Lithuania's electricity prices jump 17% in a week amid falling wind power

Electricity prices in Lithuania surged by 17% in the past week, reaching an average of 96.35 euros per megawatt-hour (MWh). This sharp increase follows similar trends in neighboring Baltic countries, with Latvia experiencing a 12% rise and Estonia a 14% increase.

Mantas Masalskis, Head of Business Solutions at Elektrum Lietuva, attributed the price hike primarily to a substantial 45% decrease in wind power generation across the Baltic region. This decline in wind energy output reached its lowest weekly level for the year within the broader Nord Pool region. Conversely, solar power generation in the Baltics increased by 45%, contributing more affordable electricity to the market.

Masalskis also pointed to limited electricity transmission capacities as a factor influencing price differences between the Baltic states. Repair work on the Estonia-Latvia interconnection and the reservation of some transmission capacity for balancing services restricted the import of cheaper electricity into Latvia and Lithuania.

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Last week, wind power generation in the Baltic states decreased by as much as 45%, reaching the lowest weekly level of the year in the entire Nord Pool region. At the same time, solar power generation in the Baltic states increased by 45%, so the market saw an increased supply of cheaper electricity.

Overall electricity demand in the Baltic states increased by 1% to 460 gigawatt-hours (GWh) last week. Lithuania consumed 222 GWh, a 4% increase from the previous week, while Latvia's consumption rose by 5% to 124 GWh. Estonia's consumption, however, decreased by 7% to 114 GWh.

Electricity generation across all three Baltic countries rose by 2% to 386 GWh. Lithuania produced 200 GWh, a 6% decrease from the prior week. Latvia's generation increased by 22% to 104 GWh, and Estonia's grew by 2% to 82 GWh. Elektrum Lietuva data indicates that Lithuania generated 90% of its electricity needs domestically, with Latvia at 84% and Estonia at 72%. Collectively, the Baltic states produced 84% of the electricity consumed in the region last week.

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Price differences between the Baltic countries were also caused by limited electricity transmission capacities – due to repair work on the Estonia and Latvia interconnection and the reservation of part of the transmission capacities for balancing services, the import of cheaper electricity into Latvia and Lithuania was limited.