation, with the remaining 5% coming from hydroelectric sources. Renewable energy, particularly solar and wind, presents a promising avenue for Syria, given its geographical location. The country receives ample sunlight throughout the year, making it an ideal candidate for solar power generation.
1. Iran
Electricity Cost in Cents per Kilowatt-Hour (kWh): 0.2
The low pricing in Iran results from substantial subsidies provided by the Iranian government, a long-standing policy. As of 2022, about 94% of Iran’s electricity was generated from fossil fuels, with natural gas comprising 79%, other fossil fuels 15%, and coal a mere 0.2%. The remaining electricity was produced from hydroelectric power (4.5%) and nuclear energy (1%). Iran’s ability to maintain low electricity prices is largely due to its heavy reliance on fossil fuels, particularly natural gas, supported by the country’s abundant natural resources.
Join a community of savvy investors and finance professionals by subscribing to the Insider Monkey newsletter. Enter your email address below to access exclusive insights, expert analyses, and the latest trends in finance and investment. You can also read 30 Countries with the Highest Gas Prices and 15 States With the Most Expensive Gas in the US.
