Latvia’s electricity generation to fall by 14.5% in 2022

According to the electricity market outlook prepared by AS Augstsprieguma tīkls (AST), Latvia produced a total of 4,796 GWh of electricity last year. This is 14.5% less than in 2021.

The Daugava Hydroelectric Power Station (HES) produced 2,653 GWh of electricity. This is an increase of 1.3% compared to the previous year. Small hydropower plants have increased production by 13.3%, successfully producing 77,678 MWh of electricity.

Latvian thermal power plants produced 1,216 GWh of electricity, a 36.9% decrease compared to 2021.

As for biomass power plants, they produced 344,055 MWh of electricity in 2022, a decrease of 5.9% compared to the previous year. CHP plants produced 73,260 MWh of electricity (down 67.5%). Biogas power plants produced 237,283 MWh of electricity (down 9.4%).

Last year the wind turbine park produced 188,364 MWh of electricity. This is a 34.5% increase compared to 2021. In total he produced 5,262 MWh of electricity (2.2 times more than before).

Latvia’s electricity consumption will reach 7,106 GWh in 2022,

This is 3.7% less than in 2021.

In December 2022, Latvia produced 637,545 MWh of electricity. This is a 29% increase compared to the same month in 2021. Electricity consumption last month reached 661,048 MWh, an increase of 11% compared to December 2021.

Electricity market outlook shows increased electricity imports in 2022 as consumption and production decreased. Latvia imported her 2,311 GWh of electricity from neighboring countries, which is her 30.4% increase compared to 2021. She covered 67.5% of Latvia’s consumer demand, down 8.52 percentage points when compared to the previous year.

It also noted an increase in power generation in the renewable energy sector and a decrease in power generation in the fossil fuel sector. The change in the power generation structure is due to soaring gas prices. This is why large CHP plants work with minimal capacity. It was also difficult to connect new wind and solar farms to the power grid.

Electricity prices have increased significantly in Latvia and Europe in the last year. Each summer month reached a new peak. After the record in August, the average electricity price reached 467.75 EUR/MWh, and his peak electricity price of 4,000 EUR/MWh recorded on the evening of August 17, finally started to come down.

The average electricity price in Latvia reached 226.91 EUR/MWh in 2022. Compared to the previous year, it is an increase of 2.6 times.

The sharp rise in prices was driven by multiple factors, mainly the reaction to the Russo-Ukrainian war. Concerns about resource sufficiency for the upcoming winter season also contributed to the surge in gas prices in Europe over the summer.

Prices were also affected by the decisions of the Baltics and Finland to deny power imports from Russia and Belarus. Extreme heat in Europe, which caused flooding in the reservoirs of Scandinavian hydroelectric power plants, and high power consumption for cooling purposes were also factors influencing prices.

Electricity imports from Russia and Belarus will drop by 77% compared to 2021, reaching just 1,095 GWh in 2022.

Imports from third countries to the Baltic countries were replaced by European electricity, whose share increased by 20% to reach 12,716 GWh. This includes imports of 6,823 GWh (+6%) from Finland, 4,947 GWh (+43%) from Sweden and 946 GWh (+39%) from Poland.

Also read: 60% of respondents reduced their electricity consumption in Latvia Latvia’s electricity generation to fall by 14.5% in 2022

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