USpolitics

Residential electricity costs are cheaper in Texas than in Iceland, with Texas prices averaging around $0.1532 per kWh compared to Iceland's average of $0.201 per kWh.

Iceland generates nearly 100% of its electricity from renewable sources, primarily geothermal and hydropower, which provides stable, low-cost power generation that is insulated from global fossil fuel price shocks. The high residential price is largely due to taxes and fees associated with transmission and distribution.

Texas operates a competitive, deregulated energy market with a diverse energy mix that includes significant contributions from natural gas, wind, and solar power. The market-based approach in Texas is designed to foster innovation and competition, which generally helps keep generation costs low, though prices can be volatile during extreme weather events.

The primary use of geothermal energy in Iceland is for efficient and widespread space heating via district heating systems, which makes overall heating costs very low. This contrasts with Texas, where the primary energy use is often for air conditioning.

While Iceland has abundant, cheap domestic renewable energy resources, the retail price for residential electricity in Texas is currently lower.

Costa Rica's electricity costs are generally comparable to or slightly higher than Texas's average, but with significant variations due to tiered pricing and time-of-use rates, averaging around $0.12 to $0.18/kWh, while Texas averages around $0.1566/kWh, but CR offers very cheap off-peak rates (around $0.05/kWh) versus peak rates ($0.29/kWh), leveraging abundant renewables, whereas Texas benefits from cheap natural gas.

Overall: While Costa Rica's high-end rates are pricier, its very cheap off-peak rates can make it very competitive, especially for users who shift consumption to nights and early mornings.

Texas: Offers a consistently lower average cost due to its strong natural gas production, providing stable, affordable rates.

Context: Costa Rica's system heavily promotes energy conservation through time-of-use, while Texas benefits from a robust, low-cost fossil fuel market.

Countries leading in renewable energy vary by metric, but China leads in total capacity and generation, while nations like Norway, Iceland, Costa Rica, and Uruguay often hit 90-100% renewable electricity, relying heavily on hydro, geothermal, wind, and solar, with Denmark leading significantly in wind power contribution.

Uruguay has significantly higher residential energy costs than Texas, with prices in Uruguay being approximately 72% more expensive for residential consumers.

Texas consumes a vastly larger amount of energy than Uruguay, with its industrial sector alone using more energy than many entire countries. Texas's total energy consumption is more than 30 times higher than Uruguay's total energy production/demand.

For what it is worth. It is typically these studies compare the fuel costs only, not the cost of maintenance, upgrades, and balancing of the grid.

Within the US, blue states that mandate green energy with projects such as offshore wind face higher energy costs than red states that let the market determine the most economical energy source. As I said before, the economics involves more than just fuel costs.

Activist and political hacks who choose only to see the good aspects will tell you that solar and wind is always better than fossil fuels and nuclear energy.

As of late 2024/early 2025 data, residential electricity prices in Texas are generally slightly cheaper than in Norway, though both countries have dynamic markets subject to significant price fluctuations.

Norway: The market relies almost entirely on abundant, cheap-to-produce hydropower (around 91% of production). The Norwegian electricity market is part of the integrated Nord Pool energy market, which includes much of Europe, meaning prices can be influenced by supply and demand dynamics across the continent, not just domestic production.

Texas: Texas has a diverse energy mix and is a leader in U.S. oil, natural gas, and wind energy production. The state's grid (managed by ERCOT) is largely deregulated, promoting competition among providers, which can lead to competitive rates. However, the reliance on natural gas and an isolated grid also means prices can experience extreme volatility during peak demand or severe weather events.

In essence, while average prices are competitive, Texas's market is characterized by volatility and deregulation, whereas Norway's market is stable due to hydro dominance but linked to the broader European market.