Electricity prices in Latvia reach the peak since market liberalization

In September the average monthly price reached 123.50 EUR/MWh, which is 41.4% more when compared to August. This is the highest electricity price observed in Latvia since the liberalization of the market, according to transmission system operator AS Augstsprieguma tīkls’ prepared report.
Electricity prices are up elsewhere in Europe as well: the price in Poland was 102.26 EUR/MWh in September, in other Baltic States, Denmark and Sweden’s 4th commercial region the price ranged between 120 to 124 EUR/MWh, in Germany, France, Belgium, Netherlands and Austria the average price reached about 135 EUR/MWh.
The price increase in Latvia is mainly related to the following reasons: considerable increase of gas and CO2 quota prices, lower capacity of water reservoirs in Norway, lower output of wind turbine parks. Because of these reasons, electricity prices on the exchange have increased. A short-term price increase was also caused in Baltic States for a couple of days because of maintenance of power lines.
In September there was a 33% decline of imports of electricity to Baltic States from third countries and by 19% from EU member states. Changes with imports are mostly related to increased production output in the Baltic States after a very low production level observed in August and technical limitations.
From 15 September onward the decision made by Lithuanian regulator caused a 19% decline of power transmission output from Russia to the Baltic States. The objective of this decision by Lithuania, according to authorities, is preventing energy produced by Astravets NPP from entering the Baltic market.
The drop of imports from Europe can be explained with four-day maintenance work performed on the Lithuanian-Swedish connection and three-day maintenance on the Finnish-Estonian connection. This means there as a 35% drop in output.