In June 2025, the average electricity price reached 43.01 EUR/MWh, which is 36.65% lower than in May. In Latvia, this is the lowest electricity price since November 2020.

Electricity imports in the Baltics

Thanks to the restoration of the EstLink 2 connection by Finland’s transmission system operator as of June 19, 2025, electricity imports from Finland increased. At the same time, total electricity imports to the Baltic states significantly decreased in June. Compared to May, imports from EU countries were 14% lower, and compared to June 2024, 43.6% lower. The largest reductions were recorded in imports from Poland (by 40.9%) and Sweden (by 29.6%). Meanwhile, imports from Finland increased by 13%.

There was also a significant increase in the number of hours with negative electricity prices in the Baltic states. In Latvia, compared to the previous month, the number of negative-price hours rose by 174%, in Lithuania by 133%, and in Estonia by 196%. Compared to June 2024, the number of such hours in Latvia and Lithuania was 294% higher, and in Estonia – 325% more.

Forecasts for July and the coming months

Forecasts from electricity wholesale futures contracts indicate that the average electricity price in July may decrease further compared to June. After the first week of July, the average electricity price on the Nord Pool exchange stands at around 46 EUR/MWh, but the month has only just begun.

Electricity prices are influenced by weather conditions – stronger than usual winds may create a similar situation to June, when wind power generation in the Baltics reached its peak. Solar power generation is expected to decrease slightly due to rainy and cloudy weather in recent weeks. Unseasonably low air temperatures are another factor that may reduce electricity prices in the coming weeks, as there will be less need to use air conditioning, which typically increases energy consumption during the summer.

The price reduction is also supported by the operation of the EstLink 2 direct current transmission connection between Finland and Estonia. Thanks to this connection, the Baltic countries receive cheaper electricity.