Energy, Energy Market, Estonia

All electricity produced during these eight ours was generated from renewable or alternative sources, spokesman for Eesti Energia Priit Luts told.

While in January, the capacity of Narva power plants reached 1,900 MWh during peak hours, last week production ranged from 50 to 200 MWh in accordance with changes in the price of electricity during the day.

The small production quantities result from the combined effect of high price in the carbon dioxide quota, which reaches 27 euros per ton, and the fluctuation in the market price of electricity. 

Decades ago, when the Narva power plants were designed, they were configured to work on a stable mode; when the electricity market opened in 2013, however, a need arose for adjusting the output and the number of working energy blocks.

In order to render the power plants more effective and optimize costs, Eesti Energia's subsidiary Enefit Energiatootmine developed solutions to attain the flexibility required -- the stations now have the capability to produce electricity at maximum capacity during hours when the price of energy is higher and reduce their production when the price drops.

"This is what our future will be like. We will be able to produce the maximum amount of electricity when needed. On the other hand, when we do not have access to the market due to the price, we can power our stations down to zero," chairman of the board of Enefit Energiatootmine Mart Proos said.

Eesti Energia will announce its economic results and detailed production volumes for the second quarter of the year on July 30.

Eesti Energia said in early June that in addition to the previously announced lay-off of 400 people, the energy group may fail to provide work to up to 1,300 employees this summer.

"These people who are doing this extremely necessary, very specific job, have to be cherished and we have to do everything with that in mind as we see today that the use of oil shale in the production of electric energy is declining anyway," Ratas said at the government press conference on June 6.

The prime minister said that the new solutions already on the table include options such as the establishment of a semi-refining plant, whereas Eesti Energia is planning to build a new shale oil plant as well.

"Of course the government is looking at these options as well, that based on considerations of strategic supply and energy security, one day people will have to be kept on the payroll and they are not actually doing their work every day," Ratas said.