"Deficit virtually renders the exchange pointless," Konist said. Until the EU can develop major production capacity to generate more power than we consume, the exchange is unnecessary."

Konist said he is in favor of pulling out of the market system. "Sweden and Norway have limited energy exports, and we should consider leaving in light of such news," he added.

He said that regulated prices are the solution. "It makes more sense as there will be certainty of supply. There is no such certainty on the market, as we can see right now."

Konist pointed out that Europe has been dependent on imported energy for a long time, which has been put in sharp contrast by Russia's war in Ukraine.

While Estonia has been better off than the rest of Europe in terms of having to import less of its energy, there is a shortage of managed production capacity. "The old Narva power blocks are often in need of maintenance," he explained.

"Creating new production capacity requires major investment," Konist said. "We have been naive in hoping someone else will make these investments for us. Investing in energy security is something Estonia must do and accept that it requires additional expenses."

Konist said that currently sky-high prices fail to motivate producers to invest as additional capacity would bring prices down.

The Estonian distribution network also needs major investment, he added.

Konist believes it would be possible to generate power for €120-140 per megawatt-hour in Estonia even in the conditions of high CO2 quota prices. In recent weeks, daily average prices have been far more expensive than that.

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