Baltic electricity prices on the Nord Pool exchange are being driven up on Tuesday by low renewable energy generation, the malfunction of the EstLink 2 submarine power cable between Finland and Estonia, higher consumption, and rising natural gas prices, according to regulators.
“At the moment, we have what is known in Europe as ‘dunkelflaute’, a unique situation where neither wind nor solar are generating electricity. We have an absolute calm today in Lithuania, and the sun isn’t shining in our region either. Renewable generation is producing very little electricity,” Renatas Pocius, chairman of the National Energy Regulatory Council (VERT) told LRT RADIO.
“We’re having problems with connections. One of the links, between Estonia and Finland, is down, and we can’t import cheaper electricity from Scandinavia,” he added.
Pocius explained that electricity prices are also being driven up by increased consumption due to the cold weather and by higher natural gas prices.
According to the VERT chairman, prices are expected to stay between 90 and 130 euros per megawatt-hour (MWh) in the near future, with consumers who have pricing plans tied to the exchange to be most affected by these fluctuations.
He emphasised that Sunday’s synchronisation of the Baltic electricity grids with the Continental European system has no impact on electricity prices or it accounts for just, on average, 1 percent.
On Tuesday, prices in Nord Pool’s Lithuanian bidding area range from 240 to 290 euros between 08:00 11:00 and from 200 to 340 euros between 15:00 and 21:00 the highest daily average price so far this year.
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