The average price of electricity in February 2025 increased by 65% against January’s rate to EUR 151.8 per MWh, representatives of the Enefit company have told the LETA news agency.
The company notes that February showed how renewable energy sources and limited import capacities can boost prices. The average cost was twice as high as it had been in February 2024.
Enefit attributes this to a number of factors, among which renewable energy output is most important. In late February, wind energy production in Latvia was down by 63% compared to January, as against 57% at the Baltic level. Output at Latvia’s hydroelectric power plants also declined steadily throughout the month, with a particularly precipitous drop during the second half of the month. Hydropower output in February was 33% lower than in January.
The use of natural gas to generate electricity accordingly doubled to satisfy consumption needs in February.
Raimonds Verdins is director of Enefit’s business customer segment, and he points out that the price of natural gas was also at its highest level for nearly two years in February, amounting to EUR 58 per MWh, though during the latter half of the month the sum dropped to EUR 41/MWh, while at the very end of February it edged up again to EUR 46 per MWh. These fluctuations were caused by rapidly declining natural gas stocks, supply disruptions and the present geopolitical situation in the world.
Renewable energy output is expected to recover in March and thus play a bigger role in electricity generation, Verdins says. This, he adds, will help to push prices downward.
Source: BNS
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