Security of Supply reports

Compared to last year, Estonia’s short-term resource adequacy is significantly higher. The generation capacities and national connections in the region are in good shape, allowing the market to direct electricity to where it is most needed at any given time. 

The electrification of different sectors has led to a rapid increase in electricity consumption in Estonia and across Europe. In Estonia, the growth is mainly due to electric transport and the replacement of fossil fuels with electricity in heat generation. Over the next 10 years, Estonia’s annual electricity consumption will increase by nearly 2 TWh, and peak demand will grow by nearly 450 MW. The rapid growth in electricity consumption across Europe has created a situation where long-term resource adequacy analyses have identified omissions in many countries that need to be addressed immediately. Elering has taken the first steps in this direction and a study has been commissioned to identify the most suitable type of capacity mechanism for Estonia. The result of the study indicated that the most economically efficient and least market-distorting option for Estonia is a strategic reserve. A strategic reserve concept document was prepared on the basis of the results of the study, and studying the impact of the mechanism on neighboring markets has started.