Estonian energy outlook: Electricity and heating price forecasts

Energy forecasts for the upcoming winter suggest electricity prices in Estonia may remain lower than the previous year's peak. While prices exceeded 150 euro per megawatt-hour during last winter's cold spells, current futures suggest a range of 120–130 euro per megawatt-hour. This positioning sits between Finland, where futures are above 100 euro, and Lithuania, where they are approximately 140 euro.

Natural gas prices remain more volatile due to factors such as the situation in the Strait of Hormuz, competition with Asia for LNG, and the status of European gas storage, which is currently at roughly 67 percent capacity.

Regarding district heating, costs are heavily influenced by fuel types and network efficiency. In many Estonian networks, wood chips serve as the primary fuel. The price of wood chips has risen by approximately ten percent in some regions due to increased motor fuel costs affecting forestry and transport. While natural gas is often used as a reserve fuel, its impact on total heating bills varies depending on the specific network and local fuel availability.