How Much Does Power Cost? Electricity Rates Around the Globe

Electricity prices differ greatly across the world, reflecting each country’s unique energy resources, infrastructure, and policies. Rates range from as low as 0.01 NZD/kWh in Turkmenistan to as high as 0.84 NZD/kWh in Bermuda. In comparison, New Zealand’s average electricity price sits at 0.36 NZD/kWh — slightly above the global average of 0.31 NZD/kWh.

Methodology: Prices were collected in September 2025 and are updated every six months. Calculations are based on a standard household with a 5 kVA connection. The value represents the cost of the 300th kWh consumed in a month in the capital city, converted to NZD at the exchange rate on the meter reading day.

How does New Zealand compare globally?

With an electricity price of 0.36 NZD/kWh in November 2025, New Zealand ranks around the middle of the global scale. The global average electricity price is 0.31 NZD/kWh, which means New Zealand’s electricity prices are slightly higher than the worldwide mean.

The reason isn’t waste or inefficiency, it’s how the country produces its power. New Zealand relies mostly on renewable energy from hydro, wind, and geothermal sources. These are clean and sustainable, but they also require constant investment in maintenance, infrastructure, and new technology. Add in the cost of delivering electricity across long distances and smaller regional networks, and prices naturally edge up.

By comparison, countries with cheaper power often depend on fossil fuels or government subsidies that keep prices low but come with higher environmental costs or less reliable supply.So while New Zealand’s electricity might not be the cheapest, it’s among the cleanest and most dependable in the world, a fair trade-off for energy that’s both sustainable and secure.

Overall, New Zealand’s electricity prices reflect its commitment to renewable energy and reliable service rather than cheap fossil fuels. While its rates sit above the global average, they remain competitive among developed nations and demonstrate the balance between sustainability, reliability, and affordability.

The highest electricity price in Oceania is in Australia, where prices reach 0.37 NZD/kWh, this is 3.03% higher than in New Zealand.

Why? Several factors contribute to this difference. Australia still relies heavily on fossil fuels like coal and gas, and rising global fuel prices increase wholesale electricity costs.

Transmission and distribution costs are also high due to the country’s vast geography, requiring long-distance networks and extensive maintenance. Ageing infrastructure and investments in renewable energy and storage add to the short-term costs, even as they aim to ensure a reliable and sustainable supply.

Market volatility, policy requirements, and extreme weather events, such as heatwaves and bushfires, can cause price spikes and increase overall costs. Altogether, these factors explain why electricity prices in Australia are higher than in New Zealand, despite similar energy consumption patterns.

Prices in Oceania for the cheapest countries are: Papua New Guinea, New Zealand and Australia.

The highest electricity price in North America is in Bermuda, where prices reach 0.84 NZD/kWh. This is 134.69% higher than in New Zealand.

Why? The main reason is that the island imports almost all its fuel for electricity, so global oil and diesel prices directly affect bills. The local utility passes these costs straight to consumers through a fuel adjustment rate. On top of that, Bermuda’s small population makes generation and network costs higher per household, and the island needs extra investment to protect the grid from hurricanes. Renewable energy is harder and more expensive to implement, so most electricity still comes from imported fuels. All these factors combine to make electricity very costly for residents.

In North America, the cheapest countries are: Trinidad & Tobago, Mexico and Dominican Republic.

The highest electricity price in South America is in Chile, where prices reach 0.49 NZD/kWh,this is 37.38% higher than in New Zealand.

Why? One of the main reasons is the country’s reliance on imported fossil fuels, especially natural gas and coal, for electricity generation. Global fuel price fluctuations directly affect the cost of electricity for households.

Chile’s geography also plays a role. The country is long and narrow, which makes building and maintaining transmission networks costly, especially to connect distant cities and remote mining regions. Seasonal droughts can reduce hydroelectric output, which is a major source of Chile’s electricity, forcing the use of more expensive thermal generation.

Additionally, Chile has been investing heavily in renewable energy, like solar and wind, to reduce dependence on imports. While these projects help diversify supply, the upfront costs of building and integrating renewables add to short-term electricity prices. Regulatory costs and taxes further increase the final price that consumers pay.

In South America, the cheapest countries are: Paraguay, Suriname and Argentina.

The highest electricity price in Europe is in Germany, where prices reach 0.81 NZD/kWh, this is 126.16% higher than in New Zealand.

Why?The main reason is the country’s high taxes and environmental levies, which make up a large share of household electricity bills. These charges help fund renewable energy programs, grid expansion, and energy transition policies under the Energiewende plan.

Germany’s shift away from nuclear and coal power has increased reliance on renewable sources like wind and solar. While cleaner, these sources require major investments in new infrastructure, storage, and grid stabilization, which raise costs in the short term. The country also depends partly on imported natural gas, making prices sensitive to global market changes and geopolitical tensions, such as the energy crisis following reduced Russian gas supplies.

