Increasingly wealthier Estonian can handle electricity prices

Grid distributor Elering chairman of the board Taavi Veskimägi told that the current high electricity prices stem from the high prices of coal and natural gas and the increased CO2 quota price. There is plenty capacity to produce electricity in Europe and people worried about the climate should consider considerably higher prices, he added.

“If we are speaking about the price of electricity in Europe, we must understand that not having enough production capacity in Europe is not behind the price increase, but the price increase stems from the prices of natural gas and coal having doubled or tripled since the start of the year and that the price of CO2 has doubled,” Veskimägi told. “If the input gets more expensive for a product, the product will obviously be more expensive.”

“So I would like to clear up a statement that has popped up over recent days that renewable energy has brought forth expensive electricity prices – certainly not. That it is still conventional thermal power plants, which produce electricity at higher prices today than before. It is the opposite, if there were more wind, the price of electricity in some hours would be significantly cheaper,” Veskimägi emphasized.

He said there are no issues in Europe when it comes to the security of electricity supply. “Everything is fine with the supply and the electricity market, there are more than enough power plants. So there is no danger to the electricity supply for Estonian consumers in light of these higher prices,” the Elering chief added.

Plants suspended due to low prices

Veskimägi explained that operation in some power plants has been suspended, since producing electricity would be more expensive than what is available on the market.

 

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