The total cost of frequency reserves readiness in Estonia last year was 74 million euros, significantly lower than what critics feared during the market's initiation.
The cost of frequency reserves in Estonia for the previous year totaled 74 million euros, which is much less than what critics had predicted when the market was established. The frequency reserve market was initiated to ensure the stability of electricity supply in the country, especially given the vulnerabilities due to an aging infrastructure and external dependencies.
According to Erkki Sapp, a board member of Elering, the expenses incurred for these reserves were exceptionally low due to favorable market dynamics and regulatory measures put in place. The Competition Authority allowed for these costs to be covered from the excess revenue generated from overload charges, preventing a direct impact on consumers’ electricity bills, which has been a significant concern among the public.
This development reflects positively on the market's performance and its ability to adapt to changing conditions, ensuring that despite initial skepticism, Estonia can maintain a balanced and stable electricity supply without burdening consumers with high costs. The efficiency in managing these resources is crucial for the future as the demand for energy reliability continues to grow amid evolving energy landscapes.
