The renewable energy producer predicts that electricity prices in Latvia may sharply rise in winter—up to the crisis levels of 2022.
According to the international company "Eurowind Energy Neue Energien," if the Strait of Hormuz remains closed for an extended period, average prices could exceed €300 per megawatt-hour as early as the winter of 2026/2027.
Despite the fact that Latvia has significantly reduced its dependence on electricity imports over the past 20 years—from nearly 70% to less than 30%—the country remains vulnerable to external factors, experts note. Any shocks in global markets directly affect consumer bills.
The company emphasizes that the escalation of geopolitical situations, including the conflict surrounding Iran, impacts oil and gas prices, and consequently, the cost of electricity in Latvia.
According to Eurostat data, the European Union still relies on imports: more than half of its energy comes from abroad. This makes the energy market sensitive to crises—from military conflicts to logistical disruptions.
The head of the company, Arturs Toms Plešs, notes that in Latvia, the share of renewable sources already reaches nearly 46%, but oil and gas still play a significant role in final consumption.
This is especially felt in winter when solar and hydro energy production decreases—during this period, dependence on imports becomes most noticeable and reflects on prices in almost all sectors, from food to services.
A separate problem remains the weak development of wind energy. Compared to neighboring countries, Latvia significantly lags in wind energy production, which increases dependence on external supplies.
Experts emphasize that in the context of global instability, the only long-term solution is the development of domestic generation, primarily wind energy, which is not dependent on imports and helps curb price increases.
