Latvia's electricity price rose 50% last week to €265 per megawatt-hour

The average electricity price in Latvia increased by 50% last week, reaching €265.46 per megawatt-hour (MWh), according to the state energy company AS Latvenergo. The figures refer to the Nord Pool power exchange, which covers the Nordic and Baltic countries and where wholesale prices are set.

Prices up across the Baltics

In Lithuania the average price rose 57% to €278.24 per MWh, and in Estonia it also rose 57%, to €186.76 per MWh. The Nord Pool system price, which reflects the whole region, increased 20% to €120.19 per MWh.

What drove the increase

Latvenergo says high energy prices, largely caused by the conflict in the Middle East and the resulting supply restrictions, are increasingly showing up in the electricity market. Renewable sources cannot offset this at this time of year, and the interconnection situation adds to the effect.

Rising consumption and a smaller supply of cheaper electricity in the region also pushed prices up. In the Baltics, imports from Sweden's fourth trading zone fell by 83%, and flows from Finland could not make up the gap, so demand had to be met with more expensive generation.

Generation and consumption

In the Baltics, solar power output rose 62% and wind output 44%. Across the whole Nord Pool region, solar output fell 17% and wind 2%, while availability of Nordic nuclear plants increased 4% to 55%.

Total Baltic consumption grew 1% to 567 GWh. Latvia consumed 150 GWh, Estonia 160 GWh and Lithuania 257 GWh. Baltic electricity generation rose 33% to 439 GWh; Latvia produced 142 GWh (+22%), Estonia 132 GWh (+51%) and Lithuania 166 GWh (+31%).

Generation covered 95% of consumption in Latvia, 82% in Estonia and 64% in Lithuania. Overall, the Baltic states produced 78% of the electricity consumed in the region.