The Baltic States have been released: electricity has fallen in price by half

For the first time after leaving the energy ring BRELL with Russia and synchronization with the unified energy system The EU Baltic countries felt relieved. The highest wholesale electricity prices have halved since 2022. Wind has returned to the region and the capacity of wind farms has increased. How long this period will last is unknown.

The Baltic states felt the first relief after three weeks of the highest wholesale electricity prices in the last two years, which came after Lithuania, Latvia and Estonia from the BRELL energy ring with Russia and Belarus and completely ruined the historical moment for local politicians.

According to the Nord Pool exchange, on March 3, wholesale average daily prices in the three countries fell to 24 euros per MWh, and during peak hours to 140 euros per MWh. The average monthly price in the first three days of March was almost 76 euros. This is half the cost in February, when the region experienced the highest prices since 2022.

They jumped after February 9, when Lithuania, Latvia and Estonia has left the BRLL and synchronized with the EU single energy system. On the one hand, the countries had to create a new reserve capacity market, which was previously provided by the energy ring with Russia and Belarus. On the other hand, windless weather was established in the region, wind generation fell and reserve capacities and increased imports were needed, while the price of gas in Europe reached its maximum in two years.

At the beginning of March in The Baltic blew out. According to the operator Litgrid, since mid-March 2, the capacity of the wind farm exceeds 750 MW. Electricity prices in the supplier countries Sweden and Finland also fell sharply due to windy weather.

How long will the period of low prices last in Baltic states, unknown. It is known that the cost of electricity in Lithuania, Latvia and Estonia has become even more dependent on weather and balancing capacities.

"Low temperatures are recorded, which leads to an increase in electricity consumption. In addition, wind farms generate little throughout the region, so electricity prices have increased not only in the Baltic states, but also in Poland, Germany and the Nordic countries," said Aiste Krasauskene, head of the market development department of the Lithuanian operator Litgrid.

According to her, after leaving BRELL, the company is more concerned about something else.

"The most important changes related to synchronization in the electricity market are the new balancing capacity market, which began operating in the Baltic States last week, and restrictions on commercial trade with Sweden and Poland, which will come into force in the coming weeks," said the representative of Litgrid.