Wind power generation in Baltic states plummets in June, driving up electricity prices
Wind electricity generation in the Baltic states dropped by 42% in June compared to May, leading to a 56% year-on-year increase in electricity exchange prices.
According to the monthly electricity market review by state-owned company Eesti Energia, wind power generation in the Baltic states reached 320 gigawatt-hours in June this year, 42% less than in May. Compared to June last year, when 505 gigawatt-hours were generated, output fell by approximately 40%.
The shortage of cheap wind energy has negatively impacted exchange electricity prices, which rose by 56% year-on-year in June. Another factor was the reduced output from Latvian hydroelectric plants – last June they helped keep prices low even during evening hours. As a result, more expensive fossil fuel units had to be used to meet market demand.
Eesti Energia notes that despite this, the current price level in Estonia remains at typical summer prices. However, Latvia and Lithuania are again facing a situation reminiscent of summer 2024, when the EstLink 2 interconnector was out of service due to a fault and regional prices rose significantly. This time, constraints on cross-border power lines between Estonia and Latvia are creating similar conditions.
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