Maintenance outages deepen Estonia’s electricity shortfall

Maintenance at power plants, low wind generation and expensive gas-fired electricity have pushed prices higher in Estonia, ERR reported. The Nord Pool price in Estonia has risen for three consecutive weeks and is set to reach 214 euros per megawatt-hour tomorrow. Prices are expected to exceed 300 euros in Lithuania and 260 euros in Latvia.

Electricity is more expensive in most of Europe, while Finland and Sweden have lower prices, largely because they produce enough renewable energy. Elsewhere, costly gas-fired generation is pushing prices up, said Marko Allikson, a board member of Baltic Energy Partners. He said gas prices are nearly three times higher than at the same time last year, while low wind output and strong connections to other markets mean high prices in Central Europe affect the Baltics too.

Plant maintenance is also limiting electricity supply across the region. Estonia’s Auvere power plant is coming out of maintenance, while Latvia and Lithuania each have gas plants with capacity equivalent to two Auvere plants offline. In Sweden, nuclear plants with capacity equivalent to 11 Auvere plants are undergoing maintenance, said Tiit Hõbejõgi, a board member of Eesti Energia. He said prices could fall from their current peaks if the maintenance work ends in November and the capacity returns to the market.

Estonia’s average electricity price in the first quarter of this year was about 120 euros per megawatt-hour. Futures trading indicates that next year’s opening quarter could average around 20 euros per megawatt-hour more, Allikson said, though the actual price will depend heavily on the weather.

Prices are expected to become more stable when new wind power capacity comes online. Several wind farm projects are under development in Estonia, but some have been delayed by slow state procedures and legal disputes with local residents. Evecon board chair Karl-Joonatan Kvell said the company hopes to have several projects or plans approved in the next six months, allowing it to seek construction permits. The aim is to have as much as possible completed by 2030.