In the first half of April 2025, the cost of electricity in Ukraine exceeded the indicators of neighboring countries - Poland, Romania, Hungary and Slovakia and is €104.6 per MWh. In addition, Ukrainian tariffs were 34% higher than German tariffs and 3.5 times higher than in Sweden, and the cheapest electricity in Spain is €29.3 per MWh.
This is evidenced by data of GMK Center.
It is noted that the rise in prices is largely due to the significant damage caused to Ukraine's energy infrastructure as a result of Russian attacks. According to the Ministry of Energy, about 10 GW of generating capacity was lost in 2024 alone, of which only about half could be restored. This has created a high dependence on external supplies, as a result of which the cost of imported electricity actually determines domestic tariffs.
It is reported that, according to the Market Operator, the weighted average price of electricity on the day-ahead market in Ukraine for the first ten days of April amounted to UAH 4,834.17 per MWh, which is equivalent to €104.6 at the average euro exchange rate for the period. At the same time, the trading volume for this period decreased by 12.1% compared to the first ten days of March.
By comparison, in most European energy markets during the same timeframe, the average weekly price did not exceed €75 per MWh, with the exception of some regions. The decline in prices in the EU was affected by the fall in gas futures and carbon emissions, reduced demand and growth in generation from renewable sources.
At the same time, in March this year Ukraine imported 272 thousand MWh of electricity - this is 11% more than in February. However, in year-on-year comparison, the volume of supplies decreased by almost 40%. The main supplying countries were Hungary (42%), Slovakia (19%), Poland (18%) and Romania (16%). In April, the largest volumes also came from Hungary.
Also for the whole of 2024, Ukraine's electricity imports increased 5.5 times year-on-year to 4.4 million MWh. Hungary accounted for 39% of supplies, Slovakia 23%, Romania 18% and Poland 14%.
At the same time, one of the main problems noted by European steelmakers remains the high cost of energy. This has a significant impact not only on metallurgical production, but also on the entire industrial chain with high added value. According to GMK Center estimates, 93% of steel in the European Union is produced in countries with lower electricity tariffs than in Ukraine. This significantly reduces the competitiveness of Ukrainian companies. It is especially hard for the companies producing iron ore concentrate, as about 60% of their costs fall on electricity.
Analysts remind that in March 2025 on most European markets there was a significant decrease in average wholesale electricity prices for a day ahead. This occurred against the backdrop of a general fall in demand, an increase in the share of renewable energy, as well as lower gas prices and carbon emissions. Nevertheless, in the first quarter of 2025, the average electricity price in Europe's main markets was above €85 per MWh.
"The competitiveness and recovery prospects of the Ukrainian economy, industry and metallurgy depend on the availability and cost of electricity. The European Commission and many EU governments have already realized this and are implementing support programs. Ukrainian industry will not be able to ensure economic recovery without affordable and stable electricity prices", - commented the director of GMK Center Stanislav Zinchenko.
