Oil, Electricity or Gas? The Right Choice for Energy Upgrading
🏡 How is the cost of energy sources shaped today?
There are no longer stable energy prices, as they are determined by international market developments—something that became especially evident during the energy crisis. The market is highly volatile.
For example, natural gas, which today (around €30–32/MWh in Amsterdam) is considered one of the most cost-effective heating solutions, cost ten times more just three years ago.
Electricity prices are also variable, set daily based on the wholesale market price. The key factor is not only the price of the energy source, but also the technology used. An electric heater is the most expensive way to heat a space, while an electric heat pump can be the most economical solution.
💰 What are the main advantages and disadvantages of each option?
| Energy Source | Covers | Cost (Indicative) | Main Disadvantage / Note |
|---|---|---|---|
| Natural Gas | Heating & Domestic Hot Water | Very economical (approx. €0.07/kWh) | Availability (requires a gas network in the area) |
| Electricity | Heating, Cooling & Domestic Hot Water | Very wide range | Expensive with resistance heating (e.g. heaters). Much cheaper with heat pumps |
| Oil | Heating & Domestic Hot Water | Medium (approx. €0.11/kWh at 90% efficiency) | Dependence on international prices and USD exchange rate. Requires annual maintenance and faces potential future bans due to emissions |
⚡ Why can electricity be the best solution for the future?
Electricity is the only energy source that can cover all household needs: heating, cooling, and domestic hot water. Although the average electricity price (around €0.22–0.23/kWh including charges) may seem high, efficiency is the decisive factor.
The use of modern technologies, such as inverter air conditioners and especially heat pumps, can reverse the cost equation. A heat pump produces 3 to 4 thermal kilowatt-hours for every 1 kilowatt-hour of electricity it consumes, making it one of the most cost-effective solutions available.
In addition, electricity allows households to become energy producers themselves (e.g. through photovoltaic systems), dramatically reducing overall energy costs.
Recent Estates
