Electricity prices in Latvia and Lithuania rise 34%

Electricity prices in Latvia and Lithuania rose by 34% over the past week, reaching an average of 114.58 EUR/MWh. In Estonia, prices increased by 7% to 64.32 EUR/MWh.

Several factors contributed to the price surge across the Nord Pool region, including reduced availability of nuclear power, lower hydroelectric reservoir levels, and high natural gas prices in Europe. In the Baltic states, the price hike was further driven by high energy costs in Central Europe, specifically in Germany and Poland.

In Latvia and Lithuania, the price increase was exacerbated by maintenance work on the Estonia-Latvia interconnection, which occurred between September 1 and September 16. This work reduced transmission capacity from Estonia to Latvia by 122 MW, limiting the ability to import cheaper electricity. Additionally, the reservation of some transmission capacities for balancing services further restricted cheap imports into the region.