Latvian electricity market overview

The most important events in the market in 2024:

Electricity price:

• In 2025, the average electricity price in Latvia decreased by 2% compared to 2024, reaching 85,72 EUR per megawatt-hour (EUR/MWh);
• On 1 October 2025, the entire European electricity day‑ahead market transitioned to 15‑minute trading periods, allowing market participants to forecast and plan their production and consumption more accurately and to make fuller use of market opportunities;
• Electricity prices within trading intervals ranged between minus 23,58 EUR/MWh and 1173,65 EUR/MWh, while the lowest and highest daily prices were minus 2,61 EUR/MWh on 29 June and 312,08 EUR/MWh on 31 March, respectively;
• The number of trading intervals in which Latvia and Estonia had identical prices decreased by 21 percentage points compared to 2024, driven by power line maintenance works in Estonia;
• The number of negative electricity prices decreased not only in the Baltic States but also across Europe.

Electricity production and consumption

In Latvia:

• The total volume of electricity produced and delivered to the grid in Latvia in 2025 reached 5 798 gigawatt-hours (GWh), which is 2% less than in 2024, while electricity consumption increased by 3% to 7 201 GWh;
• Latvia’s electricity consumption was covered by domestic generation at a level of 80,5% in 2025, which is 4 percentage points less than in 2024; the missing electricity volume – 1 404 GWh – was imported from neighbouring countries;
• In February 2025, Latvia produced more electricity than it consumed, meaning that electricity consumption was covered by domestic generation at 116%;
• Electricity production at solar power plants continued to grow in 2025, increasing by 70% compared to the previous year to 678 GWh. As a result, the volume of electricity produced by solar power plants maintained its previous position, ranking third after hydropower plants and natural gas plants, generating 11,7% of total electricity output — an increase of 5 percentage points compared to 2024;
• Electricity generation decreased across other production types. The fastest decline — 27% — was recorded at wind power plants, production at biogas plants decreased by 24%, natural gas and biomass plants generated 2% less electricity than in 2024, while hydropower plants (HPPs) saw an 8% decrease. The reduction in HPP output is explained by the flood season — extensive spring floods were not observed during the year;
• Hydropower plants, as usual, remained the main source of electricity generation in Latvia, producing slightly more than half — 51% — of the total volume of electricity delivered to the grid, although this share continues to decline each year;
• In the autumn of 2025, AST completed work on battery energy storage systems (BESS) in Rēzekne and Tume, marking the final project in the Baltic synchronization with the European power system. Starting from 29 October, both AST BESS units began participating in the balancing capacity market, enabling Latvia to reduce balancing capacity maintenance costs.

In the Baltic States:

• Trends in electricity generation and consumption differed among the Baltic States. Total electricity generation in the Baltics increased by 5% to 19 426 GWh, driven by an 18% increase in the volume of electricity produced and delivered to the grid in Lithuania, while in Latvia and Estonia this volume decreased by 2% and 6%, respectively. Meanwhile, electricity consumption in the Baltics decreased by 1% to 26 855 GWh, with consumption increasing by 3% in Latvia, decreasing by 3% in Lithuania, and decreasing by 1% in Estonia;
• The share of national consumption covered by domestic generation in the Baltic States together reached 72,3%, which is an increase of 4 percentage points compared to 2024. Latvia maintained the highest level among the Baltic States — 80,5%; meanwhile, Lithuania’s level increased by 14 percentage points to 76,8%, while Estonia’s decreased by 3 percentage points to 58,3%.

Electricity import to the Baltic States:

• On 8 and 9 February 2025, the Baltic States successfully carried out desynchronization — the disconnection of high‑voltage lines from the Russia‑controlled power system — and full synchronization with the Continental European electricity system. This was a significant step strengthening energy independence, stability and integration with the EU electricity market. These actions did not affect consumers — Latvia’s power system remained stable and secure;
• Electricity imports to the Baltic States decreased by 13,3% compared to 2024. The sharpest decline in transmitted electricity volume was from Poland — a 72,5% decrease, imports from Sweden decreased by 18,4%, while imports from Finland increased by 16,8%. Most electricity imported into the Baltic States came from Finland — approximately half or 51% of the total electricity import;
• Electricity imports from the Nordic countries into the Baltics were negatively affected by a failure of the “EstLink 2” interconnector between Estonia and Finland, due to which from 25 December 2024 to 20 June 2025 only 358 MW of the total 1016 MW transmission capacity was available — corresponding to the “EstLink 1” interconnector.

Guarantees of Origin (GOs):

• The number of issued GOs decreased by 38% compared to 2024, which can partly be explained by lower generation from renewable energy sources;
• The number of cancelled GOs increased by 42%, indicating rising interest in green energy and a more environmentally friendly lifestyle in Latvia;
• Import and export trends remained unchanged — most GOs in 2025 were imported from Estonia, while the largest exports were to Norway.

Balancing market:

• On 4 February 2025, the Baltic balancing capacity market, established by the Baltic transmission system operators AST, Elering and Litgrid, began operating, ensuring the capacity reserves needed for system balancing and frequency control;
• On 10 April 2025, AST successfully joined the PICASSO platform for the European automatic Frequency Restoration Reserve (aFRR) energy exchange. This platform not only provides market functionality and access to a unified regional market but also enables optimisation of reserve volumes, thereby reducing balancing costs;
• In the summer of 2025, increased activity was observed in the Baltic balancing energy market, causing sharp price fluctuations. This situation resulted from the early development stage of the balancing market in the Baltics, the limited number of participants and generation units involved in balancing, and the market’s heightened sensitivity to even small changes in supply;
• The average imbalance price in Latvia continued its downward movement from the previous year and decreased by 6% to 84,81 EUR/MWh in 2025.

Raw data for 2025 can be downloaded here.

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

Starting from May 2024, all calculations and data in the monthly electricity overviews are processed according to the Eastern European Time (EET) zone. In the annual overview, all monthly data are adjusted to the EET time zone and are based on the most up-to-date information, which may differ from the monthly overviews if the data source has updated the data after the monthly overview.

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.

** Battery Energy Storage Systems (BESS) are not considered a production type, as they store electricity received from the grid. When this electricity is fed back into the grid, it is included in the total production. As of 1 December 2025, the BESS volume includes the electricity delivered to the grid by AST’s Battery Energy Storage Systems in Rēzekne and Tume, and the electricity received from the grid by AST BESS is included in Latvia’s electricity consumption volume.

*** 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  [5]

GUARANTEES OF ORIGIN (GOs)

Statistics of the activity in the Latvia Domain for GOs

Statistics on exports and imports in the Latvia Domain for GOs in 2025

BALANCING MARKET IN THE BALTIC STATES

Imbalance prices in the Baltic States

Highest and lowest bid prices

Total activated energy

Average 15 minutes 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.

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

The ENTSO-E Transparency Platform is a central collection and publication of electricity generation, transportation and consumption data and information for the pan-European market.

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] Here as electricity imports are not commercial transactions, but electricity that has physically entered the network from other countries.

[3] Here as 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.

[5] Here as electricity imports are commercial transactions.