Growth in electricity storage capacity smooths Estonia's intraday price swings

This year the difference in electricity prices between morning and evening peak hours and midday is smaller than in previous years. The main reason is the significant growth in electricity storage capacity, which reduces renewable energy oversupply on the market.

Estonia and the wider European electricity market are experiencing a notable shift in intraday price behaviour this year, with price differences between morning and evening peak hours and midday smaller than in previous years. Energy experts point to the significant growth in electricity storage capacity as the main driver of this change.

The increase in storage capacity means that during peak renewable energy generation periods, particularly on sunny midday hours, the market no longer accumulates such large energy surpluses as before. Instead, cheap energy is stored in batteries and released during more expensive peak hours, smoothing out fluctuations throughout the day.

In previous years, intraday price swings were particularly sharp: midday hours often saw prices plummet to very low levels or even turn negative, while morning and evening peak demand periods saw prices rise substantially. Such volatility created difficulties for both consumers and producers, who had to continuously adjust their operations in response to market prices.

The wider adoption of storage technologies, particularly large-scale battery systems, is considered one of the most important steps in ensuring electricity market stability as the share of renewable energy grows. Greater storage capacity acts as a price buffer in the market, protecting consumers from sudden price shocks.