Estonian Power Prices Hit New Record Amid Deepening Supply Deficit
Estonia's electricity prices surged to a new yearly high of €505 per megawatt-hour as a structural energy deficit, revealed by a 3 terawatt-hour shortfall in 2025, was compounded by key power plant outages and severe winter weather.
- —Estonian electricity prices reached a new year-to-date high of €505 per megawatt-hour on January 26, 2026, driven by cold weather, high consumption, and a lack of wind.
- —Production capacity limitations, including the Auvere power plant being out of operation and reduced output from the Estonia power plant's eighth block, are exacerbating price increases.
- —Despite operational capacities being available, older, less efficient oil shale power plants are not being utilized at full capacity due to high fuel costs and market volatility, which would otherwise help lower prices.
- —Estonia's electricity consumption in 2025 was 8.3 terawatt-hours, with domestic production covering only 63%, resulting in a deficit of 3 terawatt-hours, highlighting a growing reliance on imports.
- —High electricity prices are expected to persist until the end of the week, with a potential decrease anticipated if wind conditions improve by Thursday.
Recap
The record electricity prices are not merely a symptom of bad weather but a clear indicator of a structural failure in Estonia's energy strategy. The country's reliance on imports and the economic non-viability of its backup oil shale plants have created a critical vulnerability. Despite a technically reliable grid, Estonia's energy security is fundamentally compromised until it invests in significant new, controllable domestic power generation to close a growing supply deficit that external market forces can easily exploit.