Electricity production in Latvia has decreased sharply by 27%
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JSC “Latvenergo” experts point to an alarming trend in the Latvian electricity market – in the past week, the amount of electricity generation in the country has experienced a significant drop of 27% compared to the previous week. Although this decline is not catastrophic, it raises questions about the stability of the market and our dependence on imports. The total amount of electricity production in the Baltic region has increased by 11%, reaching 315 GWh, however, Latvia’s figures have lagged significantly, producing only 64 GWh. This means that local development is able to cover only about 53% of the country’s consumption, which is a noticeable difference from the situation in neighboring countries. This situation raises concerns about the stability of the energy market and future price fluctuations.
In neighboring countries, production is growing, in Latvia it is falling
In contrast to Latvia, where electricity production volumes have fallen, they have grown significantly in neighboring countries. In Estonia, production increased by 37%, producing 84 GWh, while in Lithuania, production grew by 25%, reaching 166 GWh. In total, 315 GWh of electricity was produced in the Baltic States, which is 11% more than in the previous period. Although the decline in Latvian production is pronounced, 68% of the amount of electricity consumed in the region was produced in the Baltic States, which highlights closer regional integration, despite Latvia’s negative dynamics.
Price fluctuations and their causes
Last week, wholesale electricity prices in the Nordic region increased by 4% to 45.55 EUR/MWh. This slight increase was driven by an 11% decrease in the availability of nuclear power plants in these regions. In the Baltic countries, on the other hand, prices decreased: in Latvia and Lithuania they fell by 11% to 93.91 EUR/MWh, and in Estonia – by 12% to 93.44 EUR/MWh. The main factor behind the lower prices in the Baltic States was significantly higher wind development in the region, which increased by 26%. It is a clear example of how renewables can significantly affect market prices. However, while wind generation has increased, solar generation has seen a 16% drop compared to the previous week.
International market influence and consumption trends
Interestingly, electricity prices in Poland increased by 8% to 121.62 EUR/MWh. These data illustrate the complex and dynamic situation of the energy market, in which various factors, from the weather to interconnection maintenance work, play an important role. The total electricity consumption in the Baltics decreased by 2% and was 462 GWh. The amount of electricity consumed in Latvia was unchanged compared to the previous week – 121 GWh. In Estonia, consumption decreased by 9% to 131 GWh, while in Lithuania 210 GWh of electricity was consumed, which is an increase of 2% compared to the previous week.
Estonia-Finland interconnection restrictions
In the period from September 1 to 24, it is planned to reduce the power of the Estonian-Finnish interconnection from 1016 MW to 658 MW. These technical works could cause additional fluctuations in the region’s electricity flows and, accordingly, prices. These data illustrate the complex and dynamic situation of the energy market, in which various factors, from the weather to interconnection maintenance work, play an important role.
We remind electricity users that price fluctuations in “Nord Pool” directly affect only those customers who have concluded a variable price contract with their electricity trader, based on the price of electricity on the stock exchange.
