TALLINN - Estonia's leading power companies - Eesti Energia, Eesti Gaas and Fortest Termest - signed a protocol on Sept. 29 to cooperate in the construction of a natural-gas-fueled heat and electric power plant for the city of Parnu.
The parties said they intended to carry out their plan - scheduled for launching in 2006 - depending on the subsequent analysis, Eesti Energia officials told the Baltic News Service.
In addition, Eesti Gaas said it would build a gas pipeline to Parnu in the fourth quarter of 2006.
"It is in our interest to ensure as large and stable a market as possible for the new network," said Board Chairman Aarne Saar.
Fortum Termest Chairman Risto Riekko said that in terms of energy supply a combined plant could be quite an attractive solution for Parnu.
Eesti Energia Chairman Gunnar Okk added that increasing the proportion of combined generation would ensure more effective use, as nearly all unconverted heat would be used for heating buildings or meeting industrial consumers' needs.
"From the point of view of supply security, it's certainly important to have a versatile and dispersed energy generation," Okk added.
The combined plant will make it possible to ensure at least a partial supply of power in the city if other sources fail.
Eesti Energia has been developing combined generation for some time. The company said the new power block at the Balti power plant must heat the city of Narva.
The company is also planning a new plant fueled by peat and wood chips to replace the outdated and environmentally hazardous one in Ahtm.
