Electricity Prices Soar in Baltic States and Europe
In the past week, electricity prices in the Baltic States and major European countries experienced a significant increase. All “Nord Pool” trade areas saw an upward trend in prices, with Latvia and Lithuania experiencing a 32% rise in the weekly average price of electricity. In both trading areas, the price reached 111.37 euros per megawatt hour (MWh). Estonia also saw a substantial increase, with the average electricity price reaching 104.91 euros per MWh, marking a 25% increase from the previous week.
The “Nord Pool” system also witnessed a surge in prices, with the weekly average price rising by 84% to 62.96 euros per MWh. This price hike was not limited to the Baltic States, as major European countries also experienced an increase. Poland saw a 36% rise in electricity prices, reaching an average of 125.78 euros per MWh. In Germany, the price of electricity reached 104.97 euros per MWh, marking a 32% increase from the previous week.
The main factor behind the price increase in the “Nord Pool” system was the lowest weekly total wind development in the Nordic countries this year. Wind development fell by approximately 46% compared to the previous week’s data, according to representatives from “Latvenergo.” Changing precipitation forecasts and more moderate snowmelt also contributed to a decrease in the filling level of hydro reservoirs. Additionally, the increase in energy product prices played a role in the upward trend of electricity prices.
The lower development of renewable energy resources in the Baltic States further facilitated the increase in electricity prices. Wind production fell by 35%, electricity generation in hydroelectric power plants decreased by 11%, and solar production was 19% lower than the previous week.
Repair work completion led to a 64% increase in energy flow from Finland, directly impacting the price of electricity in Estonia. However, energy flows from Sweden’s SE4 trading area were 3% lower than the previous week.
The annual maintenance work season for Nordic nuclear power plants continues, with the share of available capacity from the total installed capacity reaching 82% last week.
In the “Nord Pool” region, electricity consumption reached 6,290 gigawatt hours (GWh), while production volumes amounted to 6,646 GWh.
Total electricity consumption in the Baltic States increased by 1% to 439 GWh. Latvia saw a 3% increase in electricity consumption, reaching 112 GWh. Meanwhile, Estonia experienced a 1% decrease, with electricity consumption reaching 121 GWh. Lithuania’s consumption remained at the previous week’s level, with 206 GWh of electricity consumed.
Electricity generation in the Baltics decreased by 17% last week, with a total of 207 GWh produced. Latvia witnessed a 31% decrease in electricity generation, reaching 26 GWh. Estonia experienced a 9% decrease, with electricity generation amounting to 99 GWh. Lithuania’s production volumes fell by 21%, with 82 GWh produced.
The production versus consumption ratio in Latvia was 24%, while Estonia reached 82% and Lithuania stood at 40%. Additionally, 47% of the electricity consumed in the region was produced in the Baltic States.
The increase in electricity prices in the Baltic States and Europe highlights the importance of renewable energy development and the need for stable energy sources to ensure affordable electricity for consumers.
baltic solar energy
Ergy sources, such as wind, combined with changing weather conditions and higher costs of energy products, have led to a significant increase in electricity prices in the Baltic States and major European countries. In the past week, Latvia and Lithuania experienced a 32% rise in the weekly average price of electricity, reaching 111.37 euros per megawatt hour (MWh). Estonia also saw a substantial increase, with the average electricity price reaching 104.91 euros per MWh, marking a 25% increase from the previous week.
These price increases were not limited to the Baltic States, as major European countries also experienced a surge in electricity prices. In Poland, prices rose by 36%, reaching an average of 125.78 euros per MWh. Germany saw a 32% increase, with the price of electricity reaching 104.97 euros per MWh.
The main factor behind the price hike in the “Nord Pool” system, which encompasses the Baltic States and Nordic countries, was the lowest weekly total wind development this year. Wind development fell by approximately 46% compared to the previous week, leading to a decrease in renewable energy sources. Additionally, changing precipitation forecasts and moderate snowmelt contributed to a decrease in the filling level of hydro reservoirs. The increase in energy product prices also played a role in driving up electricity prices.
As a result of these soaring prices, companies in the Baltic region are curbing their power consumption. The high electricity prices have prompted companies to reassess their energy usage and find ways to reduce costs. It is likely that consumers will also feel the impact of these increased electricity prices, as they may lead to higher utility bills.
Overall, the recent surge in electricity prices in the Baltic States and major European countries can be attributed to a combination of factors, including low wind development, changing weather conditions, and higher energy product prices. This highlights the importance of diversifying energy sources and investing in renewable and sustainable energy solutions to mitigate the impact of such price fluctuations.
