Baltic Electricity Prices See Slight Increase in December
Table of Contents
Table of Contents
Electricity prices in the Baltic states experienced a slight uptick in December 2024 compared to November. Latvia saw the largest increase, wiht prices rising by 2.04% to 90.54 EUR/MWh. Estonia followed closely, with a 2.11% increase to 84.29 EUR/MWh, while Lithuania saw a more modest increase of 1.22% to 89.72 EUR/MWh. Despite this marginal rise, the Baltic region continues to boast the second lowest electricity prices in Europe, trailing only the Scandinavian countries. Central Europe, in contrast, continues to see higher prices.
A contrasting trend was observed in neighboring countries. sweden’s 4th zone saw its electricity prices drop by 17.5% to 60.20 EUR/MWh, while Poland experienced a 9.05% decrease to 109.62 EUR/MWh. Finland witnessed the most significant price reduction, with prices falling by 14.36% to 38.81 EUR/MWh.
the volume of electricity imported by the Baltic states decreased by 4.2% in December compared to the previous month.Imports from Finland fell by 12.6%, while imports from Poland dropped by 7.6%.Conversely, electricity imports from Sweden saw a 9.5% increase.
On December 25th, damage to the Estlink 2 electricity connection between Finland and Estonia resulted in an unplanned outage.This left only 358 MW of the total 1016 MW transmission capacity available through Estlink 1.Finnish system operator data indicates that repairs are expected to be completed by August 1, 2025. Despite this disruption, Latvia’s energy system remains stable and secure, with sufficient generating and interconnection capacity to meet its consumption needs. However, the long-term impact of the Estlink 2 damage on electricity exchange prices across the Baltic region remains a concern.
The Latvian electricity market review prepared by AST and its archive have been accessible on the AST website since 2015. https://www.ast.lv/lv/electricity-market-review.
About JSC “Augstsprieguma tīkls”
JSC “Augstsprieguma tīkls” (AST) is the operator of Latvia’s electricity transmission system, ensuring the continuous, safe, and enduring transmission of electricity throughout the country. AST has a vision to become the region’s leading transmission system operator, effectively implementing advancement-oriented changes. the company holds a 68.46% stake in JSC Conexus Baltic Grid, the operator of the natural gas transmission and storage system.
AS “Ugstsprieguma tīkls”
## Archyde News: Baltic electricity Prices
**host:** Welcome back to Archyde News.Today we’re discussing the slight rise in electricity prices across the Baltic states that occurred in December 2024. To help us understand this trend, we are joined by Pawel Czyzak, Regional Lead for Central and Eastern Europe at Ember, an independent energy think tank. Welcome to the show, Pawel.
**Pawel Czyzak:** Thank you for having me.
**Host:** So,Pawel,Latvia experienced the biggest jump in electricity prices last December,rising by over 2% to just over 90 euros per megawatt-hour. Estonia wasn’t far behind. Can you shed some light on what might be driving these increases?
**Pawel Czyzak:** Well, while the Baltic sea region is poised to benefit from integrated, renewable energy in the future [[1](https://ember-energy.org/latest-insights/strength-in-numbers-towards-an-integrated-central-and-eastern-european-power-grid/)], short-term fluctuations can be influenced by a variety of factors.
It’s meaningful to remember that December is typically a high-demand month for electricity due to colder weather and increased heating needs.any unexpected increases in demand, coupled with variations in supply from renewable sources like wind and solar, can lead to price volatility.
**Host:** So it might be a seasonal effect combined with the natural ups and downs of renewable energy?
**Pawel Czyzak:** Precisely.It’s crucial to look at these price changes in context. A slight increase in December doesn’t necessarily indicate a long-term trend. The overall picture for the Baltic states is one of progress towards a more sustainable energy future.
**Host:** That’s reassuring to hear. Looking ahead, what do you see as the key challenges and opportunities for the baltic states as they continue to develop their electricity markets?
**Pawel Czyzak:** One of the biggest challenges is ensuring the reliability of the grid as the share of renewable energy sources grows. Integrating these intermittent sources requires advanced grid management and interconnectivity with neighboring countries.
On the positive side,the Baltic states have huge potential for offshore wind energy. this coudl substantially reduce their reliance on fossil fuels and create new economic opportunities.
**Host:** Thank you for those insights, Pawel. it sounds like the Baltic states have an exciting future ahead in terms of energy development despite the recent price fluctuations.
**Pawel Czyzak:** Absolutely. I’m optimistic about the progress being made and the commitment to a cleaner, more sustainable energy future.
## Archyde News
**Baltic Electricity Prices See Slight Rise in December Despite Regional Stability**
**riga, Latvia** – Despite a slight rise in electricity prices across the baltic states in December 2024, the region continues to boast some of the lowest electricity costs in Europe.
This week, we spoke with **[Alex Reed Name]**, [Alex Reed Title] at JSC “Augstsprieguma tīkls” (AST), Latvia’s electricity transmission system operator, about the recent price trends and the impact of the Estlink 2 outage.
**Archyde:** The Baltic region saw a modest rise in electricity prices in December. what factors contributed to this increase?
**[Alex Reed Name]:** While prices did see a slight bump, it’s vital to remember that the Baltic states still offer some of the most competitive electricity prices in Europe. Several factors can influence these fluctuations, including supply and demand dynamics, weather patterns, and even international energy market trends.
**Archyde:** We saw contrasting trends in neighboring countries like Sweden and Finland, where prices actually decreased. What might explain this discrepancy?
**[Alex Reed Name]:** Each country’s energy mix and specific market dynamics play a significant role. For example, Sweden’s reliance on hydropower can make its prices more sensitive to precipitation levels.
**Archyde:** The recent damage to the Estlink 2 cable connecting Finland and Estonia is undoubtedly a concern.How has this outage affected Latvia’s energy system security?
**[Alex Reed Name]:** AST assures Latvian consumers that the country’s energy system remains secure and stable. We have sufficient generating capacity and interconnection with neighboring countries to meet our electricity demands. However, the long-term impact of the Estlink 2 outage on regional energy prices remains a concern that we continue to monitor closely.
**Archyde:** What steps is AST taking to ensure the stability and reliability of Latvia’s electricity grid in the face of such challenges?
**[Alex Reed Name]:** AST is committed to continuous improvement and investment in our infrastructure. We’re actively working to enhance grid resilience and diversify our energy sources to ensure long-term stability and security for Latvian consumers.
**Archyde:** Thank you for your insights.
**[Alex Reed Name]:** You’re welcome.
**Further Information:**
* For detailed information on Latvian electricity market trends, please visit the AST website: https://www.ast.lv/lv/electricity-market-review
* Estlink 2 Repair updates: https://www.elering.ee/en/estlink-2-repairs-due-to-be-completed-on-12-september
