Elering is the backbone of the Estonian electricity system
Transmission System Operator Elering manages the Estonian electricity system in real time. Elering is responsible for the system’s operation and ensures the supply of high-quality electricity to consumers at all times. We create the conditions needed for the electricity market to function and we build cross-border electricity interconnections so that electricity can move freely between neighbouring systems and markets.
Following a public procurement process, Elering signed an agreement with Eltel Networks AS to purchase the maintenance works of the natural gas transmission network and will begin to organise maintenance of the gas network with the help...
Elering to complete the reform of gas network maintenance
Following a public procurement process, Elering signed an agreement with Eltel Networks AS to purchase the maintenance works of the natural gas transmission network and will begin to organise maintenance of the gas network with the help of an external partner, in line with what is already being done in the electricity network.
According to Elering’s Chairman of the Board, Taavi Veskimägi, the kind of working arrangement in which Elering will remain the contractor and supervisor of the maintenance works and a sub-contractor chosen with a procurement will carry out the work is the last substantial step on harmonising the general management principles of the gas system with successful practice in the electricity network. “It is a pleasure to state that the maintenance partner of the gas network is Eltel, who has proved to be a capable service provider on managing the electricity network over the years,” he said.
The estimated cost of gas network maintenance is 2.4 million euros per year. The maintenance agreement was signed for four years with the possibility of extending it for a period of another two years.
In addition to maintenance, part of the agreement involves small investments or repair works like exchanging lengths of pipes and insulation, installing repair clamps and works in gas stations. That will reduce the capacities of investment procurements. Also, the maintenance partner will have additional activities in relation to the construction of the Balticconnector gas systems.
The winner of the procurement, Eltel Networks, has to carry out trials in the gas network from the end of March until the middle of April, the successful execution of which will enable it to start implementing contractual work from the beginning of May.
The gas transmission network managed by Elering consists of an 885 km gas transmission pipeline, 36 gas distribution stations, three gas measuring stations and auxiliary equipment.
Elering earned 37.8 million euros of operating profit in 2016
According to the audited annual report 2016 Elering earned 37.8 million euros of operating profit. Aside from the extraordinary income in 2015 (contractual penalty from the builder of the emergency power plants and extraordinary profit from acquisition of the gas transmission network) the operating profit in 2016 was higher than in 2015.
According to Taavi Veskimägi, Chairman of the Management Board, the reliability in the transmission network grew significantly in 2016. „Reliability indicators for the EstLink 1 and 2 connections between Estonia and Finland were record high 98 and 96 per cent. Internal outages fell two times compared to the average of last five years and consumers were left without electricity only in the extent of annual electricity consumption of a few private households,“ he said.
Elering’s revenue amounted up to 135.9 million euros in 2016: 126.0 million euros from electricity and 9.9 million euros from gas. Compared to 2015, the revenue increased by 3.8 percent.
The operational, labour, and financial costs were approximately the same as the year before, but the biggest item of expenditure – goods, raw materials, and services – increased by around six million euros amounting to 46.7 million, mainly in relation to the growth in the volume of purchased balance energy.
Thereat operating profit of 37.8 million euros Elering earned 18.7 million euros net profit.
At the turn of the year, the volume of the company’s assets amounted to 903.7 million, equity capital to 349.1 million, and the volume of loan commitment was 367.4 million euros.
Elering is an independent electricity and gas system operator, whose main duty is to guarantee high-quality electricity supply to Estonian consumers at all times. To do that, the company operates, maintains, and develops the national and cross-border energy infrastructures. With its activities, Elering ensures the conditions for the functioning of the energy market and development of the economy.
More information on Elering’s financial performance of 2016 is available here.
Elering awaits student submissions for scholarship
Elering is announcing a scholarship of 10,000 euros for energy and IT students with the objective of supporting master’s and doctoral students in researching energy topics that are relevant today.
The number of topics on this year’s sixth scholarship competition has expanded and the fields of smart grid and data exchange have been added to that of electricity, which means that we are also seeking applications from IT students. “The widespread deployment of information and communication technologies offers a choice for the energy system operator of how to manage the ever-changing and significantly smarter energy system,” commented Elering’s Strategy Manager Kalle Kukk. In order to restructure the energy system, Elering has created a smart grid platform that can increase the efficiency of producing, transporting and consuming energy by means of energy consumption and other data.
