Estonian Power System Runs Deficit in March Due to Cheap Electricity Exchange Price

In March, Estonia’s power system ran a deficit due to the good usability of hydro resources in the region, resulting in the lowest electricity prices in Estonia since the launch of the power exchange in 2010. The last time consumption exceeded production in monthly calculations was in December 2009.

In March, domestic power consumption increased by three per cent year-on-year, to a total of 745 gigawatt-hours. The 14 per cent drop in production to 744 gigawatt-hours was caused by a decrease in exports and increase in imports due to sufficient hydro resources in the Nordic countries as well as in Latvia. This February, power consumption in Estonia reached 719 gigawatt-hours and production reached 947 gigawatt-hours.

In March, production from renewable resources increased by 16 per cent year-on-year, totalling 148 gigawatt-hours. Of that, 51 per cent of production came from wind energy, 46 per cent from bioenergy and three per cent from hydro-energy. In a yearly comparison, hydro-energy production increased by 21 per cent, bioenergy by 17 per cent and wind energy by 15 per cent. Renewable energy produced in March covered 18.2 per cent of domestic consumption.

The increase in production from wind power plants was due to favourable wind conditions. For example, according to the Estonian Weather Service, average daily wind speeds at the Virtsu and Pakri measuring stations were 17 per cent higher than at the same time last year.

This March in Latvia, electricity production reached 608 gigawatt-hours, a fifth more compared to the same time last year. Production increased due to expanded hydro resources. Domestic consumption remained at the same level as last year. Latvian producers covered as much as 96 per cent of domestic consumption, and the electricity balance ran a deficit of 22 gigawatt-hours last month, compared to a deficit of 138 gigawatt-hours in March last year.

In Lithuania, electricity production increased by seven per cent in a year-on-year comparison to 243 gigawatt-hours. Total electricity consumption increased by three per cent. Domestic production covered only 28 per cent of consumption, with 65 per cent of the electricity energy deficit being covered by imports from Latvia and the remaining 35 per cent imported from third countries.

Total electricity production in the Baltic countries remained at the same level compared to last March, totalling 1,595 gigawatt-hours. Consumption in the three countries increased this March in an annual calculation by two per cent, reaching 2,242 gigawatt-hours. The gross deficit of the electricity balance in the Baltic countries totalled 647 gigawatt-hours, increasing by six per cent year-on-year.

In March, electricity consumption in the Nordic countries increased by two per cent from the same time last year. Consumption increased in Norway and Sweden, but remained at the same level in Finland and Denmark. Electricity production in the Nordic countries stayed at the same level as last March.

The consumption and production balance of the Nordic countries stayed on the plus side by one terawatt-hour in the monthly calculations. Sweden and Norway had exporting systems, while Finland and Denmark’s systems were net importers.

A full overview of the electricity system for March is available here (in Estonian).