Enefit Power Wins Tender for Electricity Reserve Capability
Elering AS, the national Transmission System Operator of Estonia, has successfully completed the public procurement process for securing reserve capability in the electricity sector. The notable winner of this tender is Enefit Power OÜ, a subsidiary of the renowned Eesti Energia Group. This crucial service ensures the availability of up to 1,036 megawatts of generation capacity for the Estonian electricity system, with an annual cost capped at EUR 59.5 million, exclusive of VAT. This new financial arrangement means that electricity consumers will now bear the cost of ensuring reserve capacity capability, alleviating the previous obligation on the company to cover expenses independently.
Contract Signing Timeline
Plans are underway for the contract to be executed by the end of November. This marked step is anticipated to streamline how reserve electricity capacity is managed and funded moving forward.
Cost-Based Service Pricing
The pricing structure for the service will be based on direct costs, adhering to a comprehensive auditing process governed by a specific methodology. Under these terms, Elering will only reimburse amounts directly associated with providing the service. Interestingly, Enefit Power will also have the opportunity to engage in additional energy markets with its capacities. Should the revenues gained from these markets surpass initial expectations from the tender, the costs allocated for the reserve capacity service will consequently be reduced.
Further Information About Enefit Power
For those seeking more details about Enefit Power’s operations or related inquiries, Danel Freiberg, who serves as the Head of Treasury and Financial Risk Management at Eesti Energia AS, is available for contact. You can reach him directly at +372 5594 3838 or via email at danel.freiberg@energia.ee.
Frequently Asked Questions
What is the main outcome of the tender?
Enefit Power OÜ has been awarded the tender to ensure the electricity reserve capability for Estonia, securing a capacity of up to 1,036 megawatts.
What will be the yearly cost associated with this service?
The maximum cost for the service will be EUR 59.5 million per year, without VAT.
How will the pricing of the reserve capability service work?
The service will be cost-based, and audits will be conducted to ensure reimbursements are only for costs directly linked to providing the service.
Can Enefit Power participate in other markets?
Yes, Enefit Power can engage in other energy markets using the same capacities, potentially reducing costs for the reserve capacity service.
Who can I contact for more information about Enefit Power?
Danel Freiberg, Head of Treasury and Financial Risk Management at Eesti Energia AS, can be contacted directly at +372 5594 3838 or through his email.
