The European Union is strategically enhancing its energy interconnections as a unified front against escalating geopolitical pressures and the pressing realities of climate change. This collaborative approach, rather than individual member state efforts, is intended to fortify the bloc’s electricity supply security and facilitate greater integration of renewable energy sources into the market, according to the European Commission. Analyzing cross-border electricity flows reveals a dynamic landscape of energy trade among European nations, highlighting dependencies and surpluses that shape the continent’s energy future.
Shifting Currents in Electricity Trade
Data from Eurostat for 2024 indicates a significant variation in electricity trade among 35 European countries. Thirteen nations operated as net electricity exporters, while twenty-one were net importers. Notably, Cyprus was the sole country reporting no electricity imports. The metric of “net imports as a percentage of electricity available for final consumption” provides insight into a country’s reliance on imported power. A positive percentage signifies a net import status, whereas a negative figure indicates a net export position. Across the EU, the average for this metric was -0.5%, suggesting that, on aggregate, EU member states export more electricity than they import.
Leading Exporters and Importers
Among the nations with substantial electricity exports, Sweden stands out with a net export rate of -27%, followed closely by France at -22%. Other significant exporters include Slovenia (-19%), Norway (-14%), Slovakia (-13%), Czechia (-12%), and Austria (-10%). In terms of the EU’s four largest economies, France (-22%) and Spain (-4%) are net exporters. Conversely, Germany, with a net import rate of 6%, and Italy, at 18%, are net importers. Experts attribute the strong export positions of countries like Sweden and Norway to their extensive hydroelectric production, while France’s capacity stems from its substantial nuclear energy fleet. Net importing nations often exhibit a higher proportion of intermittent renewable energy sources, necessitating imports when renewable generation is insufficient.
Factors Influencing Trade Balances
The dynamics of electricity trade can experience notable year-on-year fluctuations, as demonstrated by comparing 2023 and 2024 data. For instance, Greece transitioned from being a net importer (10% in 2023) to a net exporter (-0.6% in 2024). Croatia’s net import rate, conversely, surged from 10% to 26% within the same period. These shifts are often influenced by a nation’s energy mix and consumption patterns. According to John Springford, an associate fellow at the Centre for European Reform, countries that rely on natural gas for marginal electricity pricing tend to be larger net importers. As gas prices rise, their increased reliance on this fuel makes imports from lower-cost foreign generation more attractive.
Rina Bohle Zeller, program lead for EU energy policy at Agora Energiewende, highlighted Germany’s transition from being a net exporter for two decades to a net importer in 2023, a status that continued into 2024. This change is attributed to factors such as higher carbon prices impacting the competitiveness of German coal, and the decommissioning of three nuclear reactors. Furthermore, the expansion of renewable energy infrastructure in neighboring countries has also contributed to increased low-cost electricity supply in the region.
Absolute Trade Volumes and System Benefits
Examining the net volume of electricity trade reveals significant absolute figures. Italy stands as the largest net importer, with 51,000 GWh, followed by Germany at 26,269 GWh. On the export side, France leads with 89,851 GWh, followed by Sweden with 33,435 GWh. Zeller noted that France’s position as the world’s largest electricity exporter in 2024, with record net exports of approximately 90 TWh, was largely driven by a recovery in nuclear output and a 10% increase in renewable generation.
Cross-border electricity trade plays a pivotal role in Europe’s energy infrastructure by reducing costs for consumers and industries, and enhancing security of supply through the most cost-effective means. This interconnectedness also aids in the integration of variable renewable energy sources, thereby reducing emissions from the power sector. For example, wind power generation in Denmark can effectively complement periods when Germany’s solar energy production diminishes, illustrating the synergistic benefits of a well-integrated European energy market.
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Michael Carter holds a BA in Economics from the University of Chicago and is a CFA charterholder. With over a decade of experience at top financial publications, he specializes in equity markets, mergers & acquisitions, and macroeconomic trends, delivering clear, data-driven insights that help readers navigate complex market movements.