Annual report for 2025
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
In 2025, energy and electricity supply issues remained in the broader public spotlight, primarily due to the synchronisation of the Baltic electricity systems from the Russian system to the European system in February. After many years of preparation, the technical risks associated with this undertaking were well understood and therefore manageable. However, the wider security environment and the politicisation of the topic made the situation considerably more complex, requiring that potential human-induced incidents be taken just as seriously as technical risks.
We can now state with confidence that all stages of the synchronisation process — from planning and implementation to adaptation to the new system — have been successfully completed.
Energy is a sector where the decisions made 5–10 years ago determine how secure we feel today. In the same way, the decisions we make now will ensure peace of mind for both energy professionals and society as a whole for decades to come.
I would like to thank everyone who has helped keep the lights on and homes warm in Estonia, and wish us all the wisdom to make the right choices and the determination to carry them through.
From Elering’s mission to strategic goals
Elering’s vision is an Estonia where energy provides confidence, supports sustainable prosperity and enables new opportunities. Our strategy to 2035 defines the path towards a resilient, interconnected and future-ready Estonian energy system that supports society, the economy and the energy transition alike.
Climate change, geopolitical uncertainty and rapid technological development are reshaping the operating environment of energy systems, creating both new expectations and more complex risks. In this context, Elering must simultaneously ensure reliable day-to-day system operation, strengthen preparedness for disruptions, and lay the foundations for long-term sustainable development.
The strategy is therefore built around clear priorities that unite operational reliability, security,
efficient market functioning and customer focus into a single, coherent framework. Based on this, Elering has set four strategic objectives.
Security of electricity and gas supply
Security of electricity and gas supply
The first objective is to ensure the security of electricity and gas supply, focusing on network reliability, system operation capabilities, and the availability of sufficient generation and transmission capacity. For Elering, security of supply means the ability to guarantee energy for consumers even when market conditions, weather or the external environment are unfavourable.
Energy security
Energy security
The second strategic objective is energy security. In addition to technical reliability, this encompasses
crisis preparedness, infrastructure protection, cybersecurity, resilience against geopolitical risks, and deeper integration with the European energy system. Energy security means the ability to prevent, withstand and rapidly recover from both physical and digital threats, while developing the energy system in a way that reduces vulnerabilities over the long term.
Competitiveness of energy prices
Competitiveness of energy prices
The third strategic objective is the competitiveness of energy prices. Elering’s role is to develop network solutions, market rules and system services that support a well-functioning and efficient energy market while helping to keep costs under control over the long term. Transparent analysis and predictable price signals are essential prerequisites for investment decisions, security of supply and consumer confidence.
Customer excellence
Customer excellence
The fourth strategic objective is customer excellence, focused on providing clear, simple and reliable services for producers, consumers and market participants alike. This means transparent connection and tariff structures, smooth processes, and a partnership-based approach in which Elering acts not only as a transmission system operator but also as a collaborative and trusted system partner.
Overview of economic activity and financial results for 2025
Russia’s ongoing aggression against Ukraine continued to be a significant factor in 2025, influencing Estonia’s economic and security environment and shaping political decision-making. The security situation has a direct impact on investment decisions, risk assessments and preparedness measures at both the state and corporate level.
Higher inflation compared with the euro area implies a less favourable price dynamic for Estonia, which may affect competitiveness and potentially restrain investment and overall economic growth.
The general increase in price levels also has a significant impact on the cost of network investments. Rising investment costs are primarily driven by higher labour costs, increases in construction and material prices, and continued pressure on supply chains. In addition, limited competition among infrastructure construction providers further intensifies cost pressures, while demand for investments in the energy sector remains high. The combined effect of these factors contributes to increasing network investment costs.
Committed employees
The greatest asset in fulfilling Elering’s mission and achieving its vision is our people together with their knowledge and skills.
Maintaining relatively low staff turnover is important for Elering in order to preserve the high level of competence required
for core activities. To support this, we focus on employee well-being and satisfaction, professional development, and continuous improvement of working conditions.
Corporate governance
Corporate governance at Elering is based on the Commercial Code, the State Assets Act, Elering’s Articles of Association, and the Corporate Governance Recommendations (CGR) developed by the Estonian Financial Supervision and Resolution Authority and Nasdaq Tallinn Stock Exchange.
Elering consistently applies good corporate governance practices, develops them systematically, and ensures that corporate governance within the organisation remains at the highest standard at all times. Effective corporate governance provides a strong foundation for achieving strategic objectives and for fostering a unified and values- based organisational culture. The principles and practices of corporate governance at Elering are designed to guide all employees towards contributing collectively to the achievement of the company’s objectives.
Implementation of sustainability principles in Elering's activities
Elering’s activities contribute to a number of the United Nations Sustainable Development Goals (SDGs). However, considering the company’s role as the transmission system operator of Estonia’s electricity and gas systems and its vision — “An Estonia where energy creates a sense of security, sustainable prosperity and new opportunities” — the primary focus of Elering’s sustainability activities is on two goals: SDG 7 – Sustainable Energy and SDG 13 – Climate Action.
Elering has established principles of responsible business conduct that are integrated into the company’s management system and strategic planning. These principles have been approved by the Management Board and define Elering’s
role in society, its connection to the concept of responsible business conduct, and the ESG frameworks relevant to the company. The focus topics of responsible business conduct are divided into three areas: Environmental (E), Social (S) and Governance (G).
