The future of energy in Narva and Ida-Virumaa: there is no opportunity to abandon the shale, and Trump is sometimes better to be silent
At the Wednesday, April 9, a business breakfast organized by the city administration, Narva entrepreneurs met with representatives of the sphere of energy. Lauri Karp, Chairman of Enefit Power As, outlined the situation in the field of electricity and heat generation. If you squeeze his performance up to one sentence, then we can say – “The situation is completely difficult, but we cope.”
Estonia is faced with serious challenges in the energy sector, and the latest discussions in expert circles and among industry representatives revealed both achievements and problems that require urgent solutions. Against the background of an increase in electricity prices, dependence on imports and the need to modernize infrastructure, the country is looking for ways to energy independence.
According to Lauri Karp, this goal does not seem achievable. The rate made on renewable energy sources did not justify itself completely. Prices are affected by many factors, and not all of them can be controlled.
Slear generation began to decline significantly in Estonia since about 2019. The main reason was the increase in price quotas for greenhouse gas emissions, but at the same time, the price of the slate itself grew (in the period from 2018 to 2022, it almost doubled – from 13 to 24 euros per ton).
40% of the time renewable energy sources that have been bet in recent years are not able to cover our consumption.
“Today we are forced to import electricity. At the same time, we must understand that it is not a ministry and not“ Vasya and Petya ”decided to reduce the volume of shale burning – the rules are dictated here. Every day, our stations declare their prices, and the market decides whether these capacities will be redeemed,” Karp explains.
Changed the export for imports
“Today we find ourselves in a situation where we cannot provide ourselves with cheap energy, although we had previously been exporters. Now 40% of the time renewable energy sources that have been on in recent years are not able to cover our consumption, and we are forced to import, mainly from Finland. It also affects the price – imagine that electricity is received by a price In Estonia, we get it already at the cost of 90 euros?
The disconnection from the Russian power supply in February this year brought new expenses – now it is necessary to spend money on maintaining the frequency, which requires investment in equipment (for example, powerful batteries) and significant operating expenses. All this, coupled with volatile prices that jump from “almost free” to “unbearably expensive”, deprives our large production to calmly plan their activities.
Trump factor and peaceful atom
Eesti Energia is a major concern that is not just the production of electricity. “Huge investments are made in the production of shale oil, and when US President Donald Trump says something unexpected, then oil prices are falling, and this beats in terms of profitability of our factories, which is drawn by a whole train of various expenses,” Karp added.
A similar influence on the energy market and energy markets is virtually impossible to predict. “Now the price of oil has fallen to $ 60 for a barrel, which is already painfully affecting our oil and fuel production. We are not Saudi Arabia, in which it poured into the Earth and poured. Our shale processing technologies require tangible costs for obtaining the final product, and its competitiveness depends on the price of oil in world markets. And it turns out on what Donald says. Trump, ”emphasizes Lauri Karp.
Nuclear energy, according to Karp, is also not a panacea, despite a wide public discussion. “The price of Megavatt, developed at the nuclear power plant, is very high, namely the price of energy is our main problem. In addition, we do not have experience in operation, and even more so the construction of nuclear power plants,” Karp said.
What does all this mean for Narva and Ida-Virumaa?
In the coming years, the shale energy is closed and will not be abandoned. Today, and in the foreseeable future, the Baltic power station and Auver station will remain our most stable suppliers.
“Last year, the Auver station demonstrated reliability at the level of 89%, which is a very high indicator. The Baltic station, in fact, is also indispensable, since in addition to energy it also generates heat. The alleged construction of the gas station will further increase its own capacities and increase the flexibility of generation – still, the shale station cannot be included and turned off as an electric kettle, and the gas allows you to achieve it,” Carp summed up.
The development of their own production, judging by the views that sounded at the meeting, is now a key vector for Estonian energy and ensuring energy security and independence. And the role of Narva and Ida-Virumaa here will not only decline, but also grow.
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