Electricity Exchange Price Under 10 Euros for a Fifth of July

Compared to June, the average price in the Estonian bidding area increased by 2.93 per cent, reaching 28.06 euros per megawatt-hour, but in a little over a fifth of July’s hours the price was under 10 euros.

The electricity price in July remained lower than the regulated electricity price in force until the end of 2012. In addition, in one hour on 26 July the hourly electricity price in the NPS Estonian price area fell to an all-time low – 1.03 euros per megawatt-hour.

In July in the NPS Latvian and Lithuanian price areas, the price increased by 3.41 per cent, reaching 44.26 euros per megawatt-hour. In Finland the average price per megawatt-hour was 27.57 euros, an increase of 28.11 per cent over the previous month. Elsewhere in the Nordic countries, monthly average electricity prices fell to all-time lows. The NPS system price decreased by 33.82 per cent in July, with an average price of 9.55 euros per megawatt-hour. This is the lowest price in 15 years.
In July, the average price of the Estonian price area was 16.20 euros lower than in Latvia, but 0.49 euros higher than in Finland.

The day-ahead power flow of transmission capacity between Estonia and Finland flowed from Finland to Estonia for 736 hours and from Estonia to Finland for eight hours. The power flow between Estonia and Latvia was directed towards Latvia for the entire month. 73.1 per cent of the transmission capacity between Finland and Estonia was used, with the full transmission capacity being used for 43 hours. 96.4 per cent of the transmission capacity between Estonia and Latvia was used last month.

Carbon dioxide emission quota prices, which influence the price of electricity production, increased from the middle of July, reaching their highest level in the last few years. The highest emission quota price was 8.05 euros, and the lowest closing price was 7.36 euros per tonne.

According to financial transactions on the Nasdaq OMX Commodities market, the average price for electricity in the NPS Estonian price area for August 2015 is expected to be 28.90 euros per megawatt-hour, and the average price in the fourth quarter may reach 32.40 euros per megawatt-hour.

In June, profits from the transmission capacity of the Estonian-Finnish connections totalled 0.35 million euros for the system operators and 7.83 million euros in the Latvian direction. The auction year and month product price of risk hedging instruments or PTRs-limited sold to market participants was lower than the actual price difference in July between the Estonian and Latvian price areas. As a result, market participants who bought PTRs-limited earned 1.43 million euros in profit in July. In consequence, the profit of Elering’s cross-border capacity distribution in July reached 3.37 million euros.