BAKU, Azerbaijan, June 20. The Government of the Republic of Estonia has approved an amendment to the national regulation that defines the conditions for providing island operation capability services, Trend reports.
This amendment supports Estonia’s broader goal of ensuring the independent functionality of the country’s electricity system.
“Estonia’s electricity system is well-connected to external networks, but we must also be prepared to operate independently if necessary. The regulation approved today creates the legal framework needed to implement the islanding measure,” said Minister of Energy and Environment Andres Sutt.
The revised directive delineates the technical specifications
for electricity generators that furnish adjustable generation
capacity to bolster Estonia’s grid during exigent
circumstances—termed as island operation capability. This aligns
with the latest revisions to the Electricity Market Act, which
established a systematic framework for the provision of such
services.
The initiative empowers Elering AS, the transmission system
operator of Estonia, to strategically acquire and fund adequate
generation capacity to maintain grid stability. Considering that
Estonia's manageable capacity is predominantly dependent on oil
shale—which has lost its competitive edge in open markets—the
recent initiative facilitates fiscal backing to sustain these
critical ancillary resources.
In December 2024, Elering estimated that Estonia would require a minimum of 950 MW of controllable capacity by 2026 to meet islanding needs. However, this figure will be reviewed annually and may change based on projected peak demand.
“This is a critical investment in our energy security. The key requirement is that electricity producers must be able to deliver continuous output for ten days in the event of an emergency,” added the minister.
The estimated cost of the islanding service during the drafting of the legislation—developed in consultation with stakeholders, including major producer Enefit Power—was approximately 34 million euros per year. For consumers, this is projected to increase electricity bills by around 2.4 percent, or 0.0042 euros per kilowatt-hour. Final costs will be determined through annual competitive bidding.
The procurement process, managed by Elering, will be open to all Estonian electricity producers who meet criteria approved by the Competition Authority. The first round of tenders is expected to launch this summer, with results announced by the end of the year, including the final cost to consumers.
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