Lithuania's Electricity Price Stable Amid Surge in Solar Power

The average wholesale electricity price in Lithuania held steady at 39 euros per megawatt-hour (MWh) last week, according to energy transmission operator Litgrid. This stability was largely driven by a significant increase in solar power generation across the Baltic and Nordic regions.

In Lithuania specifically, solar power production surged by 13% during the week of August 3-9, contributing nearly half of the country's total domestic electricity generation. While wind power generation saw a 21% decrease, the robust performance of solar farms, combined with ample low-cost electricity imports from Sweden, helped maintain the stable price point. This kept electricity prices in the Baltic states among the lowest in Europe.

Electricity demand in Lithuania increased slightly by 1% to 243 gigawatt-hours (GWh) over the week. Local power plants met 82% of this demand, producing a total of 199 GWh, a marginal 1% decrease from the previous week. Solar power was the dominant source, generating 99 GWh, followed by wind power at 59 GWh, hydropower at 18 GWh, and thermal power plants at 15 GWh.

Overall electricity imports into Lithuania increased by 4% to 101 GWh. The majority of imports, 67%, came from Sweden, with 31% from Latvia and 2% from Poland. Conversely, electricity exports from Lithuania decreased by 20% to 49 GWh, primarily directed towards Poland (58%) and Latvia (22%).

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Low prices continue to be supported by high renewable energy generation in the Baltic and Nordic countries. In Lithuania, solar power generation increased by 13% over the week and accounted for almost half of all local electricity production. Although wind power generation decreased by 21%, increased solar production and sufficient cheap import flows from Sweden helped maintain stable electricity prices.