Electricity Production and Consumption Continued to Decline in March

Electricity consumption fell by 11% year-on-year in March to 725 gigawatt-hours, while production declined by 21% to 862 gigawatt-hours.

The main reason for the drop in consumption is thought to be the warmer air temperatures. According to the weather service, the average air temperature in March was 8.4 degrees warmer than the same time last year.

Electricity output fell on the back of decreased consumption, as well as shrinking exports. Despite the drop in volumes, Estonia still remained an exporting electrical system in March. Production exceeded domestic consumption by 19%, leading to a surplus of electricity balance and net exports of 137 gigawatt-hours.

Among a general fall in production, the generation of renewable energy increased. A total of 126 gigawatt-hours of renewable energy was produced in March, causing an increase of 26% year-on-year. Out of this, wind energy output rose by 46%, accounting for 52% of all renewable energy.

In Latvia, electricity production fell by two percent compared to last year, coming to 505 gigawatt-hours. The greater water flow rates on the Daugava river as of mid-March significantly increased the production capacity of its hydro power plant cascade – overall for the month, 81% more hydro energy was produced than in March of last year. However, production at Riga’s combined heat and power plants fell by 75% compared to a year ago. The shortfall in Latvia’s electrical balance for March was 124 gigawatt-hours, which is 36% less than the same time last year.

In Lithuania, electricity production fell by 32% year-on-year, to 228 gigawatt-hours. The share of domestic production in Lithuania’s electricity consumption was 27%, and the electrical system recorded a shortfall of 613 gigawatt-hours. In order to satisfy domestic demand, an estimated 40% of the deficit had to be covered with imports from third countries.

The combined shortfall in the electrical balance of the Baltic states increased by 27% year-on-year, to 601 gigawatt-hours. March’s deficit was 27% of the total consumption in the Baltics.

An average of 90% of the electricity consumed in Estonia was purchased in the Elspot market, and 90% of the electricity produced was similarly sold in the Elspot market. In Latvia, the corresponding figures were 28% and 10%, while in Lithuania they were nearly 100% and 96%. A month earlier, 85% of electricity consumption and 41% of electricity production went through the exchange. This sudden growth is down to the fact that Lithuania’s major producer, Lietuvos Energija, began to sell the majority of its output to the electricity exchange at the start of March.

The combined electricity consumption of the Nordics was nine percent lower than March last year. Consumption volumes fell in all Nordic countries without exception. The combined electricity output of the Nordics exceeded consumption by five percent, producing a surplus of 1.7 terawatt-hours in March’s electrical balance.