In Europe, the cheapest countries are: Turkey, Ukraine and Georgia.

The highest electricity price in Asia is in Lebanon, where prices reach 0.72 NZD/kWh, this is 100.34% higher than in New Zealand.

Why? Lebanon has the most expensive electricity in Asia. The country depends almost entirely on imported fuel to generate power, and global price increases have made this extremely costly. With limited local resources and a national grid that provides only a few hours of power each day, most people rely on private diesel generators, which charge much higher rates.

Lebanon’s economic crisis and currency collapse have pushed costs even further, as fuel and spare parts must be bought in foreign currency. Years of underinvestment and corruption have also weakened the electricity system, making production and delivery inefficient.

In Asia, the cheapest countries are: Turkmenistan, Bahrain and Kuwait.

The highest electricity price in Africa is in Comoros, where prices reach 0.72 NZD/kWh, this is 100.34% higher than in New Zealand.

Why? Mainly because it relies almost entirely on imported fuel to produce power. The small island nation has no significant oil, gas, or coal resources, so all the fuel used in its diesel generators must be shipped in, often at high cost. Global fuel price changes directly affect local electricity rates.

The country’s electricity infrastructure is limited and outdated, leading to frequent outages and high maintenance costs. Because demand is relatively low and spread across several small islands, it’s hard to achieve economies of scale — meaning the cost of generation and distribution per household is much higher than in larger countries.

Comoros also faces logistical and financial challenges, such as expensive transportation, limited storage capacity, and dependence on subsidies to keep power plants running. Investments in renewable energy have been slow, so reliance on imported diesel continues to drive up prices.

In Africa, the cheapest countries are: Sudan, Angola and Ethiopia.

Which countries have the cheapest electricity?

The countries with the lowest electricity prices globally are Turkmenistan (0.01 NZD/kWh), Sudan (0.01 NZD/kWh) and Bahrain (0.02 NZD/kWh). For the best combination of cost and reliability, focus on countries where electricity is affordable and outages are rare. The top three countries meeting these criteria are Bahrain, Qatar and Oman. These are nations where electricity is often subsidized and extremely cheap for residents.

In New Zealand, the cost per kWh is 0.36 NZD/kWh, while taxes and government levies typically account for 25–30% of the final bill. The final electricity cost remains competitive while providing reliable supply.

Electricity Rates Prices by Continent

How was this calculated? We took the average national electricity prices for each continent. Continental definitions follow the UN classification, so Central America is included in North America. Asia generally has the cheapest electricity due to abundant hydrocarbon producers, while Europe, relying on imports and higher taxes, has the highest prices.

Electricity Prices and Market Liberalization

We categorized countries into liberalized and non-liberalized markets. Partially liberalized countries like the USA and Canada are included as liberalized.

Liberalized markets show approximately twice the price of non-liberalized markets. However, these countries tend to be developed economies with very reliable electricity supply.

New Zealand and Australia have largely liberalized markets, where multiple companies compete to generate and sell power. This encourages efficiency and renewable energy growth, but prices can fluctuate with fuel costs and market demand. In contrast, smaller Pacific nations like Papua New Guinea or Fiji often have state-controlled electricity systems. These keep prices lower through government regulation or subsidies, but limited investment and aging infrastructure can make supply less reliable.

Electricity Prices and Power Outages

Among the 10 countries with the cheapest electricity, 9 experience frequent power outages. Higher-quality service is usually reflected in higher prices, as seen in the table below:

Analysis shows a contrast between wealthier, liberalized countries with higher but stable electricity prices and countries with monopolized, cheaper yet less reliable supply.

When comparing electricity reliability across Oceania, New Zealand and Australia lead the region, offering some of the most stable power supplies in the Southern Hemisphere. New Zealand records an average of less than two hours of outages per customer per year, while Australia experiences around three to four hours—still very low by international standards. Both countries maintain this reliability through strong regulation, diversified energy sources, and heavy investment in modern grid infrastructure.

However, their systems differ in structure and cost. New Zealand’s power is around 80–85% renewable, dominated by hydro, geothermal, and wind energy. This clean mix keeps long-term costs stable but requires constant infrastructure investment. Australia, by contrast, relies more heavily on coal and natural gas, making it more vulnerable to global fuel price swings.

In comparison, many Pacific island nations including Papua New Guinea, the Solomon Islands, Fiji, and Vanuatu, face a different reality. Frequent and prolonged blackouts are common, often lasting several hours or even days in rural areas, and electrification rates remain low. These countries often keep electricity prices artificially low through subsidies, but limited infrastructure and dependence on imported diesel lead to less reliable and more fragile grids.

Electricity rates NZ 2025

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