March average NordPool The electricity exchange price in the Latvian trading area was 43.55 euros per megawatt hour (EUR / MWh), which is 26.4% lower than in February. Thus, the four-month-long rise in electricity prices was stopped, but it is still 81 percent higher than a year ago, according to the Latvian electricity transmission system operator AS High voltage network information collected.
In the Baltics and Finland as a whole, as well as in Sweden’s 4th trade area (with which the Baltics have international connections): the price of electricity has decreased by 24.2%. In Latvia and Estonia, prices were identical for the second month in a row (a decrease of 26.4% to 43.55 Eur / MWh), while in Lithuania the decrease is only 19% or up to 48.02 Eur / MWh.
The price difference in the Baltics was caused by insufficient administrative capacity between Latvia and Lithuania at certain hours of the day and the closure of the Belarusian-Lithuanian electricity import border on November 4 last year, as a result of which Lithuania’s total ability to import electricity and diversify supplies from neighboring countries has decreased.
Looking at electricity prices in the Baltics, it should be noted that the overall level of electricity prices in Scandinavia has increased compared to last year and is related to the submarine cable from Norway to Germany unveiled last December, which resulted in more electricity exports to countries where the price is higher.
Although the increase is no longer observed in March compared to February, due to market redistribution, Finland has a greater influence in the Baltics – Latvian and Estonian prices are approaching the level of Finland, with both EstLink (Finland – Estonia) submarine cable load up to 72% or 21 percentage points, while NordBalt (Sweden – Poland) cable load was 44% in March, down 27 percentage points from February.
Taking into account the sufficient transmission capacity between Latvia and Estonia after the opening of the third interconnection of the two countries in January this year, for the first time since December 2016, Latvia has a lower average monthly electricity price than Sweden’s 4th trade area.
In March, the average electricity exchange price in the Latvian trading area was 43.55 Eur / MWh and, compared to February, the price decreased by 26.4%, but, compared to March of the previous year, when it was 24.02 Eur / MWh, the price has increased by 81%. The next day’s electricity price of the Latvian Trade Area Electricity Exchange fluctuated from 18.44 Eur / MWh to 63.74 Eur / MWh.
Comparing the monthly hourly electricity price between Latvia and Estonia, it can be concluded that the price was the same 100% of the monthly hours, but in the previous month this period was 99.9% of all monthly hours. On the other hand, comparing the monthly hourly electricity price between Estonia and Finland, it can be concluded that the prices were the same 68% of the number of hours in March. The price of electricity in the Lithuanian trade area was equal to the price in Latvia by 74%, but in the 4th trade area of Sweden by 77% of the number of hours per month.
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