Estonia Relaunches Narva Power Plants Because Of Rising Energy Prices
Estonia has restarted its Narva shale oil power plants as the cost of electricity has been breaking record after record in recent days, Estonian broadcaster ERR reported Tuesday.
An exchange price of €141 per megawatt of electricity and a projected €160 for Wednesday have forced authorities to de-mothball Narva power plants and run all power generation equipment to curb price increases, ERR noted.
According to Andres Vainola, the head of Enefit Power, which belongs to the Eesti Energia Group, this helped curb the price increase somewhat, but the cost of energy is quite tangible for the consumer because of the high price of carbon dioxide CO2 emission quotas.
« I remind you that 75-80% of that price of electricity that we produce for the market is made up of that, and it’s environmental taxes. This is mainly due to high CO2 prices, » Vainola told ERR.
In recent years, the four generation units at the Narva power plants operated at minimum load due to the high price of CO2 quotas. Then the government decided to stop producing shale oil electricity and put the power units into the state reserve.
The market prices of electricity sold in Estonia are formed on the Nord Pool exchange, which brings together the Baltic and Nordic markets.