Annual report for 2024
Elering is an independent and self-sufficient Estonian electricity and gas system operator whose main function is to ensure high-quality energy supply to Estonian consumers at all times.
Address by the Chairman of the Management Board
The process with the greatest impact on Estonia’s energy security in recent decades – synchronisation with the Continental Europe Synchronous Area – reached the expected stage by the end of 2024, where we were ready to disconnect the Baltic power system from the Russian frequency band and connect it to the Continental Europe Synchronous Area in February 2025. During the large-scale process, the Baltic electricity networks were strengthened, an additional connection was established between Lithuania and Poland, and the necessary information and control systems were developed. In addition, 2024 brought a resolution to two significant disruptions – we successfully completed the repairs of the Balticconnector gas pipeline and the Estlink 2 submarine cable, which in both cases was complex and time-consuming. Overall, the reliability of electricity and gas networks remained at a high level in 2024, although there were isolated power outages. The power system as a whole continues to undergo major changes, and with a view to ensuring future security of supply, we focused on measures to ensure controllable capacities and adjusted the development plans for the electricity and gas transmission system. Let’s continue to keep the lights on in Estonia and our homes warm!
From Elering’s mission to strategic goals
Energia kättesaadavust peetakse ühiskonnas sageli enesestmõistetavaks, kuid elektrikatkestused võivad häirida suure osa Eesti elanikkonna igapäevaelu ning elutähtsate teenuste toimimist. Elering, Eesti elektri- ja gaasisüsteemihaldur, seisab selle eest, et tuled põleksid ja toad püsiksid soojad – igal ajal ja igas olukorras.
The availability of energy is often taken for granted in society, but power outages can disrupt the daily lives of a large part of the Estonian population and the functioning of vital services. Elering, the Estonian electricity and gas system operator, ensures that the lights stay on and the rooms warm – at all times and in all situations.
To implement Elering’s mission and vision, it is important to find a balance between the interests of different parties – Estonian society, clients, employees, and the owner (the Estonian State). Based on this principle, we have defined six strategic goals that guide our activities and ensure security of supply and the efficient functioning of the system.
Ensure the security of electricity and gas supply at all times
Ensure the security of electricity and gas supply at all times
The value chain of security of supply is based on four pillars: management, network, system and digital capabilities. Their effective management and continuous development are critical to ensuring a reliable and stable energy supply. Our goal is therefore to maintain and develop a well-functioning electricity and gas transmission system that meets both current and future needs.
Ensure electricity and gas price that supports the competitiveness of the Estonian economy
Ensure electricity and gas price that supports the competitiveness of the Estonian economy
As a system operator of the electricity and gas network, we can contribute to the price of electricity and gas through three parameters.
Achieving climate neutrality in Estonia
Achieving climate neutrality in Estonia
Estonia has set itself an ambitious goal that from 2030, the total summary annual end consumption of electricity must be covered by renewable energy. To achieve this goal, it must be possible to connect at least 5,500 MW of generation-oriented capacity to the Estonian electricity transmission system.
Dedicated employees
Dedicated employees
The high demand for talent in the energy sector, low overall unemployment rates, and payroll pressures are making it increasingly difficult to retain talented people. In order to maintain a strong team and achieve the ambitious goals for the next five years, a strong team spirit and a good work culture are critical. Dedicated employees are happier in their work, more productive, and able to make a greater contribution to fulfilling Elering’s mission.
Customer satisfaction
Customer satisfaction
Elering has four main service segments: electricity and gas network service, connection service to the electricity and gas system, electricity and gas balancing service, and renewable energy subsidy payment agency. As the energy system and markets are undergoing major changes due to climate and geopolitical challenges, Elering’s success is closely linked to customer satisfaction. In particular, new clients to the grid connection, including wind and solar energy producers, expect Elering to operate quickly and efficiently.
Creating economic value added
Creating economic value added
Every owner expects that the capital invested in the company will generate value as intended. To assess this, we follow the economic value added (EVA) methodology, which compares earned profits with the expected profits of the owners.
Overview of economic activity and financial results for 2024
Russia’s aggression against Ukraine has also been an important factor in 2024, shaping Estonia’s economic and political environment. The aggression has had a significant impact on the prices of raw material, gross domestic product, interest rates, and inflation. Russia’s aggression against Ukraine is reducing demand and increasing inflation worldwide. Estonia is significantly affected by it due to its geopolitical location.
Paradoxically, the contradictory situation on the labour market continues, where on the one hand it is difficult to find qualified labour, and on the other hand the unemployment rate is on an upward trend.
Price increases affect wage costs, energy costs, including network losses, and other services, and have a significant impact on the cost of investments.
Employee engagement and motivation action plan “Our Elering”
Elering’s greatest asset in implementing its mission and achieving its vision is our people, with their knowledge and skills.
It is important for us to keep employee turnover low in order to maintain the high level of competence necessary for our core business. In 2024, voluntary turnover decreased further, reaching 4.9%.
Corporate governance
Elering’s corporate governance is based on the Commercial Code, the State Assets Act, Elering’s Articles of Association, and the Good Corporate Governance Practices (GCGP) compiled by the Financial Supervision and Resolution Authority and the OMX Tallinn Stock Exchange.
Elering is committed to complying with good corporate governance practices and is focused on continuous improvement in this area. High quality corporate governance is the basis for achieving strategic goals and shaping organisational culture. The practice and functioning of corporate governance have been implemented at Elering in such a way that all employees work towards achieving the goals of the company.
Compliance with the principles of responsibility in Elering’s activities
Elering’s activities have a significant impact on almost all of the UN’s global Sustainable Development Goals, but due to Elering’s core business objective of ensuring security of supply in a climate-neutral manner, our main focus is on two goals: affordable and clean energy, and climate action.
Elering has developed principles of corporate social responsibility, which are integrated into the company’s management and provide input into strategy development.
These principles have been approved by the company’s management board, ensuring that responsibility is an integral part of Elering’s operations and long-term goals.
