Estonian PM: New natgas power plants to be completed by 2029

  • 2025-01-14
  • BNS/TBT Staff

TALLINN - Responding to MPs' interpellations regarding the recovery and resilience plan and the use of oil shale, Estonian Prime Minister Kristen Michal said that oil shale will remain essential until 2029, by which time additional natural gas power plants are expected to be completed.

Riigikogu members Lauri Laats, Vadim Belobrovtsev, and Andrei Korobeinik asked the prime minister whether, given the current security situation, it is reasonable for Estonia to maintain the capacity to produce electricity from oil shale, if needed.

Michal explained that Estonia's electricity system must ensure at least 1,000 megawatts of reliable capacity until 2030. Most of this capacity is currently provided by oil shale power plants, which unfortunately are not in a competitive position in today's electricity market.

"The first opportunity to acquire new dispatchable power plants will be at the end of 2028, and by 2029, several gas power plants should be operational as a result of Elering's frequency reserve procurement. Until then, we are prepared to keep our oil shale power plants in the electricity system," Michal said.

The prime minister pointed out that Estonia's recovery and resilience plan was developed and negotiated with the European Commission in 2020-2021, with final agreements reached in the fall of 2021. The Center Party played a significant role in shaping the plan. At the start of negotiations, the government was led by the Center Party, and during the signing of the agreement, Center held both the environment minister and the minister of economic affairs and infrastructure positions.

"The recovery and resilience plan is a bilateral agreement approved by both the Republic of Estonia and the European Commission," Michal emphasized. He added that it is not possible to unilaterally withdraw from any agreed reform goals.

"Experience has shown that the European Commission does not allow changes to reform-related goals. Only investment-related targets may be adjusted," he said.

"Moreover, any unilateral changes to the agreement would significantly affect future funding period negotiations with the European Commission. In other words, if Estonia abandons key reform commitments, it will undermine its credibility as a negotiating partner," the prime minister noted.