The reliability rating of Elering’s power grid in 2023 was 99.99 percent

According to the economic results of Elering for the previous year, the reliability of the Estonian electricity transmission network was close to the maximum.

Throughout the year, Elering’s transmission network transmitted more than 8.1 million megawatt-hours of electricity, ensuring the transmission of 99.99 percent of energy. “In 2023, we managed to maintain the historically low average level of non-transmitted energy in the transmission network over a ten-year period,” said Kalle Kilk, Chairman of the Management Board of Elering, and added that the methodological approach to improving the reliability of the power grid has been thoroughly efficient.

The gas network delivered all the gas that customers wanted to receive from the network, and the amount of gas not served was 0 megawatt-hours – the same as last year. Security of supply was ensured in 2023, despite the fact that the Balticconnector gas pipeline was damaged on 8 October 2023, cutting the connection between Estonia and Finland. The gas supply to Estonian consumers is still ensured through the connection between Estonia and Latvia. “We are always aware of potential damage and failure of infrastructure, and the energy system is built in such a way that in the event of an unexpected loss of a key element, security of supply is not disrupted,” explained Kilk.

One of the essential goals for the next year is disconnecting the electricity systems of the Baltic countries from the Russian electricity system and synchronization with the Continental European network. This is the most important development in the last 30 years in terms of energy security. “As a number of very important line extensions and two out of three synchronous compensators were completed during 2023, we have a high degree of confidence that we will complete the remaining projects with time to spare by the beginning of 2025, and we also have sufficient peace of mind in the meantime against the risk of a sudden unilateral separation of the Baltic countries by Russia,” said Kalle Kilk. The last major element – the Viru synchronous compensator – will be delivered by the constructor this spring, meaning that Estonia is significantly ahead compared to the other Baltic countries when it comes to the completion of these essential network components. The Baltic countries have agreed to complete the synchronization process in February 2025.

According to the goals set by the state, Estonia should have enough renewable electricity to cover local consumption on an annual basis by 2030. In order to ensure climate neutrality and affordable security of supply, Elering has prepared a specific plan in order to guarantee that plants generating electricity from cheaper sources of renewable energy are connected to the transmission network in a timely manner and affordable energy is available to consumers at all times. For this purpose, Elering has elaborated a concept of pre-developing the power grid. When implemented, this will render the connection of new production capacities to the network easier and faster, and allow connecting the new production capacities necessary for meeting the renewable energy goals for 2030 in a timely manner.

The CEO of Elering confirmed that Elering is prepared to commence the investments required for pre-developing the power grid already in 2025, provided that the Riigikogu passes the amendments to legislation required for implementing Elering’s concept for pre-developing the power grid in 2024. “In order to connect a number of plants in a high volume in the last years of the decade, work on building the required reinforcements in the transmission network must begin in 2025 at the latest. The fundamental logic of connecting to the power grid must be changed for this purpose, and preliminary work must be performed on the network years before any specific persons wishing to connect to the network approach Elering with their connection application,” explained Kilk.

It is estimated that investments in the amount of 300 million euros must be made in the network in order to connect the necessary power plants to the network. The majority of this reinforcement is related to the existing 110-kilovolt network, with most of the production capacities to be connected by 2030 subject to join this network. “Although implementing the new concept will increase the expenses on network fees incurred by an average private electricity consumer by roughly five euros per year, the higher proportion of renewable energy at a more favorable price will, in total, decrease consumer spending on electricity,” confirmed Kilk.

According to the data of the audited financial results, Elering’s revenue decreased by 36 percent compared to the previous year (254.8 million euros; 387 million in 2022), while expenses decreased by 40 percent to 226.5 million euros (378.2 million in 2022). Operating profit for the financial year amounted to 28.3 million euros (2022: 19.9 million). Elering invested 183.8 million euros in fixed assets during the year (2022: 118.8), of which 42.3 million euros were invested in maintaining the reliability of the electricity and gas networks (2022: 16.4). Investments in the synchronization project and the projects for reinforcing connections for the purpose of improving the capacity for renewable energy connections are ongoing. Elering’s assets as of the end of the reporting year were 1.468 billion euros (2022: 1.461), equity stood at 414 million euros (2022: 399.5), and the volume of debt liabilities was 77.5 million euros (2022: 314).

Elering’s annual report for 2023 is available at https://elering.ee/en/annual-reports.