The month of July in Lithuania was both windy and sunny, so a significant portion of the country’s electricity demand was generated from renewable sources. Compared to June, solar and wind electricity increased by 15%. This allowed for a significant reduction in the average price per megawatt-hour.
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However, planned maintenance work on electricity transmission interconnections between Finland and Estonia limited the supply of cheap electricity to Lithuania. To fully meet the country’s consumption needs, electricity was produced using more expensive methods and imported from other, more expensive countries. As a result, Lithuanians paid more than in Finland, Latvia, or Estonia.
“Cheap Finnish electricity largely remains in Estonia due to lower electricity transmission capacities from that country, with some going to Latvia. For us Lithuanians, less of it has been available for several months now. This is also visible on the exchange – although electricity was cheaper in Lithuania than in Poland or Germany, we outpaced our northern neighbors in prices, and in some cases by as much as five times,” says Simonas Jasiulis, head of energy products at the green energy solutions company Enefit.
The electricity price per megawatt-hour in Estonia was 43.93, and in Latvia – 74.72 euros. Meanwhile, in Poland the price was 112.10 Eur/MWh, and in Germany – 105.45. Comparing Lithuanian and Finnish prices – Scandinavians paid almost 5 times less than Lithuanians – only 15.37 Eur/MWh.
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According to S. Jasiulis, electricity prices on the exchange are directly linked to the country’s production capacities. While Finland can secure cheap electricity through nuclear power plants, Poland and Germany, although investing in renewable energy solutions, are still heavily dependent on gas- or coal-fired power plants.
“When talking about prices, we always emphasize that Finland is the regional leader, capable of supplying itself and even exporting. It is no surprise that in July, Finns paid several times less than Lithuanians. The situation in Poland and Germany is different; expensive electricity production methods – gas and coal-fired power plants – still dominate there. This means that producing and consuming electricity in Lithuania is cheaper,” says S. Jasiulis.
According to the expert, in August the electricity price in Lithuania will continue to depend on solar and wind power plants. Considering weather forecasts, the condition of regional infrastructure, and planned maintenance work, the price per megawatt-hour should be around 82-83 euros.
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