In a change of fortune from recent years, Narva is set to be the most expensive city in terms of district heating – hot water centrally controlled and piped into apartment blocks purely for that purpose – since natural gas will be used in the heating process, at least initially.

Natural gas prices are set to surge further on December 1. While offering relief, the Baltic power station's limited operations cannot fully replace natural gas use.
The Baltic power station is oil shale-fired, a fuel source that has been out of favor for several years now due to its conflict with EU climate change goals but which had previously provided power at a cheap rate.

With district heating alone, the hot water, which is a by-product of electricity generation itself, could be used – a practice known as co-generation.
Narva is also one of the colder parts of the country during the winter.
Enefit Power, a subsidiary of the state-owned Eesti Energia, is responsible for restarting the Baltic power station.

Narva's heating costs have surged dramatically since switching to natural gas, with rates increasing by over 80 percent last year and a new 1.5-fold hike due at the start of December.

Enefit Power CEO Lauri Karp said: "We will operate the Baltic power station for a limited number of months only, namely the winter months, where we assume that the price of electricity will support that volume of heat production."

"The price of electricity has to be at least €100-€110 per MWh. We are not talking about just one day; we are looking at the entire period, and our decision definitely has a three-month perspective," Karp continued.

The climate ministry also supports the reactivation of the oil shale power plant.

Ministry of Climate Deputy Secretary General Jaanus Uiga said: "If they can sell their electricity on the electricity market and obtain a price for residual heat which has been coordinated with the Competition Authority, then such a solution is feasible."

The Baltic power station's limited operational hours – there are a scheduled 2,000 hours remaining before an overhaul must proceed – plus competitiveness in the electricity market mean it cannot fully replace Narva's reliance on expensive gas heating this winter, however.

Narva Mayor Jaan Toots (Center) said: "And now all hinges on how much we will have to rely on natural gas-generated heating. Doing so will come as a blow to our residents and to everyone, including our businesses. I think the period relying on gas will last about a month and a half. It will be very painful for all of us."

Enefit Power says the Baltic power station should remain operational during ensuing winters too, until a new heating solution is found for Narva – which may take at least three to four years.

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