Last week, the highest weekly average prices were in a number of NordPool countries: € 292.54 per MWh in Germany, € 345.34 per MWh in France, Belgium, the Netherlands and elsewhere. The price was also high in the countries closest to the Baltic region. In the Swedish SE4 sales area, it was € 253.68 per MWh, while in Finland it was € 233.03 per MWh, the second highest price in Finland’s weekly average price statistics.
Last week, the price of electricity in Latvia increased by 57% to 247.50 euros per MWh, in Estonia the price of electricity was 233.47 euros per MWh, which is an increase of 52%, but in Lithuania the price was 49% higher than in the previous week – 253, 73 euros per MWh.
Kaspars Cikmačs, a member of the Board of Latvenergo, points out that there is currently insufficient electricity generation capacity in the Baltic States – Lithuania has relied on the availability of imports for many years, while Estonia has relied on the use of oil shale. As a result, the Baltic States are generally short of energy, and there is often a shortage of electricity generation in Denmark, Finland and Germany, which is particularly painful in the market today.
Latvenergo points out that in fact the only country that provided electricity for its own consumption in the last weeks of the year was Latvia, which also exported it, and not only in the Baltics, but often also in the Nordic countries. If Latvia’s demand in December was 593 gigawatt hours (GWh), then 603 GWh of electricity was produced, which is 2% more. According to Latvenergo’s representatives, this means that the electricity generated by Latvenergo’s CHP and HPP was competitive and provided a secure supply in the face of exceptional prices and demand.
“This is another moment to emphasize the importance of CHP in the Latvian power system – at a time when other countries are buying electricity even to ensure their own consumption, not to mention exports. However, our export capacity is in diversity – energy resources (RES) and efficient cogeneration plants together, while about 30 GWh – Latvenergo TEC power units and Daugava HPP, “says Cikmačs.
He explains that new capacities need to be developed in the Baltics and Latvia, and Latvenergo sees a need to accelerate the construction of wind farms by at least 800 MW, as set out in the group’s new strategy.
Demand in the electricity market for the availability of capacity confirms the need to deliberately build wind and solar capacity in the country, which will ensure the consumption of RES, especially in an efficient wholesale market where gas turbines and HPPs are able to balance major shortages and surpluses. This will ensure not only domestic consumption but also the export of green electricity.
Cikmačs points out that in addition to a modern and energy-independent country, the development of RES capacity is a logical choice – further development of HPP efficiency, new high-capacity wind farms, solar energy for self-consumption and faster development of climate-neutral solutions for balancing capacities.
“In addition, research into sustainable and climate-neutral electricity storage technologies must be started now in order to provide energy sources at a time when sufficient energy from wind, solar and water is not available,” says Cikmačs.
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