Finnish power imports keep Estonia’s July electricity prices low

Cheap electricity from Finland helped keep Estonia’s average electricity price well below those in Latvia and Lithuania in July, ERR reported, citing Enefit senior energy trading analyst Karl Joosep Randveer.

Estonia’s average electricity price was 4.4 cents per kilowatt-hour, about 32 percent lower than in June but roughly 20 percent higher than in July 2025. The average prices in Latvia and Lithuania were 7.5 and 7.6 cents per kilowatt-hour, respectively.

Finland’s average electricity price fell to just 1.5 cents per kilowatt-hour in July. Electricity imports from Finland to the Baltic states reached 531 gigawatt-hours, while restrictions on the Estonia-Latvia electricity link limited the flow of cheaper power southwards. As a result, more of the impact of Finland’s low prices was felt in Estonia, Randveer said.

Estonia produced 322 gigawatt-hours of electricity in July, covering 60 percent of its consumption. Consumption totalled 540 gigawatt-hours, around 7 percent less than a year earlier, while net imports reached 221 gigawatt-hours. Net imports were 13 percent higher than in June but lower than in July 2025.

“Estonia’s significant reliance on electricity imports, a trend that has developed in recent years, is continuing,” Randveer said. He added that cheaper imported electricity reduced the need to use higher-cost controllable domestic generating units.

Electricity prices fluctuated considerably during the month, falling below zero at times and rising to 25.7 cents per kilowatt-hour at others. Prices remained below two cents per kilowatt-hour for about half of July’s hours.

Renewables accounted for most domestic generation

Renewable energy made up a significant share of Estonia’s electricity production in July. Solar power generation was around 145 gigawatt-hours, while wind power production reached about 78 gigawatt-hours, an increase of approximately 30 percent from June.

Solar and wind power together accounted for nearly 70 percent of all electricity produced in Estonia. Oil shale-fired power generation fell to about 11 gigawatt-hours.

Randveer said electricity prices in August would increasingly depend on wind power generation. Based on trends from previous years and seasonal patterns, prices could rise slightly, he said.

Solar power will continue to keep daytime prices low, but its effect will gradually weaken as daylight hours shorten. Prices will therefore depend more on wind generation in Estonia and Finland, the availability of electricity imported through the Estlink connections, and the need to use domestic generating capacity when solar output is low.

Randveer said transmission restrictions between Estonia and Latvia were likely to continue in August, leaving most of the cheaper Finnish electricity on the Estonian market. Estonia’s prices could therefore remain lower than those in Latvia and Lithuania, although daily prices will still depend heavily on weather conditions.