Litgrid: Electricity price fell 24% last week

Lithuania's wholesale electricity prices saw a notable decrease of 24% in the week of May 25-31, falling from 90 euros to 69 euros per megawatt-hour (MWh) on the Nord Pool exchange. This significant drop in price is attributed to a substantial rise in domestic electricity generation.

According to energy transmission operator Litgrid, local power generation increased by over a third, meeting 111% of Lithuania's electricity needs during that week. This surge in production led to a corresponding increase in electricity exports, which rose by 48% compared to the previous week. Consequently, overall electricity imports decreased by 34%.

Renewable energy sources played a crucial role in this development. Wind power generation surged by 59% to 116 GWh, while solar power generation increased by 26% to 92 GWh. Together, wind and solar farms accounted for 81% of the electricity produced in Lithuania during that period.

Despite the overall decrease in electricity demand by 2%, the increased local generation resulted in higher export volumes. Electricity exports from Lithuania rose to 100 GWh, with Sweden, Latvia, and Poland being the primary recipients. The transmission capacity utilization on the LitPol Link and NordBalt connections indicates robust cross-border electricity flow.

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The reduced electricity price in Lithuania was driven by local generation increasing by more than a third. Last week, Lithuania produced 111% of the country's electricity needs. Due to high local generation, export volumes also increased through intersystem connections – 48% more was exported than the previous week.