Energy, Estonia, EU – Baltic States

"If we look at the current day at the common Baltic energy market, we have to admit that in Latvia and Lithuania, there seems to be a lack of will to develop the transparent electricity market organized by the NPS electricity bourse. Unfortunately the energy bourse seems to be regressing in Latvia, Lithuania," Veskimägi wrote in his blog.

Veskimägi estimated that thus, all the involved parties together should consider in the future, if the current market situation continues, whether the Estonian electricity market can be automatically integrated with the Latvian and Lithuanian electricity markets or not.

"In essence, Latvian and Lithuanian market participants have stopped trading at the NPS electricity bourse which is why the price that has developed cannot be considered trustworthy," he explained.

Veskimägi said that it is completely incomprehensible that while in most hours, the price in Latvia-Lithuania is 100-200 EUR/h, electricity producers there wish to sell just around 2,900 MWh of electricity a day, which means 120 MW/h combined for Latvia and Lithuania. Thus the majority of electricity trade takes place outside electricity bourse in Latvia and Lithuania.

"In such a situation it increasingly seems that Nord Pool Spot rushed too much when it made the decision to expand to Latvia and Lithuania without the necessary preliminary conditions being fulfilled in these states," wrote Veskimägi.