Enefit Green Sees Significant Electricity Production Growth
Enefit Green's Electricity Generation Surges in January
Enefit Green has reported impressive electricity production figures for January, with a total of 247.0 GWh generated. This represents an exciting 30% increase compared to the same period last year. Despite wind conditions in Estonia and Lithuania being less favorable in January than in the previous year, the production boost was particularly influenced by the Sopi-Tootsi wind farm, which achieved its full operating capacity during the latter part of last year.
Wind Energy Output and Capacity Transformations
Out of the total production, wind energy contributed 235.1 GWh, marking a substantial increase of one-third from the previous year. Specifically, the Sopi-Tootsi wind farm accounted for 69.0 GWh of this output. Moreover, the Kelme I wind farm in Lithuania reached its first notable production level of 5.8 GWh by the end of January, showcasing the continued progress in renewable energy generation.
Wind Speed and Its Impact on Production
January recorded an average wind speed of 7.0 m/s across Enefit Green's portfolio, a slight decrease from last year's 7.5 m/s. This reduction had a marginal negative effect on production expectations, translating to about -10 GWh. Nonetheless, the introduction of new, more powerful wind turbines into the production portfolio last year allows the company to publish the new installed-capacity-weighted average wind speeds going forward.
Challenges in the Energy Market
The energy market posed unique challenges this January, with production curtailments resulting from disproportionately low electricity prices on the Finnish market costing the company approximately -12 GWh in potential production volume. Additionally, Enefit Green provided 13 GWh of system services to the transmission system operators (TSOs) in Lithuania and Estonia, contributing to an additional revenue source. The availability factor for the turbines in January was approximately -4 GWh, primarily affected by incidents related to turbine blade icing.
Impact of Asset Sales
Until the end of February, the comparison of energy production within the cogeneration segment reflects the impact of sold biomass-based cogeneration assets, with the sale completed in the first quarter of the previous year. The Iru cogeneration plant, currently the sole operational unit of this segment, generated 10.4 GWh of electricity in January, reflecting a robust increase of 19.4%. On the other hand, thermal energy production dipped slightly to 36.2 GWh, representing a -3.6% change. The plant's overall availability was recorded at 88.6% for January, hindered by two stoppages totaling around 3.5 days due to boiler grate damages caused by the metal waste content in municipal waste fuel.
Solar Energy Production Highlights
In the solar energy segment, production reached 1.2 GWh in January, signifying nearly a one-third increase year-on-year, supported by the additional capacity brought online throughout the previous year. Although solar energy accounted for a small proportion of Enefit Green's overall electricity output—about 0.5%—it still demonstrates the company's commitment to diversifying its energy generation portfolio.
Future Outlook and Market Trends
Looking forward, Innar Kaasik, Member of the Management Board and Head of Production at Enefit Green, remarked on the satisfactory production results despite some concerns. The oversupply of wind energy in the Finnish market may lead to production cutbacks due to low pricing, but there is optimism that consumer behavior will adapt positively to the affordable energy availability. The successful launch of the Kelme I wind farm and ongoing projects, including solar farms in Latvia and the Kelme II wind farm in Lithuania, are set to enhance the company’s operational capabilities.
Economic indicators show that average electricity prices in Enefit Green's home markets trended upward during January, which is encouraging. The wind discount in Estonia was around 13%. In Lithuania, the figure stood at approximately 18%, slightly above last year's level. Finnish wind discount remains high, hovering between 45-50%. These trends suggest a potential for greater profitability as the market evolves.
Frequently Asked Questions
What was Enefit Green's electricity production in January?
Enefit Green generated 247.0 GWh of electricity in January, a 30% increase from the previous year.
How did wind energy perform for Enefit Green in January?
Wind energy accounted for 235.1 GWh of the total production, a one-third increase compared to January of the previous year.
What challenges did Enefit Green face in January?
The company faced production curtailments due to low electricity prices in the Finnish market, which impacted production volume negatively.
How much solar energy did Enefit Green produce?
In January, Enefit Green produced 1.2 GWh of solar energy, highlighting a 30% increase from the previous year.
What is the outlook for Enefit Green's energy production?
Increased production, market trends, and ongoing projects position Enefit Green positively for future growth and profitability.
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