Continued Estlink-2 outage one factor in high summer electricity prices

Jennifer Hudson
June 14, 2024

Here are 12 photography portfolio templates you can use with Webflow to create your own personal platform for showing off your work.

The current, high electricity prices are likely to continue through summer to autumn, thanks to the ongoing Estlink-2 submarine cable outage.

A fall in electricity prices in the Baltics may be observed primarily during the daytime and sunnier hours – at least during the longer summer days.

Kalvi Nõu, head of energy trading at energy firm Alexela, said: "The higher-than-expected electricity prices are mainly the result of the lack of an electricity connection between Estonia and Finland, ie. the Estlink 2 subsea cable."

Estlink 2 is out of service until September, meaning the fluctuating electricity prices will persist until the fall.

Nõu said current electricity prices are also influenced by other ongoing maintenance works in the region.

"Daytime peak electricity consumption prices are being significantly affected by various ongoing maintenance works. For example, the transmission capacity between Sweden and Finland is limited through to June 23," Nõu went on.

Riigikogu supports use of nuclear energy in Estonia

"The maintenance of the Olkiluoto 1 nuclear reactor is set to continue until the end of this week," he added.

Additionally, the eighth block of the Eesti power station is under maintenance until July 6. Poor wind conditions in recent weeks have also contributed to higher electricity prices.

"A drop in summer electricity prices in the Baltics can be seen primarily during the day and during sunnier hours. The greatest likelihood of low or negative prices occurs on weekends and when wind conditions are better than average, in addition to the presence of sunlight," Nõu went on.

Nevertheless, Estonia will not escape high peak prices, according to Nõu. "In order stabilize prices, the electricity system needs significantly more flexible production, which is currently insufficient in Estonia. By flexible production, we mean controllable capacities," Nõu added.

Despite it being summer, the electricity exchange price in Estonia remains high: on Friday, between the hours of 9 p.m. and 10 p.m., customers on an exchange-linked package were billed at €372.81 per MWh for electricity.

BAck to the news >