Electricity Trade in Europe: Who Imports and Exports the Most?
In a world of rising geopolitical tensions and an urgent need to combat climate change, the European Union is taking steps to strengthen its energy ties among member states. The EU's unified approach aims to enhance energy security and promote the integration of renewable energy sources.
According to the International Energy Agency (IEA), electricity trade among European OECD countries has seen a significant surge over the past two decades. But which countries are the biggest importers and exporters? And what factors influence their energy trade dynamics?
Net Importers and Exporters
In 2024, among 35 European countries, 13 were net exporters of electricity, while 21 were net importers, as reported by Eurostat. Cyprus stands out as the only country with no electricity imports.
To understand a country's reliance on electricity imports, we can examine net imports as a percentage of its total electricity consumption. A positive rate indicates a country imports more than it exports, while a negative figure suggests the opposite.
In 2024, the EU's average net imports as a percentage of electricity available for final consumption was -0.5%. This means EU countries collectively export more electricity than they import.
Top Net Exporters
Several countries excel in net electricity exports. Sweden leads with a remarkable -27%, followed by France at -22%. Other strong exporters include Slovenia (-19%), Norway (-14%), Slovakia (-13%), Czechia (-12%), and Austria (-10%).
Among the EU's largest economies, France and Spain are net exporters, while Germany and Italy are net importers. This is largely due to their energy production and consumption patterns.
Factors Influencing Trade
Professor Jacques Percebois from the University of Montpellier highlights that net exporting countries often have significant hydroelectric power generation, like Sweden and Norway, or a substantial nuclear fleet, as seen in France and Sweden. In contrast, net importing countries tend to rely on intermittent renewables, which can lead to higher imports during periods of low wind or sunlight.
Yearly Fluctuations
Electricity trade figures can vary significantly from one year to the next. For instance, Greece's net import rate was 10% in 2023 but shifted to a net exporter with a -0.6% total in 2024. Similarly, Croatia's net import rate increased from 10% to 26% during the same period.
Experts attribute these fluctuations to factors such as energy mix and electricity usage patterns. John Springford, an associate fellow at the Centre for European Reform (CER), explains that countries dependent on gas for setting electricity prices tend to import more electricity. As gas prices rise and these countries use gas more frequently, they import more from lower-priced plants abroad.
Rina Bohle Zeller, the programme lead for EU energy policy at Agora Energiewende, notes Germany's shift from a net exporter to a net importer in 2023 and 2024. This change is attributed to higher carbon prices making German coal less competitive and the retirement of nuclear reactors. Additionally, increased renewable energy capacity in neighboring countries has boosted low-cost supply.
Net Volume of Trade
When considering the net volume of electricity trade, Italy stands as the largest net importer, with 51,000 GWh, followed by Germany with 26,269 GWh. In contrast, France is the largest net exporter, with 89,851 GWh, followed by Sweden with 33,435 GWh.
France's remarkable achievement in 2024 was becoming the world's largest electricity exporter, with net exports reaching a record 90 TWh, surpassing Belgium's annual electricity consumption.
This success was primarily driven by a resurgence in nuclear output and a 10% increase in renewable energy generation.
The Benefits of Cross-Border Trade
Cross-border electricity trade plays a vital role in Europe's energy system. It makes electricity more affordable for households and industries while also ensuring a secure supply at a lower cost. This trade also facilitates the integration of variable renewable energy sources, helping to reduce emissions in the power sector.
For instance, Denmark's wind power generation can compensate for Germany's decreasing solar production in the evening, demonstrating the efficiency of cross-border electricity trade.
