Latvian electricity market overview

In May 2024, the average electricity price in the Latvian bidding area increased to EUR 75,80 per megawatt hour (EUR/MWh), which is 26% more than in April, while compared to May 2023, the price is 3% lower.

Highlights in May :

• In May, Latvia generated 495 GWh of electricity, 37% less than in April and 37% more than a year ago, while electricity consumption in Latvia reached 537 GWh, 4% less than in April and 1% more than a year ago;
• Lithuania and Estonia showed the opposite trend in May compared to Latvia. In Estonia, electricity production increased by 22%, while in Lithuania by 1%. Consumption in both countries, however, decreased, as in Latvia, by 6% in Lithuania and 12% in Estonia;
• In line with the decline in production from natural gas power plants, in Latvia, 99,26% of electricity was generated from renewable energy sources in May. At the same time, May is the first month this year when the balance between electricity produced and consumed in Latvia is negative and 8% or 42 364 MWh of the electricity consumed was imported from neighbouring countries;
• In accordance with the amendments to the Electricity Market Law, the enrolment of new participants in the microgeneration net metering system ended on 30 April, with the new net billing system coming into force on 1 May. According to Sadales tīkls, April saw record activity with almost 2150 new microgenerators connected to the Sadales tīkls infrastructure, with the number of applications increasing at an accelerating pace in the last week of April, with more than 1000 new applications received;
• The installed capacity of solar power plants continued to grow in May, and so did the electricity produced by solar power plants, reaching a new record in May - 61 729 MWh, which is 132% more than in April and accounted for 12,5% of the total electricity produced in Latvia;
• With the end of the floods, the biggest decrease in electricity production was observed in hydroelectric power plants, with 381 MWh of electricity produced, which is 43% less than in April and 34% more than a year ago;
• In May, average electricity prices in the Baltic States increased, although electricity prices in Finland and Sweden's 4th zone continued to decrease. In Latvia and Lithuania the price increased to 75,80 EUR/MWh, in Estonia to 75,79 EUR/MWh, while in Finland and Sweden's 4th zone prices decreased to 35,19 EUR/MWh and 43,49 EUR/MWh respectively;
• The price increase was caused by a reduction in generation, as well as constraints in cross-border transmission capacities due to the repairs of Estlink-2, so the price of electricity was driven by more expensive offers from Baltic local generation in certain hours;
• Despite the increase in the average electricity price, electricity prices in the Latvian trading area were below zero for 36 hours due to high renewable energy production at a time when demand was significantly reduced;
• Compared to the previous month, the total monthly imports of electricity to the Baltic States increased by 7%. Electricity imports increased by 25,8% from Poland and by 7,2% from Sweden, while they decreased by 4,4% from Finland;
• In May, a total of 728 118 GOs were issued in the Latvian IA Register, which is 160% more than in April.

Raw data can be downloaded here.

From June 2024 onwards, all calculations and data will be calculated and processed in the Eastern European Time (EET) zone.

Electricity production and consumption balance in Latvia*

* Here and in the following review, the electricity produced is the electricity injected into the grid and the electricity consumed is the electricity received from the grid for consumption.

** Fossil energy source – fossil gas; renewable energy sources – hydro, solar, wind, biogas and biomass.

Balance of the electricity production and consumption in the Baltic States

Interconnection load and electricity prices

Price comparison between neighbouring bidding areas

Load of the Baltic States interconnections

Electricity import to the Baltic States

GUARANTEES OF ORIGIN (GOs)

Statistics of the activity in the Latvia Domain for GOs

BALANCING MARKET IN THE BALTIC STATES

Imbalance prices in the Baltic States

Highest and lowest bid prices

Total activated energy

Average hourly standard bid size

In case of any doubts, questions or inaccuracies, please contact us at [email protected]. 

The information contained in the Market Overview is provided for informational and educational purposes only. Nothing contained in the Market Overview is to be construed or used as a basis for investment or as a basis for any claims against AST. 

Abbreviations and designations used:

LV - Latvia trade area, LT - Lithuania trade area, EE - Estonia trade area, PL - Poland trade area, FI - Finland trade area, SE4 - Sweden's fourth trade area, AT - Austrian trade area, BE - Belgium trade area, DE-LU - German- Luxembourg trade area, FR - France trade area, NL - the Netherlands trade area, DK1 and DK2 - Danish 1. and 2. trade area.

The data sources for the balance of electricity produced and consumed in Lithuania and Estonia are operational data from the ENTSO-E Data Transparency Platform, which is a central collection and publication of electricity generation, transportation and consumption data and information for the pan-European market.

Load = monthly total commercial flow in kWh / monthly total net transfer capacity in kWh ("Net Transfer Capacity" NTC).

The ENTSO-E Transparency Platform is a central collection and publication of electricity generation, transportation and consumption data and information for the pan-European market.

Guarantee of Origin (GO) is an electronic document, that proves the origin of the generated electricity. GOs are uniquely identifiable, transferable, and therefore tradable and used (by cancellation) to provide information of supplied energy to the end-consumer. One GO = 1 MWh generated and injected into the grid that has an expiration of 12 months after the end of the production period.

* Here and in the following review, the electricity produced is the electricity injected into the grid and the electricity consumed is the electricity received from the grid for consumption.

** Fossil energy source – fossil gas; renewable energy sources – hydro, solar, wind, biogas and biomass.

[1] In Latvia there are 10 distribution system operators – for more information visit https://www.sprk.gov.lv/content/pakalpojumu-sniedzeji-1

[2] Electricity imports are not commercial transactions, but electricity that has physically entered the network from other countries.

[3] Electricity exports are not commercial transactions, but electricity physically transferred from the network to other countries.

[4] According to the (ENTSO-E) definition, which does not include electrical self consumption.