French Factory Energy Costs Decline in 2024, But Remain Elevated
After three years of increases, energy costs for French factories decreased in 2024, according to a recent study by the French National Institute of Statistics and Economic Studies (INSEE). However, despite the decline, energy bills remain significantly higher than pre-pandemic levels.
Energy Bill Reduction in 2024
The total energy bill for French industry (excluding raw materials) reached €17.3 billion in 2024, a 24% decrease compared to 2023. This reduction provides some relief to manufacturers who have been grappling with soaring energy prices in recent years.
INSEE data highlights the trajectory of these costs: a 40% increase in 2021 following the post-COVID economic recovery, a further 52% increase in 2022 due to the war in Ukraine, and a more moderate 5% increase in 2023. Source: INSEE
Still Higher Than Pre-Pandemic Levels
Despite the 2024 decrease, the current energy bill is still almost 1.5 times higher than in 2019, when it stood at €11.7 billion. Simultaneously, energy consumption has fallen by 16%.
Price Decreases Across All Energy Sources
All energy sources experienced price reductions in 2024:
- Electricity: -28% (following a +31% increase in 2023)
- Gas: -21% (after -12% in 2023)
- Petroleum products: -5%
- Steam: -13%
- Solid mineral fuels: -18%
Long-Term Increases Remain Significant
The declines in 2024 do not fully offset the substantial increases of recent years. Between 2019 and 2024:
- Gas prices increased by 103%
- Electricity prices increased by 64%
- Petroleum product prices increased by 38%
Prolonged reductions in energy prices are needed to fully restore the financial health of French manufacturers.
European Industrial Concerns
High energy costs continue to impact the profitability of industrial businesses across Europe. In early February 2026, energy-intensive industries in Europe called on European officials to implement “concrete initiatives” to lower energy prices, specifically targeting network costs and taxes.
Looking Ahead
While the decrease in energy costs in 2024 is a positive development for French manufacturers, sustained reductions are crucial for long-term competitiveness. Continued monitoring of energy prices and proactive policy measures will be essential to support the industrial sector.