Ukraine has one of the highest electricity prices in Europe

In the first half of April, electricity prices in Ukraine have already surpassed neighboring countries such as Poland, Romania, Hungary, and Slovakia. They are 34% higher than in Germany and 3.5 times higher than in Sweden.

This situation with energy carriers in Ukraine is explained by the significant damage caused to its energy infrastructure as a result of Russian attacks. According to the Ministry of Energy, last year alone, this resulted in the loss of about 10 GW of generating capacity, and the energy sector managed to restore about half of it. This situation leads to a significant dependence on imported electricity. Currently, the price of imported energy determines domestic energy prices in Ukraine.

According to the Market Operator, the weighted average purchase and sale price of electricity in Ukraine on the DAM in the first ten days of April amounted to UAH 4,834.17/MWh (€104.6/MWh at the average euro to hryvnia exchange rate for this period).

Compared to the first ten days of March, the trading volume on the DAM on April 1-10 decreased by 12.1%.

In the first half of April, most major European markets recorded weekly averages below €75/MWh, with a few exceptions. This was driven, in particular, by a significant drop in gas futures and carbon emissions, and lower demand.

In March 2025, Ukraine imported 272 thousand MWh, 11% more than in the previous month. At the same time, on a year-on-year basis, these volumes decreased by almost 40%. The main sources of imports during this period were Hungary (42%), Slovakia (19%), Poland (18%), and Romania (16%). In the first half of April, Hungary accounted for the majority of imports.

In 2024, electricity imports to Ukraine increased by 5.5 times y/y and reached 4.4 million MWh. Most of these imports came from Hungary (39%), Slovakia (23%), Romania (18%), and Poland (14%). European steelmakers currently see energy prices as one of their key challenges, as high energy prices affect not only steel and steel production but also the entire European industrial value chain.

GMK Center estimates that 93% of EU steel is produced in countries where electricity prices are lower than in Ukraine, which significantly affects the competitiveness of domestic companies compared to steelmakers from other regions. This is especially painful for iron ore concentrate producers, as 60% of their production costs are related to electricity.

In March 2025, average monthly day-ahead wholesale prices in Europe fell significantly in most markets. The decline was driven by falling demand, increased energy production from renewable sources, lower gas prices and CO2 emissions. In January-March 2025, the average quarterly electricity price in most major European markets exceeded €85/MWh.

«The competitiveness and prospects for the recovery of the Ukrainian economy, industry and metallurgy depend on the availability of electricity and its cost. 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 prices for electricity», Stanislav Zinchenko, GMK Center CEO, said.