Learn about the most important industry news and trends
Learn about the most important industry news and trends
It comes as no shock that for many industries, last year's growth trends were directly affected by the spread of Covid-19 and the relentless struggle of dealing with the consequences of various restrictions. However, the global pandemic was but one of the many factors affecting the energy sector. The year would’ve certainly been eventful for the sector even without the pandemic, dripped with intrigue about how these developments will affect us all in 2021.
The number of households and companies in the Baltics, that became electricity producers instead of consumers has more than doubled last year. Also in Latvia, the number of microgeneration projects in 2020 has increased by 66%, and, according to the aggregated data from the energy company Enefit, it is mainly caused by the solar energy solution installation. In 2020 Enefit group companies have carried out more than 400 solar energy projects in the Baltics with the total power output of 8,5 megawatts.
The European Union has said strictly that its direction of development is painted in green. By 2050, Member States of the EU must reach the point, where nature is able to fully absorb the carbon emissions generated by the operations of humans. This will affect each one of us and significantly affect competitiveness of companies by demanding more energy-efficient and greener energy solutions. Therefore, it is very important not to stay catching up to our neighbours.
Changes have taken place in the Board of SIA Enefit, subsidiary of the Estonian energy company Eesti Energia, as the previous Head of Business Development and Board Member of Enefit Krists Mertens was appointed as the company’s Chairman of the Board. Mārtiņš Vancāns, Head of the Private Customer Sales and Service segment of Enefit, and Inese Dosē, Head of business Research and Development of Eesti Energia, have also been appointed as members of the Board. In turn the former Board Member of Enefit Indrek Randveer has taken on new professional challenges outside Eesti Energia, hence the operations of Enefit in Latvia will be supervised by a Board consisting of three members.
Enefit, the second largest electricity seller in Latvia, has built the first liquefied natural gas (LNG) plant required for processing at Līcis-93 in Kolka. Hence the company's plant is well-thought-out in the development and use of more environmentally friendly fuel risks, taking advantage of natural gas without direct connection to the gas pipeline network. The station established in Kolka is Enefit's parent company Eesti Energia's first liquefied natural gas facility in the Baltics, which marks a new direction in the energy company's service portfolio.
Green energy is an almost ideal solution for a better day-to-day life: it’s environmentally friendly, has great potential and is a good investment in the future that can operate without State subsidies even now. Meanwhile in Latvia the maintenance of renewable resource balance has been entrusted to hydroelectric power plants, there are few new green energy projects and a small percentage of people choose to use renewable energy on a daily basis, whereas the neighbouring countries are developing wind parks and a third of all households use energy that’s generated in an environmentally friendly way. What’s keeping us from living greener and creating a sustainable power industry?
Enefit, the second largest electricity trader in Latvia, increased its client portfolio three times in 2019 and reached a turnover of 58.06 million euros, thanks to a successful start in the household market. In total, transactions on the sales of 1017 GWh electricity and 330 GWh gas were concluded. Compared to 2018, the number of energy efficiency projects increased three times, thereby modernising the energy field of Latvian companies.
Daily life in today's electrified world is not imaginable without various electric appliances, which take care of our daily needs, comfort and entertainment. Electricity prices are constantly fluctuating, and other daily expenses are growing accordingly, thus making us seek more actively ways to save without losing the usual comfort. At the same time, there is always a question – how much energy do we “let go through the chimney” due to inefficient household management?
Although solar is not yet a sufficiently popular energy source in Latvia, the interest of households in solar energy is growing rapidly. Data summarised by Enefit clearly show that the number of households producing their own energy has doubled in the past three years. This year’s survey demonstrated that 30% of Latvian consumers were considering installation of solar energy solutions in their homes.
During the couple of weeks since the energy company Enefit started selling electricity to Latvian households, high interest in the offer from the company has enabled them to rapidly strengthen positions in this market segment. At the moment, Enefit already provides electricity to more than 1,200 households. High interest can be observed in the installation of solar panels, which can be explained by the ever-increasing popularity of green energy solutions.
Enefit, the second largest energy trader in Latvia, has continued its growth in 2018 by expanding its customer portfolio and increasing the volume of energy sold by 15%. The development of the company was primarily determined by the successful offering of energy efficiency solutions as well as active operation in the newly opened natural gas market. Entry into the Swedish and Finnish household electricity market in the spring of last year, in turn, has created a stable platform for acquiring the Latvian household market.
By opening an improvised place of selling in the Vegetables Pavilion of Riga Central Market on 5 March, Enefit, a subsidiary of the largest energy producer in the Baltic Region, Eesti Energia, commenced selling of electricity to Latvian households, thus reminding each inhabitant that the electric energy market is open. The key to Enefit’s offering is simple products that offer more favorable purchasing of electricity with no trader markup for volume consumed. Consumers are also offered a convenient digital self-service platform and new solutions for the use of renewable energy resources in their households.
The power industry reached a kind of maturity last year when consumer costs for electricity and natural gas were primarily influenced by global open market processes and not by changes in local market regulations or the infrastructure. At the same time, this means that, due to the global increase in the price of power resources, government decisions regarding complete opening of the natural gas market and review of the MPC will make all consumers, be they households or a businesses, monitor their consumption much more actively in 2019.
Spring is here and many are already enjoying themselves in the warm sunshine before the real sunbathing season begins. But some are enjoying sunlight throughout the year even if the sky is cloudy - the solar energy produced by the solar panel system can easily be reflected in the monthly electricity bill. Jānis Kronbergs agreed to tell as more about the cost of installing and operating a medium power solar panel system, and whether the benefits live up to expectations. When building a private house, Jānis decided to invest more at once so that the bills would be lower in the future.
The electricity market price on the stock exchange is much higher than usually at the beginning of the year. We will explain why the prices have increased, which users are the most affected ones and how to protect yourself from the high stock prices best. Since 2007, here in Latvia we have been purchasing electricity on the free market, where its price is determined by the relationship between supply and demand on the Nordic and Baltic power stock exchanges. The average stock exchange price in January this year was 53.54 € / MWh, which is a 19% increase compared to December (44.86 € / MWh) and a 30% increase compared to the average market price in November (41.10 € / MWh).