Electricity prices in Latvia and Baltics surge amid low renewable output

Average electricity prices in Latvia increased by 84% over the past week, reaching 123.83 EUR per megawatt-hour (MWh), according to Latvenergo. Lithuania saw a similar 84% increase, with prices at 123.8 EUR per MWh, while Estonia's prices rose 2.1 times to 93.07 EUR per MWh.

The rapid price surge across the Baltic region was driven by a significant drop in renewable energy generation. In the Nord Pool region, solar power generation fell by 22% to its lowest level since April, and wind power generation decreased by 25%.

Price disparities between the Baltic states were exacerbated by limited interconnection capacity and the partial reservation of transmission capacity for balancing market services, which restricted cheaper electricity imports into Latvia and Lithuania.