Electricity exchange prices fall in November

According to data provided by the Nord Pool Spot (NPS) Nordic electricity exchange, electricity exchange prices fell in the Baltic, Finnish, and Danish price areas in November.

The average price in the Estonian price area fell by 5.98 percent to 32.88 euros per megawatt-hour. In Finland, the price fell by 5.23 percent from October, giving an average price of 31.74 euros per megawatt-hour during the month.

In the Latvian and Lithuanian price areas, prices fell by almost 19 percent, or over 10 euros, compared with October, and the average prices for the month were 45.76 and 45.84 euros per megawatt-hour respectively. Therefore, the price in Latvia and Lithuania was almost 13 euros higher than in Estonia.

Based on day-ahead transactions, the power transfer between Estonia and Finland flowed from Finland to Estonia for 704 hours, and went in the reverse direction for 16 hours. 55 percent of the capacity was taken advantage of for market trading in the Finland-Estonia flow, of which the full transmission capacity was used for 65 hours.

In November, the power flow between Estonia and Latvia flowed in the direction of Latvia for 713 hours, and for seven hours in reverse. 96 percent of the Estonian-Latvian combined market’s transmission capacity was provided for market trading, and the connection’s capacity was used to its full extent for 607 hours.

Carbon dioxide emission quota prices, which impact on the price of electricity production, continued to increase in November. The month’s average price was 8.52 euros per ton, with the lowest closing price being 8.31 euros and the highest 8.67 euros per ton.

On the basis of transactions processed on the last trading day in November on the Nasdaq OMX Commodities market, the expected average electricity price in December is expected to reach 31.50 euros per megawatt-hour, and the first quarter of 2016 will see prices of 30.80 euros per megawatt-hour.

Revenues from the transmission capacity of the Estonia-Finland connections in November totalled 443 648 euros, and on the Estonia-Latvia connections, these totalled 5.7 million euros. The yearly, quarter and month product auction prices for risk hedging instruments or PTRs-limited sold to market participants were much lower than the actual price difference between the Estonian and Latvian price areas. As a result, market participants who bought PTRs-limited earned over 2 million euros in total in November. Elering’s profit for cross-border capacity distribution for the previous month was 2.1 million euros in total.