Latvian electricity market overview

In October 2022, the average price of electricity in the Latvian trading area decreased to EUR 189,28 per megawatt hour (MWh), which is 46,1% less than in September, but compared to October 2021, the price is 77,9% higher.

Highlights in October:

• In October, the total amount of electricity produced in Latvia was 220,014 MWh, which is 9,4% more than in September and 21% less than a year ago, while 572,414 MWh of electricity was consumed, which is 7,7% more than in September and by 6,8% less than a year ago;
• In October, the historically highest wind energy development was achieved - wind power plants produced 28,045 MWh of electricity, or 106% more than in September and 61% more than a year ago. The increase is related to the start of work of all generators of the Tārgale wind power plant and more favorable weather conditions;
• The amount of electricity produced in cogeneration has decreased significantly - in large stations it has decreased by 80,6%, and in stations with a capacity of up to 10 MW - by 89,5%, while the decrease compared to October 2021 is 84% ​​in large and 99% in small ones at stations;
• Latvia's electricity consumption was covered by local generation in the amount of 38,4%, while the remaining required amount of electricity - 352,399 MWh was imported from neighboring countries;
• The decrease in consumption is related to the previously observed increase in electricity prices - in August, the historically highest average monthly electricity price was reached since the opening of the market, which forced people to look for opportunities to reduce consumption in September and October;
• Likewise, the reduction of listed consumption in households was facilitated by the installation of micro-generators or solar panels - if in the fall of 2021 the micro-generation capacity installed in Latvia was 16 MW, then this year - already 80 MW. Currently, according to the current procedure, only the amount of electricity transferred to the network is accounted for, but not all of that produced in microgeneration, part of which is consumed at the time of production, which in turn reduces the need for households to buy electricity from the network;
• After the records of electricity prices in the summer months, in October, the drop in the monthly average electricity price experienced already in September continues, while the price differences in the Baltic countries decrease;
• The decrease in prices both in the Baltics and in Europe is associated with gas prices, which are almost two times lower compared to May in October;
• In October, after a longer break, electricity prices in the Baltics fell to a record low level of 8 cents per MWh in certain hours, but in the two interconnected Baltic trading areas - Finland and Sweden's 4th price area - a negative price was found - minus 0.99 EUR (traders even charged consumers extra for the use of electricity during this hour). Such prices are typical for periods of high wind farm development and low consumption at the same time, usually during nighttime storms.

ELECTRICITY GENERATION IN LATVIA OCTOBER 2022

* Rīgas TEC-1, Rīgas TEC-2, AS "Rīgas Siltums", SIA "Juglas Jauda", SIA "Fortum"

INTERCONNECTION LOAD AND ELECTRICITY PRICES

COMPARISON OF PRICES BETWEEN NEIGHMOURING PRICES AREAS

CONGESTION OF THE BALTIC INTERCONNECTIONS

IMPORT OF ELECTRICITY TO THE BALTIC STATES

Balancing market in the Baltics

BALANCING ENERGY PRICES IN THE BALTICS

HIGHEST AND LOWEST BID PRICES

TOTAL ACTIVATED ENERGY BY COUNTRY, MWh

AVERAGE STANDARD BID AMOUNT IN HOUR, MW

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).