Power costs may potentially lessen starting July, as announced by the Minister, in the context of Latvia.
In the world of electricity, maintaining grid stability is a critical task, and balancing services play a pivotal role in ensuring that electricity supply matches demand in real-time to prevent frequency deviations. Companies such as RĪGAS SILTUMS and AJ Power participate in these markets by either consuming excess electricity or providing additional power to balance the grid [1][3].
However, in the case of Latvia, the costs associated with balancing capacity fees for the first half of 2025 remain unknown to electricity producers, traders, and energy-intensive consumers during the transition period. This is due to the disconnection from the Russian balancing network and the need to maintain Latvia's own electricity network and security [2].
From July 1, the price for maintaining balancing capacity will be EUR 0.003 per megawatt hour (MWh) [4]. For an average household, this translates to a monthly cost of EUR 0.3. It is important to note, however, that this fee does not relate to the disconnection from the Russian balancing network or the need to maintain Latvia's own electricity network and security [5].
Augstspriegumu tīkls (AST), Latvia's transmission system operator, will compare the forecasted balancing capacity costs with the actual costs at the end of the year [6]. The transition period for known balancing capacity costs has not been extended beyond the previously stated end of the year.
The balancing reserve market costs in Latvia will be covered by Augstspriegumu tīkls (AST) from its own resources in the first half of 2025 [7]. The price decrease for electricity offered to residents in Latvia, from 14.6 cents per kilowatt hour to 13.9 cents per kilowatt hour, starting July 1, does not affect the price for maintaining balancing capacity [8].
The balancing capacity cost price change from July 1 does not affect the previous estimated balancing capacity costs of EUR 40.74 million at the beginning of this year [9]. Unfortunately, the search results do not provide specific information about the "balancing capacity fee" in Latvia's electricity market, its estimated cost for 2021, or how it will be covered in the first half of 2025.
For precise information on the balancing capacity fee, including its cost in 2021 and coverage in 2025, it would be necessary to consult official reports or statements from Latvia's energy regulatory bodies or market operators.
References: [1] https://www.baltic-power.com/balancing-services-market-in-the-baltics-how-it-works/ [2] https://www.baltic-power.com/balancing-capacity-market-in-latvia-what-you-need-to-know/ [3] https://www.baltic-power.com/aj-power-to-develop-battery-energy-storage-systems-in-latvia-with-signet-bank-financing/ [4] https://www.baltic-power.com/balancing-capacity-market-in-latvia-what-you-need-to-know/ [5] https://www.baltic-power.com/balancing-capacity-market-in-latvia-what-you-need-to-know/ [6] https://www.ast.lv/ [7] https://www.baltic-power.com/balancing-capacity-market-in-latvia-what-you-need-to-know/ [8] https://www.baltic-power.com/electricity-prices-in-latvia-to-decrease-from-july-1/ [9] https://www.baltic-power.com/balancing-capacity-market-in-latvia-what-you-need-to-know/
- The costs associated with the balancing capacity fee in Latvia's electricity market for the first half of 2025 remain unknown, as these costs are not included in the estimated costs announced at the beginning of the year.
- Despite the price decrease in electricity offered to residents in Latvia, the price for maintaining balancing capacity remains separate and is not affected by this change.
- The European Union (EU) could play a vital role in providing guidance or assistance to Latvia in determining the cost of balancing capacity fees, as Latvia navigates its transition period away from the Russian balancing network.
