More energy price spikes expected Wednesday

The big jumps in electricity prices that are currently prevalent show that the energy production sector is not properly organized in Latvia, according to energy expert Juris Ozoliņš in an interview on Latvian Television's "Morning Panorama" program August 17.

On Tuesday August 16, from 17:00 to 18:00, the hourly price of electricity in Latvia reached the ceiling of the "Nord Pool" exchange - 4,000 euros per megawatthour (MWh). And on Wednesday, the same scenario is expected during the same hour, while from 14:00 to 15:00 the price will be 1,500 euros per MWh, according to Nord Pool exchange information.

Ozoliņš, a freelance energy consultant, pointed out that this is an alarming signal. "It shows that we have a catastrophic lack of production capacity, or we have it but, apparently, we lack the resources to use it," he said.

Hourly prices are varying wildly. "This is once again a serious reminder – the energy production sector is not in order, especially in Latvia," emphasized Ozoliņš.

He said that we are dependent on supplies from Scandinavian countries, where prices are also high as a result of factors including extremely high temperatures and very low water levels.

Regarding the big price jumps, Ozoliņš said: "Our regulators who monitor the market will still be able to puzzle over these individual hours. Maybe they will give some explanation. I have no other explanation than confusion and insufficient supply of energy."

At the same time, the expert also expressed his surprise in the interview that energy saving is not taking place more widely in Latvia. "We should start saving energy immediately. Every saved kilowatt, cubic meter of gas is good for the economy and the wallet," said Ozoliņš.

It's the opposite of the situation two years ago when electricity prices briefly turned negative.

It is possible to obtain information about daily and hourly prices on the Nordic Pool electricity market at: https://www.nordpoolgroup.com/en/maps/#/nordic 

 

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