In late 2013 Estlink-2 electricity link was launched and low water level in Daugava River forced to abandon expensive local energy production and import cheaper electricity from Scandinavia.
"Low tide in April led to 2.6 times lower waters in Daugava River which had a negative effect on local electricity production volumes – 45% less electricity was produced. Latvia was also forced to purchase 5% of all consumed electricity from neighbouring countries. Although due to high tides in April hydroelectric power station produces electricity not only to satisfy the domestic demand but energy is also exported. However, the situation was alleviated by higher import from the second Estlink connection which prevented the lack of electricity from emerging," commented Director General of Elektrum Lietuva, Gatis Junghans.
Due to insufficient transmittance capacity, electricity price in Lithuania and Latvia in Nord Pool Spot energy market was the highest and amounted to EUR 44.1 per MWh. Whereas in South Norway it was the lowest, EUR 23 per MWh.
It is forecasted that Lithuanian and Latvian market prices will near Scandinavian and Estonian ones in 2016, when 700 MW capacity NordBalt link will be launched between Lithuania and Estonia.
