Eesti Energia to separate reserve power plants and liquid fuels
Eesti Energia is establishing a separate company to operate reserve power plants that ensure the security of supply for the Estonian state. The goal is to make the management of reserve capacities, which rarely participate in the electricity market, clearer and more transparent.
Eesti Energia's board and Enefit Power's supervisory board chair, Andrus Durejko, explained that separating reserve power plants from liquid fuel production will enable these two distinct operational areas to function in the most efficient and profitable manner for the owner, the Estonian state.
"Maintaining older oil shale power plants results in significant annual losses for Enefit Power," Durejko said. "Together with the state, we are seeking a long-term and sustainable solution for maintaining these oil shale power plants, which are critical for the electricity systems of both Estonia and the entire Baltic region. At the same time, this change allows the large industrial segment, with high growth potential in global and domestic markets, to continue its development in the chemical industry. This makes the sector attractive for both investors and future employees."
Eesti Energia will offer electricity supply security services to the state through a new subsidiary. Starting April 1, 2025, this subsidiary will include the Eesti and Balti power plants, and as of January 1, 2026, the Auvere Power Plant as well.
Assets and processes related to liquid fuel production, chemical industry development and oil shale mining will remain within the existing company.
Of Enefit Power's current 1,700 employees, more than 400 will transition to the new reserve power plant company starting April 1, while the rest will remain with the company focused on developing the liquid fuels sector.
The structure and leadership composition of the new companies will be determined once the necessary legal procedures are completed, the company stated.
Eesti Energia's general meeting, chaired by Minister of Finance Jürgen Ligi (Reform), approved the supervisory board's decision to divide the group subsidiary Enefit Power.
Enefit Power AS is a wholly-owned subsidiary of Eesti Energia, with its core activities including the production and sale of electricity, heat energy, oil and its by-products. Enefit Power comprises the Narva Quarry, Estonia Mine, logistics operations, the Balti Power Plant, the Eesti Power Plant, the Auvere Power Plant, and liquid fuel facilities such as the Enefit 140, Enefit 280 and the under-construction Enefit 280-2 plant.
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Editor: Marcus Turovski
