Which Countries Have the Cheapest Electricity Prices?

EleElectricity prices can vary massively from country to country. Factors such as domestic resources, government policies and economic stability can all influence the cost and availability of electricity.

In some countries, electricity can be significantly cheaper than in others. This can help to be a boost to the economy, encouraging industry and lessening the financial impact on those who live there. Using the latest data from Global Petrol Prices, we found the countries with the cheapest electricity prices and investigated exactly why they can keep energy rates so low.

Below are the top ten countries with the cheapest electricity prices per kwh.

Iran has the cheapest electricity prices in the world at $0.003 per kWh. There are a number of factors that contribute to Iran’s low electricity prices, including the country’s abundance of natural gas and oil. Iran has the third-largest proved oil reserves and the second-largest natural gas reserves in the world. Because Iran does not need to import fossil fuels, like many other countries, it can supply electricity at a much cheaper rate.

Energy in Iran is largely controlled by the state, meaning the government can set electricity prices without market influence, keeping rates low. The government heavily subsidises electricity prices – in 2022, 36% of GDP was spent on energy subsidies. The aim is to ensure energy is affordable for the entire population and to help support local industry and encourage economic growth.

Ethiopia has the second-cheapest electricity in the world, at $0.006 per kWh. Like the other countries on this list, the Ethiopian government subsidises electricity costs in an effort to make electricity more accessible to the wider population.

A recent development is the Grand Ethiopian Renaissance Dam (GERD), which was inaugurated in September 2025 and completed in February 2026. With an installed capacity of 5,150 MW, it is the largest hydroelectric power plant in Africa and effectively doubled Ethiopia’s generation capacity overnight.

Ethiopia has some oil and natural gas, but has an abundance of renewable energy sources, which the government has invested considerably in. The government aims to connect 96% of citizens to the grid and Ethiopia’s GDP is expected to grow to 7.1% this year, supported by international investment in transmission infrastructure.

Currently, around 90% of Ethiopia’s electricity comes from hydropower, with approximately 8% from wind and 2% from thermal sources. The country has the potential to generate over 60,000 MW of electricity from renewable sources, and development across diverse renewable projects could see it meet growing demand in sustainable ways.

Kyrgyzstan has the third-cheapest electricity in the world at $0.014 per kWh. The Central Asian nation generates approximately 90% of its electricity from hydropower, thanks to its extensive network of mountain rivers.

The government controls electricity pricing and heavily subsidises household tariffs, keeping consumer prices well below the actual cost of generation – estimated at around $0.018 per kWh in 2026, rising by $0.004 in 2027.

Kyrgyzstan regularly imports electricity during winter, when river flows drop and hydropower output falls, relying on neighbours including Kazakhstan, Turkmenistan, and Russia to cover the shortfall. The government’s long-term answer is the Kambarata-1 Hydropower Plant on the Naryn River – a 1,860 MW project that, once complete, is expected to end seasonal import dependency.

Bhutan has the joint-fourth cheapest electricity in the world at $0.015 per kWh. The small Himalayan kingdom generates 100% of its electricity from hydropower, fed by fast-flowing glacial rivers descending from the eastern Himalayas. Bhutan exports a significant portion of its electricity to neighbouring India, making hydropower both its primary domestic energy source and one of its most important revenue streams.

The government subsidises household electricity, and the low marginal cost of hydropower keeps prices structurally low. The main vulnerability in Bhutan’s model is its exposure to changing weather patterns – if rainfall and glacial melt decline, generation capacity can drop significantly.

Sudan, Iraq, and Cuba are all joint-fourth in the global rankings at $0.015 per kWh, each maintaining low prices through state-controlled energy sectors and domestic resources. However, a low headline price tells only part of the story for all three. Sudan is in the fourth year of a civil war that has destroyed up to 40% of its generation capacity, leaving millions without reliable access to power. Iraq remains heavily dependent on gas imports to run its power stations,  a supply chain severely disrupted by the current ongoing conflict, resulting in chronic daily blackouts despite being one of the world’s largest oil producers. Cuba is experiencing electricity blackouts of up to 18 hours a day, therefore, in all three cases, the low tariff reflects administered pricing rather than a functioning, reliable electricity system.

Below are the average cheapest business electricity rates per kWh.

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