No matter where you live, paying for electricity is unavoidable. Whether you’re in the United States, Canada, India, China, Australia or the Maldives, the cost of electricity is still present. What differs, however, is the price you’ll pay per unit (or kilowatt-hour (kWh).
According to Shrink That Footprint.com, “about 80% of people in the world have access to electricity. This figure has increased in the last decade, mainly due to increasing urbanization.”
This week’s blog focuses on how energy prices differ from country to country. Curious to know which country has the lowest electricity costs? What about which is the most expensive? First, let’s review why energy prices fluctuate.
Why Does the Price of Electricity Vary?
Everything from a particular country’s natural resources and local weather, to the taxes imposed by the local government affects the price of energy. And of course, there’s the omnipresent issue of supply and demand.
Country Cost Comparison: Electricity
Canada, for example, happens to have lower cost energy due to the country’s massive amounts of hydropower and its use of other, low-cost, alternative energy sources, like solar and wind.
Australia, on the other hand, is one of the most expensive countries in terms of energy pricing. Although there is an abundance of coal in Australia, there are high taxes imposed on consumption.
Saudi Arabia’s energy costs are significantly lower than most. As the country is mostly desert, the amount of sunlight is relatively constant, and they can therefore capitalize on solar energy. Not to mention that they are one of the world’s biggest suppliers of crude oil, which can always be used for energy production.
Iceland, which sits on a high concentration of volcanoes, relies heavily on its massive geothermal energy sources. The majority of Iceland’s electricity, however, is generated from hydropower, and when it comes to energy, the country plans to operate as a fossil-free-nation in the near future.
The United States also maintains a relatively inexpensive price on energy, due to the abundance and low cost of natural gas and the use of a combination of different sources of energy: from renewable, alternative options, to coal, natural gas and other fossil fuels.
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