Research topics for applying to the scholarship are:
1. Electricity network development on probability conditions
2. The impact of distributed energy producers on aggregated bus load
3. Constructing a practical tool to forecast electricity load
4. Correlation analysis of the production of wind parks and the capacity of transmission lines (based on statistics and measurements)
5. The rate of usability and emergency of the power plants in the Baltic Sea region (using fast market messages of electricity exchange as a source of information)
6. Analysis of large amounts of data and technical solutions for exchanging them (based on Estfeed, Elering’s smart grid platform)
7. Regulations and standards of data exchange, cyber security and data protection related to energy
Elering is awarding up to three grants worth 10,000 euros each. The deadline for the submission of applications is 31 March.
The energy scholarship programme is part of Elering’s social responsibility programme, the goals of which are the promotion of energy-related education, an overall increase in social awareness on energy-related topics, and supporting scientific and development projects.
Further information on the terms and conditions of the scholarship can be found on Elering’s website http://elering.ee/elering-scholarship-programme/.
Electricity price was at an even level from Finland to Lithuania in February
According to reports from the Nord Pool Nordic electricity exchange, the electricity exchange prices in the Finnish and Baltic price areas were at an even level in February, remaining between 35.07 and 36.45 euros per megawatt-hour.
The average electricity price in the Estonian price area increased 5.6 per cent to 35.13 euros from 33.27 euros per megawatt-hour in January. The Nord Pool system price increased by 4.8 per cent over the month, reaching 32.28 euros per megawatt-hour.
Power flows between Estonia and Finland were directed to Estonia for 58 per cent of the 672 hours last month and to Finland for 30 per cent of the hours. Nearly one third of the full capacity given to the market was used and the whole capacity given to the market was used for 11 hours. Power flows between Estonia and Latvia were directed from Estonia to Latvia for almost 88 per cent of the hours. A little over half of the full capacity given to the market was used and the whole capacity was used for 50 hours.
In February, Elering saw profits of almost half a million euros or 478,916 euros from cross-border transmission capacity distribution.
Carbon dioxide emission quota prices, which influence the price of electricity, remained between 4.89 and 5.38 euros per tonne in February. In January, the trading range was between 4.69 and 6.11 euros per tonne.
According to transactions on the last trading day of the month, the average electricity price is expected to be 33.5 euros per megawatt-hour in March. The February price was quite accurately predicted by transactions – the price was cheaper than expected by two per cent.
Estonian electricity production increased in January, though consumption decreased
Estonian electricity production increased by five per cent this January in a year-on-year comparison, reaching 1,140 gigawatt-hours.
Production from renewable resources grew by 27 per cent and production from wind energy increased by almost a half. The amount of electricity produced from biomass increased by one tenth and hydro energy production grew by 83 per cent. Production from fossil fuels increased by two per cent.
In Estonia, domestic electricity consumption decreased by seven per cent to 844 gigawatt-hours. The fall in consumption was influenced by this January being warmer than January last year. Electricity produced from renewable resources covered 14.8 per cent of domestic power consumption.
Electricity production exceeded consumption in January by 35 per cent, making the surplus of electricity balance 296 gigawatt-hours. A year ago, the surplus was 183 gigawatt-hours.
In Latvia, electricity production increased by 15 per cent in January. Production increased due to hydro energy, since this January had an abundant supply of water compared to the same month last year. Electricity consumption decreased by four per cent in Latvia, from 725 gigawatt-hours to 695 gigawatt-hours, taking the electricity balance of Latvia into surplus by 45 gigawatt-hours.
In Lithuania, domestic production decreased by as much as 21 per cent, while consumption increased by two per cent. Production and consumption totalled 206 and 980 gigawatt-hours, respectively.
In January, the gross electricity production of the Baltic states increased by five per cent, amounting to 2,086 gigawatt-hours in a year-on-year comparison. By contrast, electricity consumption decreased by three percent to 2,519 gigawatt-hours. The Baltics as a whole was in deficiency by 434 gigawatt-hours in January, though the deficiency decreased by 28 per cent in a year-on-year comparison.
In the Nordic countries, production decreased by five per cent in comparison with January 2016 – 11 per cent in Denmark and seven per cent in Norway and Finland. Swedish electricity production did not change in a year-on-year comparison. Electricity consumption fell by seven per cent in the Nordic countries as a whole. The gross balance of production and consumption in the Nordic countries was in surplus by 905 gigawatt-hours.