Electricity in Latvia Nearly Twice as Expensive as in Estonia
Last week, the average electricity price in Latvia rose to EUR 85.92 per MWh, almost double that of Estonia, where the price fell to EUR 44.79 per MWh.
The average wholesale electricity price in Latvia increased by 10% last week, reaching EUR 85.92 per megawatt-hour (MWh), according to data from Latvenergo. The same price was recorded in Lithuania, where it rose by 7%. In contrast, the price in Estonia dropped by 6% to EUR 44.79 per MWh.
The price surge in Latvia and Lithuania was primarily driven by a 23% drop in solar generation and a 51% reduction in electricity imports from Sweden's SE4 zone due to higher prices there. Meanwhile, Estonia saw a price decline thanks to a 19% increase in imports from Finland, facilitated by a significant price drop in Finland.
Impact of Interconnections
Insufficient interconnection capacity between the Baltic states prevented price convergence. This was influenced by repairs on the Estonia-Latvia interconnector, which ended on July 10, during which transmission capacity from Estonia to Latvia was reduced by 122 MW. Additionally, partial capacity was reserved for balancing services to maintain frequency stability, limiting imports of cheaper electricity to Latvia and Lithuania in the day-ahead market.
Other European Markets
Other European countries showed mixed trends. In Germany, prices fell by 7% to EUR 98.33 per MWh, while in Poland they increased by 3% to EUR 107.37 per MWh.
Generation and Consumption
Total electricity consumption in the Baltics fell by 5% to 455 GWh. Latvia consumed 118 GWh (down 4%), Estonia 122 GWh (down 3%), and Lithuania 214 GWh (down 7%). Electricity generation in the Baltics decreased by 5% to 379 GWh. Latvia produced 85 GWh (down 11%), Estonia 81 GWh (up 12%), and Lithuania 213 GWh (down 7%). Generation as a share of consumption was 72% in Latvia, 66% in Estonia, and 100% in Lithuania. Overall, the Baltics generated 83% of the electricity they consumed.
