In February, the Latvian electricity market experienced a price increase, mainly driven by cold weather conditions in the Baltic region and limited wind generation in the middle of the month. What were the key factors influencing electricity and natural gas prices?

The average electricity exchange price in February reached 155,43 EUR/MWh, which is 1% higher than in January. This marks the highest February electricity price in Latvia’s history. Significant price fluctuations were also recorded during the month: the maximum daily price reached 389,01 EUR/MWh (February 3), while the lowest dropped to 51,74 EUR/MWh (February 21).

Thanks to high water levels in the Daugava River and stable operation of combined heat and power plants (CHPs), Latvia was able to cover a large share of its consumption with local generation. In February, Latvian electricity generation facilities supplied 99% of the country’s required electricity, reducing dependence on imports compared to January.

February was notable for the impact of the “polar vortex,” which brought cold waves to Northern Europe and the Baltics, increasing heating demand. Synchronization with European grids, fully completed in February 2025, ensured stable frequency even under high load conditions.

A price decrease is expected in March/April, as the share of solar energy in the grid increases and the need for intensive heating declines due to warmer weather. The average exchange price is expected to be in the range of 80 – 90 EUR/MWh.