Electricity prices surge in the Baltics: Latvenergo explains why

Electricity prices in the Baltic states have climbed sharply in early November. On Monday, 9 November, the average price in the Latvian trading area of the Nord Pool power exchange reached 414.12 euros per megawatt-hour (MWh), or 0.414 euros per kilowatt-hour. By comparison, the average price in this area in 2025 was 85.72 euros per MWh. The reasons were explained to the news agency LETA by Latvenergo, Latvia's state-owned energy company, and by AST, the state-owned transmission system operator.

Price levels

On Monday the peak price was 669.01 euros per MWh between 17:45 and 18:00, while the lowest, 218.98 euros per MWh, came during the night. On Tuesday, 10 November, the average price in Latvia will be 409.31 euros per MWh. On some days the daily average in Latvia and Lithuania has exceeded 300 euros per MWh.

Gatis Junghāns, a board member at AST, said that in the first nine days of November the average wholesale price in Latvia was 278 euros per MWh, more than double the October level.

Reasons for the increase

Latvenergo says the impact of high energy prices, caused largely by the conflict in the Middle East and the supply restrictions it created, is increasingly showing in the electricity market. Until now it had been cushioned by strong renewable generation. Solar output has now fallen by as much as 50%, while wind farms are producing significantly less than last week, even though wind capacity has grown by 59% this year. Inflow into the Daugava river is a third lower than last year, and availability of Nordic nuclear plants is 55%, compared with 85% a year ago.

In October solar and wind plants in the Baltics produced about 40% of consumed electricity; in November, about 30%. Generation at more expensive thermal plants, especially gas-fired ones, is increasing. In addition, several units in Latvia and Lithuania with combined capacity of about 1,000 megawatts are under repair; they are scheduled to return to service in the second half of November.

The Baltic states have imported a quarter of the electricity they needed in November, mainly from the Nordic countries, but interconnection capacity is insufficient for cheaper imports to fully replace costly generation. Part of the capacity is also reserved for balancing services.

Impact on customers

Price swings are felt by customers on exchange-price contracts, while those with fixed-price contracts are not affected.