Latvian electricity market overview

In March 2024, the average electricity price in the Latvian bidding area decreased to EUR 68,21 per megawatt hour (EUR/MWh), which is 9% less than in February, while compared to March 2023, the price is 22% lower.

Highlights in March :

• Total Latvian electricity production in March increased by 23% compared to February and by 11% compared to March 2023, while consumption decreased by 2% compared to February and by 4% compared to March 2023;
• In the Baltic States, a similar trend was observed, with total electricity generation in the Baltic States together increasing by 13% and consumption decreasing by 3% compared to February;
• With the spring floods continuing, 695 gigawatt hours (GWh) or 73% of all electricity was generated by hydropower plants in March, the highest since April 2023, an increase of 80% compared to February and 21% compared to March 2023;
• As the days get longer and the installed capacity of solar power plants grows, March saw the highest ever production of electricity from solar power plants, with a total of 23 GWh generated, 461% more than in February and 421% more than in March 2023;
• Since the beginning of the year, Latvia has been experiencing a surplus of electricity generation, with 158% of the country's electricity needs produced in March and 350 GWh exported to neighbouring Lithuania and Estonia;
• The average monthly electricity price in Latvia fell to 68,21 EUR/MWh, the lowest level since April last year, when it was only slightly lower. A similar trend was also observed in neighbouring countries: in Lithuania, the price level was identical to Latvia, while in Estonia the average monthly price was slightly higher at 68,26 EUR/MWh;
• In the Baltic interconnected trading areas, March showed different trends in relation to the average electricity price: in Finland and Sweden's 4th Zone the price increased, by 15% to 59,38 EUR/MWh and by 14% to 56,05 EUR/MWh respectively, while in Poland the price decreased by 1% to 75,36 EUR/MWh;
• The fall in electricity prices was driven by lower gas prices, as well as warmer weather, which contributed to lower electricity consumption, and more intense flooding, which increased the inflow of water into rivers and consequently increased electricity production at hydroelectric power plants;
• In March, compared to February, electricity imports to the Baltic countries decreased by 19% - from Poland by 25%, from Sweden's 4th Zone and from Finland by 17%, and compared to March 2023, imports to the Baltics decreased by 25%. Overall, electricity imports to the Baltics have been declining for four months and in March were almost 2 times lower than in December 2023;
• In March, a total of 694 992 GOs were issued in the Latvian Domain for GOs, 435% more than in February.

Raw data can be downloaded here.

Electricity production and consumption balance in Latvia*

* Here and in the following review, the electricity produced is the electricity injected into the grid and the electricity consumed is the electricity received from the grid for consumption.

** Fossil energy source – fossil gas; renewable energy sources – hydro, solar, wind, biogas and biomass.

Balance of the electricity production and consumption in the Baltic States

Interconnection load and electricity prices

Price comparison between neighbouring bidding areas

Load of the Baltic States interconnections

Electricity import to the Baltic States

GUARANTEES OF ORIGIN (GOs)

Statistics of the activity in the Latvia Domain for GOs

BALANCING MARKET IN THE BALTIC STATES

Imbalance prices in the Baltic States

Highest and lowest bid prices

Total activated energy

Average hourly standard bid size

In case of any doubts, questions or inaccuracies, please contact us at [email protected]. 

The information contained in the Market Overview is provided for informational and educational purposes only. Nothing contained in the Market Overview is to be construed or used as a basis for investment or as a basis for any claims against AST. 

Abbreviations and designations used:

LV - Latvia trade area, LT - Lithuania trade area, EE - Estonia trade area, PL - Poland trade area, FI - Finland trade area, SE4 - Sweden's fourth trade area, AT - Austrian trade area, BE - Belgium trade area, DE-LU - German- Luxembourg trade area, FR - France trade area, NL - the Netherlands trade area, DK1 and DK2 - Danish 1. and 2. trade area.

The data sources for the balance of electricity produced and consumed in Lithuania and Estonia are operational data from the ENTSO-E Data Transparency Platform, which is a central collection and publication of electricity generation, transportation and consumption data and information for the pan-European market.

Load = monthly total commercial flow in kWh / monthly total net transfer capacity in kWh ("Net Transfer Capacity" NTC).

Nord Pool is a Nordic electricity exchange where, based on market principles, the electricity price of the Latvian trading area is determined.

Guarantee of Origin (GO) is an electronic document, that proves the origin of the generated electricity. GOs are uniquely identifiable, transferable, and therefore tradable and used (by cancellation) to provide information of supplied energy to the end-consumer. One GO = 1 MWh generated and injected into the grid that has an expiration of 12 months after the end of the production period.

* Here and in the following review, the electricity produced is the electricity injected into the grid and the electricity consumed is the electricity received from the grid for consumption.

** Fossil energy source – fossil gas; renewable energy sources – hydro, solar, wind, biogas and biomass.

[1] In Latvia there are 10 distribution system operators – for more information visit https://www.sprk.gov.lv/content/pakalpojumu-sniedzeji-1

[2] Electricity imports are not commercial transactions, but electricity that has physically entered the network from other countries.

[3] Electricity exports are not commercial transactions, but electricity physically transferred from the network to other countries.

[4] According to the (ENTSO-E) definition, which does not include electrical self consumption.