The baltic region has witnessed a remarkable transformation in its energy landscape, achieving unprecedented levels of power generation capacity in 2024. According to recent reports, the region’s energy infrastructure has reached heights not seen in at least 15 years, driven by critically important investments in renewable energy sources like solar and wind power.
Last year, new solar and wind power plants added a combined 3.5 GW to the grid.By the end of 2024, solar power stations in the Baltic region reached 3.7 GW, while wind power plants contributed 2.3 GW. This surge in renewable energy capacity led to the production of 18.5 Terawatt hours (TWh) of electricity—the highest local generation in six years. notably, the Baltic region generated 68% of its consumed electricity, reducing imports to their lowest levels in the same period.
Despite challenges, such as the damage to the “Estlink-2” cable between Finland and Estonia, wich was out of service for seven months and 15 days, the average electricity price in Latvia dropped to €87.43 per megawatt-hour (MWh)—the lowest in four years. Gatis junghāns, a member of the AST Board, emphasized that the region’s focus on expanding power grid infrastructure and integrating large-scale renewable energy is paving the way for a self-sufficient and cost-effective energy system. However,he noted that electricity prices in the Baltic States remain twice as high as in Scandinavia.
to bridge this gap, Junghāns highlighted the need to double the capacity of existing solar and wind power plants and develop electricity storage systems of at least 3 GW. “We will introduce innovative network pass increases, offer additional connection capacity, and implement motivating tariff structures to support the power system’s growth,” he stated.
The growth in renewable energy has been notably striking for solar power. In 2024, solar generation in Latvia increased more than 3.1 times, surpassing wind power to become the third-largest electricity source, behind cogeneration and hydropower. The total power of solar generation connected to the grid rose from 305 MW in 2023 to 660 MW in 2024, with further growth expected in 2025. Solar power plants contributed 6.7% to Latvia’s electricity generation balance, peaking in August with a record 66 GWh of electricity transferred to the grid.
Wind power also saw a 2% increase in 2024, reaching a new high of 38 GWh in December. Meanwhile, hydropower remained Latvia’s primary energy source, accounting for 54% of the total electricity transferred to the grid, despite a 16% decrease in production.
Latvia’s local generation covered 84.6% of its electricity consumption in 2024, a slight decline from the previous year. The remaining 1,074 GWh was imported from neighboring countries.
Key Highlights of Baltic Energy in 2024
Table of Contents
| Metric | 2024 Data |
|—————————|—————————–|
| Solar Power Capacity | 3.7 GW |
| Wind Power Capacity | 2.3 GW |
| Total Electricity Generated | 18.5 twh |
| Local Generation Coverage | 68% |
| Average Electricity Price | €87.43/MWh |
| Solar Contribution to Latvia | 6.7% |
| Hydropower Contribution | 54% |
The Baltic region’s energy transformation underscores its commitment to sustainability and self-reliance. With continued investments in renewable energy and grid infrastructure, the region is poised to achieve even greater milestones in the years to come.
Baltic energy Transformation in 2024: Insights from an Expert
The baltic region has made critically important strides in its energy sector, achieving record levels of renewable energy capacity and reducing reliance on imports. In this interview, we speak with Dr. Anna Kazlauskas, a leading energy specialist, to unpack the key developments and future prospects for the region’s energy landscape in 2024.
Record Growth in Renewable Energy
Senior Editor: Dr. Kazlauskas, the Baltic region saw a remarkable surge in renewable energy capacity in 2024.Can you break down the numbers and what they mean for the region?
Dr.Anna Kazlauskas: Absolutely. In 2024, the Baltic region added a combined 3.5 GW of renewable energy capacity,with solar power reaching 3.7 GW and wind power contributing 2.3 GW. This growth led to the highest local electricity generation in six years,totaling 18.5 TWh.These numbers reflect a significant shift towards sustainability and self-reliance, with 68% of the region’s electricity consumption now covered by local generation.
Challenges and Infrastructure Developments
Senior Editor: Despite these achievements, challenges like the “Estlink-2” cable outage persisted. How did the region manage to keep electricity prices low and ensure stability?
Dr. Anna Kazlauskas: The outage of the “Estlink-2” cable was indeed a major challenge, disrupting energy flows for over seven months. However, the region’s investments in grid infrastructure and renewable energy helped mitigate the impact. The average electricity price dropped to €87.43/MWh—the lowest in four years—thanks to increased local generation and efficient grid management. This demonstrates the resilience of the baltic energy system.
The Role of Hydropower and Solar Energy
Senior Editor: Hydropower remains Latvia’s primary energy source, while solar power saw significant growth. How do these sources complement each other?
Dr. Anna Kazlauskas: Hydropower continues to play a vital role, accounting for 54% of Latvia’s electricity generation despite a 16% decline in production. Solar power, on the other hand, grew more than threefold, contributing 6.7% to the electricity balance. These sources complement each other well—hydropower provides consistent base-load power, while solar energy peaks during sunny periods, ensuring a diverse and resilient energy mix.
Future Goals and Innovations
Senior Editor: Gatis Junghāns highlighted the need to double renewable capacity and develop storage systems. What are the key steps to achieving these goals?
Dr. Anna Kazlauskas: To meet future energy demands, the region must focus on two key areas: expanding renewable capacity and investing in energy storage. Doubling solar and wind capacity, along with developing at least 3 GW of storage systems, will be critical.Additionally, innovative network tariffs and connection incentives will help integrate these systems into the grid, ensuring a stable and cost-effective energy future.
Conclusion
Senior Editor: thank you, Dr. Kazlauskas, for these insights. It’s clear that the Baltic region’s energy transformation is a testament to its commitment to sustainability and innovation.
Dr. Anna Kazlauskas: My pleasure. The Baltic region’s achievements in 2024 are just the beginning. With continued investment and strategic planning, the region is well-positioned to lead the way in renewable energy and grid modernization.