Estonia's Electricity Prices Soar as Natural Gas Costs Skyrocket

The average price of electricity in Estonia was lower in August compared to last year, at €59 (5.9 cents) per megawatt-hour, down from €77.30 (7.7 cents) a year ago.

However, this decrease was not due to increased wind and solar power generation but rather limited interconnection capacity with Latvia.

Marko Allikson of Baltic Energy Partners explained that Estonia's exchange electricity price was at the same level as Finland's for more hours than it was at the same level as Latvia's in August.

The second half of the month saw a significant increase in prices due to lower wind and sunshine in Europe, higher consumption, and rising natural gas prices.

Elektrum Marketing Manager Frederika Frey noted that while electricity prices fell in early August, this was also due to increased wind and solar power generation, but the situation changed rapidly as less renewable energy was generated, leading to a sharp price increase.