As summer approaches, electricity prices are expected to remain relatively low, especially during daytime when solar generation is at its highest, representatives of the energy company Enefit told the LETA news agency.
However, the company emphasizes that price fluctuations will still be determined by weather conditions, the availability of hydropower resources, wind output, and electricity imports from the Nordic countries.
In March this year, electricity prices in Latvia decreased significantly, with the average market price reaching 7.5 euro cents per kilowatt-hour—approximately twice as low as in January and February. The price drop was mainly driven by warmer weather, lower electricity consumption, and a rapid increase in renewable energy production.
Following the cold winter months, electricity demand in Latvia fell in March to 625 gigawatt-hours (GWh), about 10% less than in January and February, when consumption ranged between 690 and 752 GWh. Across the Baltic region, demand also declined by nearly one-fifth.
Solar power generation saw particularly sharp growth in March,
reaching 108 GWh—more than seven times higher than in February. This contributed to very low daytime prices, at times even falling below one to two cents per kilowatt-hour.
At the same time, hydropower production in Latvia also increased significantly, reaching 487 GWh and covering nearly 78% of the country’s total electricity consumption. Hydropower generated in Latvia also significantly influences prices across the Baltic region, as it operates as a unified electricity market, the company explained.
Electricity imports from the Nordic countries continue to play an important role in price formation. Supplies from Finland via Estonia can significantly reduce prices in the Baltics; however, in March, interconnection limitations meant that cheaper electricity did not always fully reach Latvia and Lithuania. As a result,
electricity prices in Estonia were lower than in Latvia, while in Lithuania they were higher.
Enefit notes that with the growing share of solar and hydropower, the use of fossil fuels for electricity generation in Latvia decreased by more than 85% in March. This had a significant impact on price levels, as renewable energy sources are considerably cheaper than fossil-based production.
Enefit in Latvia is owned by the Estonia-registered company Enefit. According to Firmas.lv, Enefit Latvia reported a turnover of 171.395 million euros and a profit of 4.333 million euros in 2024. Financial data for 2025 have not yet been published. The company was registered in 2006, and its share capital amounts to 52.485 million euros.
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