Estonian Power Grid Under Strain as Outages Trigger Record Prices
Estonia's average monthly electricity price soared to a record high of over €154 per megawatt-hour in January, driven by critical power plant failures, high demand from cold weather, and low wind output that also impacted energy costs across Latvia and Lithuania.
- —Estonia recorded its highest monthly average electricity price in January, exceeding €154 per megawatt-hour (MWh), driven by a combination of factors including power plant outages, high demand due to cold weather, and low wind output.
- —Major power plants in Estonia, including Auvere Power Plant and a boiler at Eesti Power Plant, experienced significant downtime for repairs, contributing to a reduction in available production capacity.
- —The high electricity prices in Estonia were mirrored in neighboring Latvia and Lithuania, which saw similar average prices, while Finland experienced lower, though still elevated, prices.
- —Specific daily prices in Estonia reached significantly higher peaks, with one day in late January seeing an average price of €248.29 per MWh and peak hourly prices exceeding €350 per MWh.
- —The average electricity price in January was substantially higher than the previous year, with Estonia's average price in January 2025 being €92.02 per MWh.
Recap
The convergence of unexpected power plant outages with predictable winter demand has exposed significant vulnerabilities in Estonia's energy infrastructure. This is a stress test revealing the region's dependency on a few key generation assets and the immediate, cascading economic consequences across the interconnected Baltic energy market when those assets fail. The situation underscores the fragility of the supply chain, with consumers bearing the immediate financial burden of systemic weaknesses.