Increasing connection capacity during consumption
Session: 15th Riigikogu, 5th sitting, press briefing
Date: 2025-04-16 15:12
Participating Politicians:
Total Speeches: 10
Membership: 15
Agenda Duration: 14m
AI Summaries: 10/10 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
Member of the Riigikogu Lauri Laats posed a question to the Minister of Energy and Environment Andres Sutt regarding the need to increase grid capacity for connection, focusing on the problems of green energy volatility and battery storage. Laats highlighted that the government’s green target (to produce as much green energy as is consumed by 2030) is hampered by insufficient grid capacity, particularly on the consumption side, which makes battery bank investments economically unreasonable. He drew attention to a market anomaly where Estonia currently produces significantly more green energy than it consumes, selling it cheaply to its neighbors, which does not bring sufficient revenue to the economy. Laats also asked whether the projected electricity end price of €150 per MWh for 2035 is competitive for Estonia’s economic environment.
Minister Sutt acknowledged that grid capacity is the primary bottleneck, stemming from the grid's outdated structure (centralized production, distributed consumption). He referred to bill 556, currently being debated in the Riigikogu in its second reading, which should harmonize and clarify grid charges for those connecting to Elering's core grid. Sutt also mentioned initiating a study with the Competition Authority regarding Elektrilevi's distribution grid to plan necessary investments. Regarding the price forecast, the Minister explained that €150/MWh is the end price for the consumer, including all fees and taxes, and emphasized that without renewable energy investments, the price would be even higher. Finally, Sutt stressed the importance of developing connections (such as the fourth connection to Latvia) and long-term power purchase agreements (PPAs) to stabilize the market and mitigate risks.
Decisions Made 1
Decisions were not made.
Most Active Speaker
Lauri Laats was the most active speaker, presenting three detailed questions to the energy minister regarding grid capacity, the economic viability of green energy investments, and market anomalies.
Esimees Lauri Hussar
AI Summary
Riigikogu member Lauri Laats asks the Minister of Energy and the Environment, Andres Sutt, how to increase the throughput capacity of connections for consumption.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats notes that although the government aims by 2030 to produce in Estonia as much green energy as we consume, building the system requires multibillion-dollar investments, and the volatility of green energy and the installation of battery banks are not economically worthwhile due to the grid's lack of capacity, and he asks in what way and how quickly the government plans to solve this problem.
Energeetika- ja keskkonnaminister Andres Sutt
AI Summary
The main bottleneck is the network's transmission capacity, and to address this there is Bill No. 556 in the Estonian Parliament, which harmonizes network tariffs and explains the allocation of charges for Elering's transmission grid and for connecting customers; at the same time, long-term planning of Elektrilevi's distribution-network investments in cooperation with the Competition Authority is needed, because distributed generation requires upgrading the grids, and in Estonia's Nord Pool region, with favorable solar and wind conditions, prices are indeed among the lowest.
Esimees Lauri Hussar
AI Summary
The chairman thanked and invited Lauri Laatsat to present a clarifying question.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats notes that in Estonia the electricity price for consumers is low, which is somewhat beneficial, but unsuitable for invested companies; in the Nord Pool market there is currently an oversupply, and part of the electricity comes cheaply via Latvia, which creates anomalies and which the trajectory of the green transition intensifies, and he offers an alternative for investments in the oil shale industry to lower the price of electricity, referring to ENMAK's 2030 forecast of 150 euros per megawatt-hour and asking whether this is competitive and acceptable for consumers.
Energeetika- ja keskkonnaminister Andres Sutt
AI Summary
Energy and Environment Minister Andres Sutt said that to improve electricity prices two solutions must be pursued: first, to use the grid in both directions and add battery parks to solar parks, which requires grid upgrades, and second, to strengthen connections between Estonia and Latvia to increase export opportunities and competitiveness, and although the 2035 final price may be around 150 euros per megawatt-hour, it depends on the accuracy of many assumptions.
Esimees Lauri Hussar
AI Summary
The chairman, Lauri Hussar, thanked and announced that there were no other contenders, and that Lauri Laats would also get a third chance.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats emphasizes that energy must be the engine of the economy and affordable, and attention should be directed to other sectors of the economy, but the oversupply of green energy and low demand and regional targets (Latvia and Lithuania by 2035) create risks that must be mitigated.
Energeetika- ja keskkonnaminister Andres Sutt
AI Summary
Andres Sutt emphasized that in Estonia electricity exports to Finland and Latvia are currently adequate and depend on interconnections, because without them the price would be zero or negative, and the interconnections are necessary; during daytime hours it is possible to sell electricity at a higher price (>100 €/MWh) through arbitrage together with solar parks and batteries, which helps to harmonize the price; if there is a shortage of sun, we need more wind energy, and the development of long-term power purchase agreements (PPAs) is important, which protects both the producer and the buyer, although the market is in its infancy, but the potential is large.
Esimees Lauri Hussar
AI Summary
The chair, Lauri Hussar, thanks and announces that he will conclude the discussion of today's second question.