Latvian electricity market overview

The average monthly price of electricity in August in Latvia reached triple digits for the first time since February, stopping at 102,49 EUR per megawatt hour (EUR/MWh), which is 22% more than in July, while compared to the record high in August 2022, this year the price is 356% lower.

Highlights in August:
  • In August, 237 gigawatt hours (GWh) of electricity were transferred to the grid in Latvia, which is 61% more than in July and 10% less than a year ago;
  • Significantly - the amount of electricity delivered by gas power plants increased by 637% or up to 89 GWh in August, thus balancing the price of electricity in the Baltics at a time when there was a pronounced capacity deficit in Finland and, therefore, limited opportunities to export electricity to the Baltics;
  • Hydropower plants transferred 78 GWh of electricity to the network, which is 35% more than in July, wind power plants saw a drop of 36% to 15 GWh, solar power plants - a drop of 13% to 18 GWh, while biomass plants transferred 21 GWh of electricity to the network, which is 20% more than in July;
  • Thus, in August, 43% of the electricity consumed in the country was produced and transferred to the network in Latvia, while the missing amount - 310 GWh of electricity was imported from neighboring countries;
  • Electricity prices did not increase in all three Baltic countries - in Latvia and Lithuania by 22% or up to 102,49 EUR/MWh, but in Estonia by 19% or up to 94,38 EUR/MWh;
  • An increase in the monthly average price can also be observed in the two interconnected electricity trading areas of the Baltic States - Sweden's zone 4 by 42% and in Finland by 102%, while in Poland, with which the Baltic States are interconnected, the price decreased by 8%, but average prices remained higher in the month. level than in the Baltic States and Scandinavia;
  • The price of electricity in the Baltics was significantly affected by the price jump in Finland, which was caused by a combination of several circumstances - planned and unplanned outages of power plants and transmission lines, this was especially felt on August 21, when 3369 MW of the country's total production capacity, as well as 2500 MW of transmission, were unavailable. capacities for electricity import;
  • The decrease in the amount of electricity produced in Finland was compensated by gas power plants in Latvia, thus balancing the price, and on a monthly basis, cogeneration plants in Latvia transferred 637% more to the network than in July, or 89 gigawatt hours of electricity, 73% of it in the period from August 21 to 26;
  • Due to the unavailability of Finnish electricity, which was replaced by that produced in Latvia, traffic jams were observed in the direction from Latvia to Estonia between August 21 and 24, when prices in Estonia were higher than electricity prices in the Latvian zone, although the average monthly price in Estonia was lower;
  • Compared to the previous month, the total amount of electricity imported to the Baltic States has decreased by 2,6%, the amount of imports from Poland has increased by 216%, while the amount of Nordic imports has decreased by 0,3% from Sweden and 17,5% from Finland.
Electricity production and consumption balance in Latvia*

Production type

August 2023, MWh

Compared to the previous month, %

August 2022, MWh

Hydro

78 427

35%

80 755

Fossil Gas

89 108

637%

115 571

Wind

14 516

-36%

12 318

Biomass

21 584

20%

29 493

Biogas

15 700

0%

20 123

Solar

18 288

-12%

6 031**

Total production, including:

237 622

61%

264 292**

– In transmission grid

180 765

112%

205 456

– In distribution grid

56 858

-8%

58 837

*The market review includes information on electricity produced in Latvia and transferred to the grid, as well as received from the grid
** Clarified historical data

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

 

August 2023, MWh

Compared to the previous month, %

August 2022, MWh

Electricity import to Latvian electricity grid [1]

543 885

5%

535 738

Export from Latvian electricity grid [2]

233 415

54%

224 859

Net exchange

310 471 (deficit)

-15%

310 879 (deficit)

 

August 2023, MWh

Compared to the previous month

August 2022, MWh

Electricity consumption in Latvia [3]

548 089

7%

575 172**

Electricity consumption covered by local generation*

43%

15 (percentage points)

46%**

*The market review includes information on electricity produced in Latvia and transferred to the grid, as well as received from the grid
** Clarified historical data

