Comparing with November the average price of electricity in Estonia increased in December by 2.1% to 84.3 euros per megawatt-hour (8.4 cents per kilowatt-hour). Compared with December of last year (89,0 euros per megawatt-hour) the price for electricity in 2024 was 5.3% and almost five euros fewer. The biggest influence on the reduction of prices was more cheap electricity supplied to us from Northern Europe, and record high production of wind energy.In December the highest prices for electricity were observed at two times: in the morning, from 07:00 to 09:00, and in the second half of the day, from 15:00 to 17:00. In the morning timespan of the prices were 52.4% higher, than the average in December 2024 year, and were 128.5 euros per megawatt-hour (12.8 cents per kilowatt-hour). From 15:00 to 17:00 prices were at average 121.0 euros per megawatt-hour (12.1 cents per kilowatt-hour), which was 43.5% above the monthly average. The most favorable prices in December were from 23:00 to 04:00, when the price was held at an average level of 40.0 euros per megawatt-hour (4,0 cents per kilowatt-hour), which was 52.5% lower, than the average
per month. Based on January 2024 year, similar price dynamics can be expected in the current month. In January of last year, as and in the previous month (December 2024 year.), in the interval from 07:00 to 09:00 was 28.2% higher, while in the period from 15:00 to 18:00 approximately 44.0% higher. The lowest prices in January of the last year were also from 23:00:00 to 04:00:00, when they were 44.4% lower, than the average for the month.
472 gigawatt-hours of electricity. The deficit was covered through imports. In December 2024 year Estonia produced the record quantity of wind energy – 201 gigawatt-hours. This is approximately 2.2 times more than than in December 2023 year. Compared with November 2024 year wind power production increased by approximately 18%. Today’s wind power generation in Estonia has been setting new records for the third third month in a row. Significant amounts of electricity in December were also produced from shale (151 gigawatt-hours), biomass (56 gigawatt-hours) and semi-coke gas (44 gigawatt-hours). The remaining electricity was produced in a smaller volume from other sources. Because of good wind conditions wind power in December 2024 year covered 28.4% of demand for electricity (in 2023 year – 7.5%), slate – 21,2% (in 2023
year – 33%), semi-coke gas- 6.2% (in 2023 year – 4.6%), biomass – 7,8% (in 2023 year – 6.8%), and through imports were covered 33.6% (in 2023 year – 46.1%). On the rest.of energy sources was significant share. S From 2023 year in Estonia the number of “zero prices” – prices equal to zero or less than zero. In the period from 2020 to 2022 year in Estonia to t. n.
zero prices came from 3 to 7 hours per year. In 2023 year hourly pricing of electricity at the exchange was equal to zero or was less zero 167 times, and in 2024 year – even 236 times. “Zero price” was conditioned primarily by the large volume of renewable energy production, primarily solar energy. In the Baltic Costs for electricity in the Baltic countries remained at approximately the same level as in Estonia: in Latvia in December 2024 the
average price for
electricity was 90.5 euros per megawatt-hour, which is 6.2 euros more than in Estonia. In Lithuania the average price was 89.7 euros per megawatt-hour, which is 5.4 euros more expensive than in Estonia. The main reason for the difference in prices was the maintenance of the cable between Estonia and Latvia, which reduced its capacity by approximately 2/3. In 2024 year in all countries of the Baltic countries were produced in total 4.7 TW⋅h wind energy and 2.8 TW⋅h solar energy.
Most of these volumes – 70% of wind energy and approximately 50% of solar energy – come from Lithuania. In Estonia has produced 25% of wind energy and 36% of solar energy, and in Latvia, respectively – 5% and 14%. In Europe The average price of natural gas necessary for heat power plants was in December on the Dutch exchange TTF
44.5 euros
per megawatt-hour. Over the month prices significantlyfluctuated: the decrease at the beginning of the month was caused by a better than usual warmth, weather and the resulting reduction of demand for heating, and also more production of renewable and nuclear energy. Because of the influence of these factors in the mid month the price was held at 42 euros/MW⋅h. Since then the weather became increasingly colder, the demand increased, which, in turn, led to an increase in price from the mid month. In addition, the price was affected by and problems related to supply: Norway sent more gas to the UK, which reduced the supply of gas to Europe. In addition, this same period at one of the biggest LNG stations in Norway (station Hammerfest LNG) had a temporary breakdown, that threatened more decreased supply and spurred an increase in prices. One of the factors for the price increase was also the confirmation by Russia of the cancellation of gas transit through Ukraine, which, in turn, reduced the supply of gas in Europe. By the end of the year, prices were held at 50
euros/MW⋅h. Average price of quotas for CO2 emissions in December was 68.8 euros per ton. The price of quotas from the beginning of 2024 year has gradually increased due to increased demand, the recovery
of the economy and the reduction of quotas. Karl
Josep Randwehr, analyst of electricity trading at Eesti Energia The market review was compiled according to the most current available at this moment at Eesti Energia data.
