In August, electricity prices in Lithuania, as in previous summer months, were mainly influenced by the weather and its impact on the production of renewable energy sources. The price was also affected by cross-border electricity transmission connections.
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Although there was no shortage of precipitation last month in Lithuania, wind and solar power plants produced less electricity than in July. The amount of electricity produced from renewable sources decreased by 7% compared to July. Lower local generation also meant a greater need to import electricity or produce it from more expensive sources.
The reduction in cheaper electricity supply was also contributed to by planned maintenance work on cross-border electricity transmission connections. These limited the entry of cheaper Finnish electricity into the Baltic countries, so Lithuania received a smaller share of the cheap electricity produced in the region.
“This August, the electricity price was formed practically at the same level as at the same time last year. Decreased production from renewable sources, less cheap electricity from Finland, and the result – a slightly more expensive price on the exchange.
Despite this, we also had intervals of cheaper electricity prices on the exchange. In conversations with clients, we constantly advise that if you have an electricity plan linked to the exchange – adjusting the usage time of electrical appliances can help save a significant amount. And this will be especially relevant as autumn begins and winter approaches,” says Simonas Jasiulis, head of energy products at the green energy solutions company “Enefit”.
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However, according to the expert, a bigger price jump may be recorded already in September. As autumn begins, the generation of solar and wind power plants is expected to decrease, and electricity production from fossil fuel power plants will become more expensive due to rising raw material prices. Meanwhile, infrastructure maintenance work will continue to limit the entry of cheaper electricity into Lithuania.
“Looking ahead to autumn – the outlook is bleak. If the forecasts come true, September will be the most expensive month in several recent years. There are several reasons: ongoing infrastructure maintenance work limiting the entry of cheap electricity into Lithuania, decreasing generation from renewable sources, and more expensive electricity produced from fossil fuels,” says S. Jasiulis.
The shortage of cheaper electricity in Lithuania is also visible when comparing prices in the region. In August, Finns paid only 41.30 euros per megawatt-hour – almost half as much as Lithuanians. In Estonia, the price was 59 euros, while in Latvia it was practically the same as in Lithuania – respectively 79.94 and 80 euros per megawatt-hour. Meanwhile, in Poland and Germany, electricity was even more expensive – respectively 134.40 and 126.89 euros per megawatt-hour.
According to S. Jasiulis, in September the electricity price in Lithuania may reach about 122 euros per megawatt-hour. This would mean that after a fairly calm summer period, the beginning of autumn in the electricity market could be significantly more expensive for Lithuania.
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