In March, the Latvian electricity market experienced a significant decline in prices, mainly driven by seasonal weather conditions. What were the key factors influencing electricity prices in Latvia?

The average market price in Latvia reached 74,95 EUR/MWh, representing a 52% decrease compared to February. The main driver behind this price drop was the high output from the Daugava hydroelectric power plants, which, thanks to spring floods, covered 78% of Latvia’s total electricity consumption.

Solar parks also made a notable contribution to overall electricity generation. For the first time this year, solar power plants had a significant impact on average daytime prices, resulting in several hours with negative or near-zero electricity prices.

With the arrival of even warmer and sunnier weather conditions, a further decrease in prices is expected in April. The average electricity market price for April is forecast at around 50 EUR/MWh.