The Reform-Eesti 200 coalition agreement allows oil shale power stations to remain operational until new dispatchable capacity is added. Meanwhile, Elering, the grid distributor, says power stations in the eastern border town of Narva should remain in reserve until 2035. However, this means a higher electricity bill for consumers.

Estonia needs 1,000 megawatts of dispatchable capacity to ensure supply. This reserve was originally to be provided by Eesti Energia's oil shale plants until next year. However, the coalition agreement significantly extends the lifespan of the plants.

Raine Pajo, chairman of the board at Eesti Energia subsidiary Enefit Power, said: "These are some of the oldest plants overall, I think even in Europe. But they can be extended. Since they operate relatively little, just in standby, they can still be kept running for a long time. It makes sense. As long as alternatives are lacking, the oil shale blocks must be kept running."

Elering says Eesti Energia's oil shale plants could ensure supply security until 2035. By the end of the decade, Elering plans to procure quickly dispatchable gas plants and battery storage to cover half of the reserve provided by the oil shale plants.

Erkki Sapp, board member at Elering, said: "After 2035, an additional capacity mechanism must be established to ensure sufficient dispatchable production capacity beyond 2035."

Keeping oil shale plants in standby mode costs up to €50 million annually. Until now, this cost has been covered by Eesti Energia. Starting this year, however, Elering will procure isolated operation reserve, passing the cost to consumers.

"For the electricity consumer, this means an additional annual cost of about €40 million, based on current knowledge. That's roughly a couple of percent of the final electricity price," Sapp said.

Among Eesti Energia's plants, the Balti soojuselektrijaam in Narva could continue operating after 2035, provided it is converted to biofuel.

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