ESTONIA'S SOARING ELECTRICITY PRICES: WEATHER AND MARKETS BLAMED (EXPERTS)
Estonian electricity prices have surged dramatically, mirroring a rapid increase in power costs across the Baltic region. The new average price jumps to €191 per MWh, a roughly 50% rise from last week's €126 and the highest point so far in 2025. Experts attribute this sharp hike primarily to weather conditions and market dynamics.
According to Estonian electricity and gas transmission system operator Elering, the key factors are "less wind this week, higher electricity consumption due to colder weather, and a slight increase in gas price." While gas prices have reached a multi-year high on the Dutch TTF but are expected to decline, the Baltic region faces reduced grid connectivity.
The crucial underwater Estlink 2 cable remains out of service due to anchor damage. Furthermore, the limited operational capacity of the Lithuanian-Finland cable is exacerbating the situation, as full functionality would significantly lower electricity prices. Finnish police have detained the crew of a Russia-linked tanker suspected of causing the Estlink 2 damage indefinitely.
This incident occurs against a backdrop of heightened vigilance in the Baltic Sea region following a series of incidents involving undersea cables and gas pipelines since 2022.
In a significant move over the weekend, Lithuania, Latvia, and Estonia disconnected from the Soviet-era energy grid, fully integrating with the European energy system. This severing of energy ties with Russia, a major oil and gas producer, carries substantial geopolitical and symbolic weight, with efforts accelerating after Russia's invasion of Ukraine three years prior.