Interconnection load and electricity prices

Bidding area

Average price in August 2023, EUR/MWh

Compared to previous month, %

Average price in August 2023, EUR/MWh

Lowest hourly price in August 2023, EUR/MWh

Highest hourly price in August 2023, EUR/MWh

Lowest daily price in August 2023, EUR/MWh

Highest daily price in August 2023, EUR/MWh

NPS Finland

66,44

102%

261,49

-11,60

549,95

-4,56

243,73

NPS Estonia

94,38

19%

361,35

-9,97

549,95

15,37

243,73

NPS Latvia

102,49

22%

467,75

-9,97

549,92

15,37

203,36

NPS Lithuania

102,49

22%

480,39

-9,97

549,92

15,37

203,36

NPS Sweden (SE4)

41,78

17%

289,28

-11,60

258,55

-4,56

105,15

Poland

107,08

-8%

268,69

11,36

216,18

38,96

146,81

Price comparison between neighbouring bidding areas

Comparable bidding areas

Hours with the same price in August 2023, %

Compared to previous month (percentage points)

Hours with the same price in August 2022, %

NPS FI & EE

50,7%

17,3

60,8%

NPS EE & LV

82,5%

-7,7

55,2%

NPS LV & LT

100,0%

0,0

94,5%

NPS LT & SE4

14,4%

-10,5

11,2%

Load of the Baltic States interconnections

Interconnection

Average load in August 2023, %

Compared to previous month (percentage points)

Lowest daily load in August 2023, %

Highest daily load in August 2023, %

LV -> LT

11,9%

-4,4

0,4%

43,6%

EE -> LV

57,4%

-13,0

4,7%

100,0%

LT -> LV

13,2%

11,0

0,0%

47,9%

PL->LT

38,1%

26,2

0,0%

83,9%

LT->PL

28,9%

-21,5

0,0%

92,1%

SE4->LT

98,6%

0,5

92,8%

100,0%

FI->EE

80,0%

-14,9

8,3%

100,0%

LV>EE

7,4%

7,4

0,0%

66,8%

EE>FI

3,6%

3,6

0,0%

39,4%

LT>SE4

0,0%

-

0,0%

0,0%

Electricity import to the Baltic States

 

August 2023, MWh

Compared to previous month, %

August 2022, MWh

Import from third countries

0

0,0%

0

Import from EU countries, including:

1 238 066

-2,6%

1 177 924

From Poland

137 151

216,0%

101 154

From Sweden

509 376

-0,3%

495 008

From Finland

591 539

-17,5%

581 762

BALANCING MARKET IN THE BALTIC STATES
Balancing energy prices in the Baltic States

Country

Imbalance price in August 2023, EUR/MWh

Compared to previous month, %

Imbalance price in August 2023, EUR/MWh

Estonia

148,11

54%

469,62

Latvia

155,03

60%

493,69

Lithuania

155,54

61%

493,88

 

Highest and lowest bid prices

 

Estonia

Latvia

Lithuania

 

Upward

Downward

Upward

Downward

Upward

Downward

Highest price, EUR/MWh

680,4

554,95

350

50

1650

120,02

Lowest price, EUR/MWh

0

-50,06

70

0

105

-244,53

Total activated energy

 

Upward

Downward

 

Total activated energy in August 2023, MWh

Compared to previous month, %

Total activated energy in August 2023, MWh

Compared to previous month, %

Estonia

1736

25%

2583

219%

Latvia

3326

4%

2335

206%

Lithuania

15964

61%

12638

2%

Finland

913

34%

7783

13%

Sweden

163

-40%

5547

-49%

Average hourly standard bid size

 

Average hourly standard bid size in August 2023, MW

Compared to previous month, %

Hours with no standard bids in August 2023, %

 

Upward

Downward

Upward

Downward

Upward

Downward

Baltic States

548

229

-5%

17%

0%

1%

Estonia

17

14

28%

75%

0%

3%

Latvia

46

22

4%

43%

15%

53%

Lithuania

485

192

-7%

12%

0%

11%


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, LBI - Lithuania-Belarus Import trade area, LRI - Latvia-Russia import trade area.

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.

[1] Here and in the following review, electricity imports are not commercial transactions, but electricity that physically entered the network from other countries.

[2] Here and in the following review, electricity exports are not commercial transactions, but electricity physically transferred from the grid to other countries.

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