Faced with cries of alarm from manufacturers, energy costs in Europe are the subject of all attention. If factory closures are piling up, it is because prohibitive energy prices, recently exacerbated by the Ukrainian crisis, now threaten the viability of entire sectors. Comparatively, the United States enjoys significantly lower prices, widening a transatlantic gap in industrial competitiveness.
The pressure of energy costs
In Europe, energy is expensive, and the bill is increasing. The war in Ukraine has interrupted Russian gas supplies, propelling prices to record levels. Although tariffs have fallen slightly thanks to increased LNG imports, particularly from the United States, they remain higher than pre-crisis prices in 2019. The price of gas is around 10 euros per megawatt hour (MWh) in the United States. , while it reaches around 40 euros per MWh in Europe, we can read on Le Figaro. As a result, giants like Michelin have been forced to close sites in France, citing unsustainable energy costs.
The gulf between European and American energy costs can be explained by structural and logistical differences. In the USA, access to a national pipeline network reduces costs, while Europe, dependent on LNG importsmust manage much higher logistics expenses. According to Nicolas Goldberg of Colombus Consulting, this situation places European manufacturers in an unfavorable market context, where even a small variation in prices can have major repercussions.
France: a model of energy competitiveness?
Europe is sparing no effort to decarbonize and develop renewable energies, a costly but necessary initiative according to Jérémie Haddad of EY. These investments, essential for an ecological transition, however weigh on the finances of companies already burdened by the high costs of conventional energy.
Unlike its neighbors, France benefits from its historic investment in nuclear power. With electricity prices significantly lower than those in Germany, and mainly carbon-free productionFrance positions itself as a leader in Europe. Raphaël Trotignon of Rexecode emphasizes that this green electricity is not only an ecological advantage but also a real competitive lever in the face of international competition.
Marked cost inequalities in the United States
In the United States, the electricity market is not uniform. It consists of eight independent, non-interconnected networks, which leads to significant price disparities between regions. For example, producing electricity is much more economical in Texas thanks to the abundance of wind and solar resources, compared to California where electricity remains more expensive. These internal variations provide flexibility that is often lacking in Europe, where countries are more interdependent and subject to unified regulations.
Europe finds itself at a crossroads for its energy future. Experts, like those at Compass Lexecon, anticipate that without major interventions, the price gap with the United States could not only persist but also worsen. Adjustments like increasing the carbon tax are being considered to balance global energy costs, but it could also influence the long-term competitiveness of European industries against economic giants such as China and India.
