Cost breakdown of electricity price for industrial customers in Germany 2023-2024

German industrial electricity costs are made up of several components. The largest of these is a combination of energy procurement, network charges, and distribution. Thus far in 2024, this accounted for around 15 percent of costs. 

What is industrial electricity?

Industrial electricity is an extremely broad field, covering electrical power used in production and manufacturing. These are industrial processes. Industrial electrical systems are considerably more complex than those used for residential and commercial purposes, as industrial use by definition includes different types and volumes of demand, operation, and maintenance. Systems in residential buildings require less voltage and are developed for smaller spaces. Commercial electricity is used to power the work of businesses and commercial real estate. Rising electricity prices have been an issue for industries, businesses, and private households around the world since the global energy crisis. As of 2023, commercial electricity prices were noticeably higher than industrial.  

Electricity generation in Germany

Various energy sources are used to generate electricity in Germany. Not all of them are renewable, or at least the complete energy transition has not happened yet. The leading sources used for electricity generation are wind, lignite (brown coal), and natural gas. Domestic production figures for the latter have been decreasing, thus consequently making Germany reliant on gas imports from other countries.