Wind Power Drop Pushes Lithuania's Electricity Prices Up 41% in May

Lithuania experienced a significant surge in its average wholesale electricity price in May, climbing 41% to 82 euros per megawatt-hour (MWh). The primary driver behind this increase was a notable decrease in wind power generation, according to grid operator "Litgrid".

Despite the drop in wind energy, which constitutes 40% of Lithuania's domestic production, solar power generation saw a substantial boost of 57%. This increase in solar output helped to partially offset the reduced wind generation, with solar contributing a third of the country's total electricity production. "During the day, this helped to maintain a lower price level, especially at the end of the month, when prices were often close to zero, and sometimes even negative," said Deividas Šikšnys, head of "Litgrid's" Market Development Department.

Lithuania's domestic power plants met 93% of the country's electricity demand in May. However, overall electricity imports also rose by 3% compared to April, with the majority coming from Latvia (56%) and Sweden (37%). Conversely, electricity exports decreased slightly.

Compared to the previous year, the average electricity price in May was higher, reaching 76 euros per MWh in 2024, up from 68 euros per MWh in May 2023. Latvia's average price mirrored Lithuania's at 82 euros per MWh, while Estonia's was lower at 60 euros per MWh.

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In May, wholesale electricity prices in Lithuania were most influenced by intersystem connections and changes in local production. In Lithuania, power plants ensured 93% of the demand, but daytime stable wind generation decreased, and it was partially compensated by a 57% increase in solar production. During the day, this helped to maintain a lower price level, especially at the end of the month, when prices were often close to zero, and sometimes even negative.