In April, Latvia's hydroelectric power production slumped, causing electricity prices to rise across the Baltics

Information compiled by energy company Enefit for April shows that the wholesale price of electricity in the Baltic region was approximately 16% lower than in March, at EUR 77/MWh. However, Latvia stood out as the most expensive of the Baltic countries, with prices on average almost €4/MWh higher than in Estonia and €3/MWh higher than in Lithuania. The price difference was determined by limited cheap cross-border electricity flows and very low hydro power generation in Latvia.

"In April this year, we saw the lowest amount of hydroelectric power generated in Latvia in five years. Hydroelectric power production in April has traditionally exceeded Latvia's total electricity consumption: in April 2023, it covered 178% of demand, but in April 2024, it covered 128%. This year, however, hydropower accounted for only 43% of the country's total demand and 11% of the Baltic region's demand," explains Raimonds Vērdiņš, Head of Enefit's Legal Client Segment.

At the same time, other renewable energy sources played a significant role in April. In the Baltics, wind and solar energy accounted for 39% of total consumption, fossil fuel power plants for 22%, and hydropower, including Lithuania's hydropower, for 14%. The dominant cheap solar energy reduced electricity prices during the day to as much as 71% below the monthly average price level, However, as the sun set, other sources of production were activated throughout the Baltics, mainly fossil fuel power stations, which are significantly more expensive than solar energy. As a result, morning peak prices were almost twice as high as the average, while evening peaks reached up to three times the monthly average.