Summary of Latvia’s Energy Landscape in 2025
Here’s a summary of Latvia’s energy situation in 2025, based on the provided text:
Electricity:
* Price Differences: Electricity prices in Latvia are higher than in Estonia due to ongoing repair works in Estonia that limit the transmission of cheaper electricity. This impacts the flow of electricity from Finland to Estonia and then to Latvia. These repairs are expected to be completed in early 2027.
* Grid Synchronization: The Baltic States continue to strengthen their energy infrastructure resilience after synchronizing with the European electricity grid, focusing on cooperation within the EU and protection against hybrid threats.
Natural Gas:
* Stable Prices: Natural gas prices on the European TTF exchange averaged 36.32 EUR/MWh in 2025, serving as the benchmark for both imports and local supplies in Latvia.
* Increased Competition: The natural gas market has opened up, with five traders (AS “latvijas Gāze”, AS “Latvenergo”, SIA “Elenger”, SIA “Alexela” and SIA “MVBK”) offering services to households, fostering competition and perhaps better deals for consumers.
* Strategic Storage: The Inčukalnas underground gas storage facility remains strategically crucial for the Baltic States and Finland, reaching 82% of its reserved capacity (14.5 TWh).
* Decreasing Consumption: Overall natural gas consumption in Latvia continues a downward trend. 7.8 TWh was consumed in the first 11 months of 2025, slightly less than the 7.9 TWh consumed in the same period of 2024.
Centralized Heat Supply:
* Atypical Weather: 2025 experienced unusual weather patterns, including a warmer winter and contrasting spring/summer temperatures, impacting thermal energy consumption.
* Renewable Energy Growth: There’s a continued effort to reduce reliance on natural gas in heat supply, with renewable energy resources reaching approximately 61% of the heat supply – one of the highest levels achieved.Wood chips remain the most economically advantageous resource for centralized heat supply (~25 EUR/MWh).
* Reduced Hydroelectric Generation: Low snowfall led to weak spring floods, reducing electricity generation from hydroelectric plants and increasing reliance on thermal power plants.
In essence, Latvia in 2025 is focused on diversifying its energy sources, increasing competition in the natural gas market, and strengthening its energy infrastructure following synchronization with the European grid.A key trend is the growing use of renewable energy in heat supply and a gradual decrease in overall natural gas consumption.