Latvian electricity market overview

In June 2022, the average electricity price in the Latvian trading area increased to EUR 218,29 per megawatt hour (MWh), which is 32,9% more than in May, but compared to June 2021, the price is 186% higher.

Highlights in June:

• In June, 278,793 MWh of electricity was produced in Latvia, which is 21% less than in May and 31% less than a year ago, while electricity consumption in Latvia was 538,011 MWh, which is 6% less than in April and 3% less than a year ago;
• Thus, 52% of the electricity consumed in the country was produced in June, which is a drop compared to May, when 70,5% of the required amount was produced, the missing amount - 259,218 MWh - was imported from neighboring countries;
• The largest drop in the amount of electricity produced can be observed at Daugava HPP - 208,081 MWh of electricity was produced in June, which is 33% less than in May and 15% more than a year ago;
• Large cogeneration plants were almost not operated in June - their total hourly load varied from 5 to 21 MW, a total of 9,036 MWh of electricity was produced, which is 64% less than in April and 11.4 times less than a year ago, the decrease is due to the still high prices of gas and CO2 emissions quotas;
• In the volume produced by wind stations in June, compared to May, there is a decrease of 30%, but compared to June 2021 - an increase of 65%;
• In June, Latvia reached the historically highest monthly average electricity prices since the opening of the electricity market - 218,29 EUR/MWh, in Lithuania the price was even higher - 223,16 EUR/MWh, while in Estonia the increase was not so great and the price reached 173,83 EUR/MWh. the difference can be explained by the unavailability of the interconnection Valmiera - Tartu due to its reconstruction, as a result of which it was possible to import a smaller amount of electricity from Estonia to Latvia;
• Since May 22, 2022, due to the sanctions imposed in connection with the Russian invasion of Ukraine, it is no longer possible to import electricity from Russia, thus the import from the countries of the European Union has increased by 21%, reaching 1,064,511 MWh - Poland exported 97,655 MWh to the Baltic States, or 27% more than in May, while imports from Sweden and Finland increased by 21%, reaching 419,491 and 547,365 MWh of electricity respectively.

ELECTRICITY GENERATION IN LATVIA JUNE 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).

Commercial electricity imports to the Baltic States from third countries (Russia) take place on the Latvian-Russian border (LRI-LV) and the Lithuanian-Kaliningrad border (LT-LKAL), according to NordPool data.

[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.