How does the price of electricity vary depending on the season?

The price of electricity varies significantly depending on the season, and many factors affect this, such as demand, supply, weather conditions and energy production methods. In this article, we look at how these factors affect the price of electricity in different seasons.

Winter

The demand for electricity is usually at its highest in winter. This is due to the cold temperatures that increase the need for heating. In Finland, many households and companies use electricity for heating, which increases electricity consumption. In addition, short days and little sunlight increase the need for lighting. High demand combined with possible production restrictions, such as a lack of hydropower due to frozen waterways, can significantly increase the price of electricity.

Spring

In the spring, the demand for electricity starts to decrease, when the temperatures rise and the need for heating decreases. At the same time, the production of hydropower increases when the snow melts and the water flows increase. This increases the supply of electricity and can lower prices. Spring is often a time of transition, when the price of electricity can vary greatly depending on the weather conditions and the energy production situation.

Summer

In summer, the demand for electricity is usually at its lowest. Warmer temperatures reduce the need for heating, and longer days reduce the need for lighting. Solar power production is at its peak, which increases the supply of electricity. However, if the summer is particularly hot, using air conditioners can increase electricity demand and prices. In summer, the price of electricity is often lower than in winter, but it can vary depending on weather conditions.

Autumn

In autumn, the demand for electricity starts to rise again, when the temperatures drop and the need for heating increases. At the same time, hydropower production may decrease when water flows decrease. This can increase the price of electricity. Autumn is also a transition period, when the price of electricity can vary greatly depending on the weather conditions and the energy production situation.

Summary

The price of electricity varies depending on the season due to many factors. In winter, high demand and possible production restrictions can increase prices, while in summer, lower demand and increased solar power production can lower prices. Spring and autumn are transitional periods, when prices can vary greatly. Weather conditions, energy production methods and the market situation all contribute to the price of electricity in different seasons.

For more information about electricity price fluctuations, you can read, for example, Fingridin and From the website of the Energy Agency.