The average electricity price in Latvia’s commercial region increased to 167.22 EUR/MWh in March, which is 59.7% more when compared to February. Compared to March 2021, the price has increased 3.8 times, as reported by representatives of Latvian transmission system operator JSC Augstsprieguma tīkls.
After a moderate drop in the first two months of the year, prices in Europe increased again, exceeding historically the highest level observed in December 2021. In Baltic States, as well as interconnected commercial regions – Poland, Sweden’s fourth commercial region, and Finland – prices increased more calmly and did not exceed last December’s record.
The price rise in Europe March 2022 was caused by a number of factors –
lower wind energy generation when compared to records observed in January and February, the gas price increase following Russia’s invasion of Ukraine, as well as the price of CO2 quotas, which remain high even though they dropped by 18% in March.
Imports of electricity to Baltic States from Russia dropped 38% when compared to February and 62% when compared to March 2021, because since Russia invaded Ukraine, the country’s ability to export electricity to Baltic States to reduce the possible negative influence risk on Baltic energy transmission system’s stability and security has become significantly limited.
Imports from Finland to Baltic States increased 23% in March, whereas imports from Sweden and Poland have increased 7% and 13%/ The general exports of electricity from European countries to Baltic States have increased 10% when compared to February and 42% when compared to March 2021.
Increase of imports from Finland benefited from significantly lower electricity price, as well as available interconnections – their load was 95% last month.
Finland’s average electricity price in March was 86.48 EUR/MWh. For 34% hours it was equal to the price of electricity in Estonia. The big price difference between Baltic States and Finland indicates that even though the entire Finnish-Estonian interconnection capacity was available to the market, local electricity generation in Baltic States is insufficient at such a low price offer.
The low electricity price in Finland can be explained with cheaper electricity available in neighbouring zones, technical limitations for exports to Sweden’s other commercial regions, as well as sufficient local electricity generation at current prices.
Augstsprieguma tīkls reports that on 14 March the third block of Olkiluoto NPP joined the network. This provided an average of 400 MW of constant load.
Imports from Russia to Finland did not go down, unlike imports to Baltic States. Instead imports increased and currently there isn’t is no drop observed for mutual trade and the portion sold using Nord Pool exchange.
Augstsprieguma tīkls is an independent Latvian power transmission system operator that ensures operations of the electricity transmission network and security of Latvia’s electricity system’s power supply, provides transmission system services based on published transmission service tariffs, provides operational management of the transmission system and provide a safe, stable transmission of electricity within the system. Augstsprieguma tīkls is owned by the Latvian state.
Augstsprieguma tīkls is the biggest shareholder of Latvia’s natural gas system operator JSC Conexus Baltic Grid and owns 68.46% of shares.
Electricity price in Latvia up 59.7% in March
