Exchange price of electricity declines in September

The price of electricity in the bidding areas of the Nordic power exchange declined in September. In a comparison of the Baltic states and Finland, the price was highest in the Latvian bidding area and lowest in Finland.

The price of electricity on the Finnish power market fell by 0.05 per cent in August – to 48.75 euros per megawatt-hour. The decline was most noteworthy in Latvia, where the price of electricity on the exchange fell 1.29 per cent, costing 48.85 euros per megawatt-hour. In the Lithuanian bidding area, the exchange price of electricity dropped by 1.16 per cent – to 48.79 euros. In the Estonian bidding area, the decrease was 0.62 per cent – 48.77 euros.

In the Estonia and Finnish bidding areas, there was a price difference in the case of only 13 hours last month; and between Estonia and Latvia, in the case of 46 hours.

The drop in the system price in the Estonian bidding area was 8.8 per cent on a monthly basis – 32.92 euros per megawatt-hour.

Flows of electricity between Estonia and Finland in September were mainly oriented toward Estonia. Energy flowed toward Estonia in 645 hours – 89.6 per cent of the time – and 35 per cent of the capacity supplied to the market was used. Energy flowed from Estonia to Finland in 57 hours – 7.9 per cent of the time – and 0.8 per cent of the capacity supplied to the market was used. No trade between the countries took place in the case of 18 hours.

Between Estonia and Latvia, energy flowed toward Latvia in 409 hours – 56.8 per cent of the time – and 23.5 per cent of the capacity supplied to the market was used. Energy flowed toward Estonia in 280 hours – 38.9 per cent of the time – and 15.7 per cent of the capacity supplied to the market was used. There was no trading in 31 of the hours.

Elering earned 469,121 euros in revenue from allocation of cross-border transmission capacity in September.

The price of carbon allowances, which affect the electricity price, declined in September and transaction prices ranged from 24.72 to 27.04 euros per tonne.

Based on electricity futures prices on the month’s final day of trading on the NASDAQ OMX exchange in September, the average electricity exchange price in October could be 41.28 euros per megawatt-hour in Estonia, 46.20 euros per megawatt-hour in Finland and 48.10 euros per megawatt-hour in Latvia.