Only new renewable capacities able to lower electricity prices

The record-breaking electricity price this week has consumers worried. While energy companies and politicians are trying to mitigate the blow, the only thing that can keep the price down in the long run is having enough environmentally friendly production capacity.

The world’s largest oil shale heat and power plant, first launched half a century ago, has once again become the flagship of national energy company Eesti Energia. Because the company’s newest Auvere power plant is undergoing maintenance, the Estonia Power Plant is currently generating more than half of power used in Estonia.

Four blocks of the power plant are in use, including three older ones that sport a bigger carbon footprint and where power generation is, therefore, more expensive. But the market price of electricity is currently so high that even power generated by older blocks comes off cheap.

Another factor in the Estonia Power Plant’s success is use of renewable energy sources. The Narva power plants are largely hybrid solutions, using wood and coke gas to generate twice as much renewable energy than all Estonian wind farms combined. All without renewable energy support.

“Waste wood and coke gas make up roughly 35 percent of the fuel we use. The most important aspect of this is lowering the cost price of production. We are in a much better competitive position than gas plants in Latvia or Lithuania or coal plants in Finland and Poland because they are not using renewable fuel sources. That is our edge. Therefore, were we not on the market with our blocks, the missing power would very likely be imported from Latvia, Lithuania and other neighboring countries at an even higher price,” said Andres Vainola, CEO of [Eesti Energia subsidiary] Enefit Power.

Vainola said that Estonia’s own power plant is currently keeping the price lower for the consumer by a few dozen euros.

Read more: ERR.EE

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