In January, the average electricity price in Latvia was 153.43 EUR/MWh, which is 83% higher than in December. The lowest price was recorded on January 2 at 52.19 EUR/MWh, while the peak reached 241.51 EUR/MWh on January 26.
As of February this year, Ignitis has expanded its electricity trade to Latvian households, offering personalized tariffs that combine the stability of fixed prices with the advantages of exchange-based pricing.
Electricity Generation and Consumption in Latvia
According to data from Augstsprieguma tīkls (AST), Latvia generated 771 GWh of electricity in January—a 45% increase compared to December. This marks the highest generation volume since the spring of 2024. Simultaneously, consumption rose significantly by 15%, reaching 780 GWh. This is the highest single-month consumption recorded in the last 16 years!
The primary driver for this surge was a sharp drop in air temperature across Latvia and neighboring countries, leading to increased electricity use for heating. Data from the LVĢMC shows that the average temperature in January was −8.7 °C, which is 5.7 °C below the long-term norm. A colder January was last experienced in 2010, and prior to that, only in 1987. The peak hourly consumption - 1,415 MWh - was recorded on January 21 between 10:00 and 11:00 AM.
Due to the rising demand, production at thermal power plants increased substantially. Generation from natural gas plants was nearly four times higher than in December. Output at biomass plants grew by 17%, biogas plants by 6%, and solar power plants also saw a 10% increase.
Conversely, the renewable energy segment saw a decline in hydro and wind output: hydroelectric power generation decreased by 49%, while wind energy dropped by 17%.
Future Price Forecast
Wholesale electricity futures suggest that the average price in February could see a slight increase compared to January. In mid-February, the electricity price in Latvia is currently averaging 186 EUR/MWh; however, the month is only halfway through, and winter shows no signs of retreating just yet.
Although the water reservoir levels at Nordic hydroelectric plants remain lower than usual, this factor is not significant enough to drive prices substantially higher. The impact is being cushioned by stable fuel prices, sufficient wind energy production, and full cross-border interconnectivity capacity.
