Mar 3 • 05:39 UTC 🇪🇪 Estonia ERR

Revamping Oil Shale Power Plants is Currently Cheaper than Establishing Gas Power Plants

Revamping existing oil shale power plants is presently more cost-effective than constructing new gas power plants in Estonia, according to government estimates.

The Estonian government plans to announce a tender for new gas power plants in two to three years, with a goal of adding 1,000 megawatts of controllable electricity capacity within the next decade. However, the energy company Elering estimates that it is currently cheaper to maintain older oil shale power plants than to invest in new gas plants. As electricity consumption in Estonia continues to rise annually, aging Soviet-era oil shale plants are increasingly becoming more expensive to operate, prompting the government's plan to replace them within ten years.

Despite this, the current cost of maintaining the existing oil shale plants is still lower than the cost of developing new gas power plants. Karin Maria Lehtmets from the Ministry of Climate emphasized that maintaining existing plants is more economical in the short term, but this situation will change as the old Narva power plants, which are extremely outdated, will require more extensive and costly maintenance in the coming years. There is an urgent need for Estonia to address its energy infrastructure, particularly as demand grows and the operational costs of outdated facilities rise.

This situation reveals a significant challenge for Estonia's energy policy as the nation must balance the immediate cost advantages of older technologies with the long-term benefits of modern infrastructure that can meet future energy demands sustainably. With energy consumption projected to keep increasing, transitioning to more sustainable energy sources will be crucial for Estonia's energy security and economic stability.

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