January market overview
📈 In January, electricity prices rose sharply across the Baltic states compared to December, by 82% in Lithuania, 83% in Latvia and as much as 110% in Estonia, reaching roughly €152–154/MWh. The Nord Pool system price also surged (+95%) to about €103/MWh.
❄️ The increase was mainly driven by record-high electricity consumption due to cold weather, lower renewable generation and limited access to cheaper imports from the Nordics. Electricity consumption in the Baltics grew by 23% month-on-month to 3,109 GWh, while production increased by 36%. The production-to-consumption ratio stood at around 70% (Latvia 99%, Lithuania 68%, Estonia 51%).
🌬️ Wind power generation declined and inflows into the Daugava River dropped below the long-term average, reducing hydropower output and increasing the role of thermal generation in meeting demand.
📊 Electricity imports to the Baltic region decreased for the first time in seven months (-7%), largely due to high prices in Finland, although flows from Sweden and Poland increased. Estonia and Lithuania also recorded new electricity consumption records during the month.
🛢️ Gas prices rose sharply due to strong demand and LNG supply risks, oil prices increased amid geopolitical tensions and CO₂ allowance prices climbed by around 6%. EU gas storage levels fell to about 41% by the end of the month.