In July 2022 the average electricity price in Latvia’s zone increased to 304.96 EUR/MWh, which remains historically the highest monthly average price for the second consecutive months since the liberalisation of the electricity market, as reported by Augstsprieguma tīkls JSC (AST).
July was the second consecutive month when historically the highest average electricity price was reached in Latvia since the liberalisation of the electricity market – 304.96 EUR/MWh.
In Lithuania the price was EUR 305.36 and in Estonia it was 233.21 EUR/MWh.
According to AST, the average electricity price rise in July was 39.7% when compared to June.
The price increase when compared to July 2021 was 245%.
Historically the highest electricity price in Latvia and Lithuania was observed between 18:00 and 19:00 on 21 July, when the price reached 2 100.08 EUR/MWh.
Also read: Peak in electricity prices observed in Latvia on 21 July
According to AST, the rapid price rise is related to the limited supply of electricity on the Baltic market – it is limited both due to ongoing repairs on Daugava’s hydroelectric power plant. As a result, the low water level causes hydroelectric power plants in Latvia produce little electricity.
The price is also affected by availability of as and its high price for electricity production at CHP plants and the decision to cease imports of natural gas from Russia.
Although the price reached record high electricity price in Estonia as well, the price increase there was not all that high. This is related to limited opportunities to bring electricity to Latvia, which is due to limited interconnection, which, in turn, is caused by planned repair work and high air temperature.
Limited production volumes promoted the increase of imports to Baltic States from EU member states. In total Baltic States imported 1 138 716 MWh of electricity, which is 7% more when compared to June.