Baltic Region Avoids Price Shock Thanks to Solar and Wind Power

Latvia and its Baltic neighbors have managed to avoid an electricity price shock thanks to an unusual combination of sun and wind.

In July, the volume of local electricity production in the region reached 83% of consumption, with solar and wind farms producing 73% of the generated power. This has led to a significant decrease in electricity prices: in Latvia and Lithuania, prices dropped by 19% to €74.95 and €75.86 per megawatt-hour respectively, while in Estonia they fell by 32% to €43.93.

According to Gatis Jungkhans of JSC 'Augstsprieguma tīkls', the intense heat wave across Europe increased electricity demand as people used air conditioners, but production at hydroelectric and nuclear power plants decreased due to the hot weather. Gas power plants also became less efficient during this time.

The situation was further complicated by the high cost of natural gas in Europe, which was twice as expensive as it was in winter. However, thanks to their reliance on renewable energy sources, the Baltic region has been able to periodically export electricity to neighboring countries such as Scandinavia and Poland, while importing power from these regions at other times.

In July, total electricity imports from EU countries to the Baltic states increased by 7% compared to June, reaching 736 gigawatt-hours. This was largely due to a 19.4% rise in imports from Finland to 552 gigawatt-hours.