Electricity price high on Sunday evening
On Sunday evening, the price of electricity in the Nord Pool electricity exchange's Estonian price area will exceed €300 and remain high until the end of the day.
On Sunday, electricity prices in Estonia will fluctuate between €20 and €119 per megawatt-hour until 3 p.m. But from 4 p.m. onwards, prices will rise above €200, reaching €325 per megawatt-hour between 5 p.m. and 6 p.m.
The average price on Sunday in Estonia is €128.55 per megawatt-hour. It will be similar in Latvia and Lithuania, but only €25 in Finland.
The average price for the past week in Estonia was €126, making it the most expensive week of the year so far. During the first three weeks of the year, the weekly average price remained below €100 per megawatt-hour.
On Sunday afternoon, Estonia, Latvia, and Lithuania will connect their power grids to the Continental European electricity system. The connection process will begin around 2 p.m.
The head of system operator Elering, Kalle Kilk, said price fluctuations are a normal part of the electricity market.
"The electricity market is functioning. When the wind dies down — there has been relatively strong wind power production in Lithuania today (Saturday – ed.), but tomorrow it will subside — unfortunately, this immediately impacts the price," he said.
Climate ministry denies link to desynchronization
In a statement the Ministry of Climate said it is "easy to assume" synchronization with the Continental European frequency area caused the price increase but "this is not true."
Director of Energy Department Rein Vaks explained how electricity prices are determined:
"The electricity market price in the Baltics is influenced by two main factors: renewable energy production and connections with the Nordic countries. This afternoon, the price is rising due to two reasons:
- Decreasing wind speeds in the afternoon are unfavorable for wind energy production.
- The amount of cheap electricity that can be imported from the Nordic countries is currently lower.
"The Nordic countries and the Baltic region are usually connected by three cables: Estlink 1, Estlink 2, and NordBalt. As is known, Estlink 2 is out of service due to a fault. Additionally, because of the islanded operation test, imports via the Estlink 1 and NordBalt cables are limited. Import levels will return to normal after today, once synchronization is complete."
This article was updated to add a comment from Rein Vaks.
--
Follow ERR News on Facebook and Twitter and never miss an update!
Editor: Marko Tooming, Helen Wright
