Baltic Electricity Prices Fell by 24% in December
In December 2025, the average electricity price in the Baltic states declined by around 24% compared with November, reaching the lowest level since August 2025, according to the monthly power market review prepared by Latvia’s transmission system operator Augstsprieguma tīkls.
In Latvia, the average price fell to €83.85/MWh, down 24% month-on-month and 7% lower than in December 2024. Lithuania recorded the same average price and monthly decline, while in Estonia prices dropped by 23% to €73.58/MWh. Across the Baltic region as a whole, the average price stood at €80.43/MWh, 9% below the level of December 2024.
The price decrease was driven primarily by stronger wind conditions, which significantly increased wind power generation, particularly during the final third of the month. Lower electricity consumption during the holiday period further contributed to price pressure, while consistently high electricity imports into the Baltic region helped keep prices at a lower level.
Electricity imports into the Baltics remained broadly unchanged compared with November but were 18.2% higher year-on-year. Imports from Poland fell sharply, while slightly lower flows from Sweden were offset by increased imports from Finland.
Price differences between Estonia and Latvia–Lithuania continue to be influenced by grid maintenance works in Estonia, which limit the transmission of cheaper electricity imported from Finland. These works are scheduled to be completed in early 2027.
Why this matters
A reminder of weather-driven volatility
The December price drop highlights how strongly Baltic electricity prices remain tied to weather conditions, particularly wind generation. High renewable output can quickly push prices down, but the reverse remains equally possible during low-wind periods.
Imports still play a stabilising role
Despite growing renewable capacity, the Baltics continue to rely heavily on cross-border imports, especially from Finland. This underscores the ongoing importance of interconnections and regional market integration.
Infrastructure constraints still shape prices
Persistent price gaps between Estonia and the southern Baltics show that grid bottlenecks and maintenance works can have a direct and lasting impact on market outcomes — sometimes outweighing generation fundamentals.
Limited impact for many consumers
The price decline directly affects only those consumers on spot-price–linked contracts. For households and businesses on fixed tariffs, the effect is indirect and delayed, if felt at all.
One-line takeaway
December’s price drop shows that the Baltic power market can deliver low prices under favourable conditions — but structural dependence on weather, imports, and grid constraints remains. BSM © 2026
Image: photos/photo_147@06-01-2026_22-40-21.jpg