Estonian Power Grid Strains as Plant Outage, Deep Freeze Send Prices Soaring
Estonia is facing its highest electricity costs in over two years, with average day-ahead prices on the Nord Pool exchange hitting nearly €390 per megawatt-hour on Tuesday as a key power plant remains offline for repairs during a persistent and severe cold snap across the Baltic region.
- —Estonia is experiencing exceptionally high electricity prices, with the average day-ahead price on the Nord Pool exchange reaching nearly €390 per megawatt-hour (MWh) on Tuesday, February 2, 2026.
- —The elevated prices are attributed to a combination of persistent frigid temperatures across the Baltic region and Finland, leading to increased electricity consumption, and significant supply constraints.
- —A key factor contributing to the supply shortage is the ongoing repair of Eesti Energia's Auvere Power Plant, which has been offline since January 7, 2026, and is expected to resume operations on February 10, 2026.
- —Electricity prices in Estonia are projected to remain above €400 per MWh for most of Tuesday, with peak prices expected to exceed €655 per MWh in the early evening.
- —These prices are the highest seen in Estonia in at least 25 months, with a comparable surge last occurring in January 2024.
Recap
The record electricity prices in Estonia are a direct consequence of a supply-demand crisis where a critical infrastructure failure—the Auvere plant outage—coincided with a rare, prolonged weather event. This exposes the Baltic region's thin supply margins and its vulnerability to synchronized shocks, where a single point of failure can trigger market-wide instability. The situation is a stark indicator of the economic risks tied to energy infrastructure reliability amid volatile climate patterns.