In 2023, electricity and gas prices were highly volatile. Such volatility was influenced by several factors, but difficult weather conditions, short- and long-term maintenance and repair work at production stations, as well as transmission capacity limitations both in Estonia and in neighbouring countries were the most important. In 2023, Estonia imported more electricity than it exported. Table 1 shows the import, export, domestic production and consumption of electricity in Estonia.
According to the Elering website, the average exchange price of electricity in the Estonian price zone in 2023 was 90.78 €/MWh. The most expensive average exchange price for electricity was in February at 113.14 €/MWh. The maximum exchange price for electricity was on 21 November 2023 at 777.18 €/MWh. The minimum exchange price for electricity was on June 16 at 60.04 €/MWh. Figure 1 shows the average monthly exchange prices in 2023.
The average exchange price of natural gas in the Estonian price zone in 2023 was 45.72 €/MWh, according to the Elering website. The most expensive average exchange price for gas was in January at 68 €/MWh. The market price for gas was at its highest on January 4, with the price of one megawatt of gas at 81.31 euros. The minimum exchange price for gas was on June 4, 29.42 €/MWh. Figure 1 shows that the average monthly exchange price for electricity has been more volatile compared to the average market price for gas.
According to German electricity futures, the estimated exchange price for electricity by 2025 is 79.50 €/MWh and the average projected exchange price for gas 32.15 €/MWh as of 6 February 2024.
In 2023, 47% of electricity was generated from non-renewable energy (including oil shale plants). Next, the figure shows biomass, which accounted for 25% of the total electricity produced in Estonia. Out of the total electricity produced in Estonia, 14% was generated from solar and wind energy and 1% from hydroelectric power.
Among the most significant events in 2023, we can single out the breakdown of the Balticconnector on 9 October. The estimated time for completion of the repair work is April 2024.