Electricity prices have fallen in Latvia. Seriously?

Last week, electricity prices in the trading zones of the Nord Pool exchange both increased and decreased. In Latvia and Lithuania, electricity prices fell on average by 45% to 27.42 euros per megawatt-hour, and in Estonia by 44% to 27.98 euros per megawatt-hour.

The average price in the Nord Pool system fell by 40% last week to 26.08 euros per megawatt hour. Hourly prices have been negative several times in the past week, including in the Baltic countries at times dropping to -10 euros per megawatt-hour.

At the same time, in Poland the price of electricity last week was 71.34 euros per megawatt-hour, in Germany – 51.87 euros per megawatt-hour, in the Netherlands – 48.94 euros per megawatt-hour.

Last week’s decline in power prices was driven by the Nord Pool region’s third-highest weekly wind power output this year, resulting in negative hourly power prices in nearly all trading areas.

In Latvia last week, electricity was produced 2.4 times more than consumption, in Estonia – 49% of consumption, in Lithuania – 78%. Overall, the Baltic countries produced 85% of the electricity required for consumption in the region.