The 11th power unit, which is capable of providing the cheapest heat supply, has been repaired at the Baltic power plant in Narva. 7 million euros were spent on this. However, the launch of the unit is postponed, as electricity prices on the market are too low.
“The overhaul of the 11th power unit of the Baltic power plant Eesti Energia has been successfully completed – and it is reconnected to the grid. This power unit can produce, along with electricity, relatively cheap heat energy for heating houses in Narva, but so far there are no conditions for its commissioning,”the Northern Lights newspaper writes.
According to him, the launch of the 11th power unit will begin when the exchange price of electricity rises, since generating electricity by burning shale and wood chips is quite expensive, including due to the payment of quotas for carbon dioxide emissions into the atmosphere.
“That is, the operation of the unit will become profitable on days when electricity is expensive, but it gives Narva consumers cheaper heat energy for heating and hot water supply of houses,” writes Northern Lights.
Enefit Power Board member Alexander Efremov said that the 11th unit is ready for operation and put into reserve, but the market price of electricity is low.
The 11th power unit was repaired for more than 7 million euros, and it remains the only one that works on shale. Narva’s heat supply is now provided by a gas power unit, whose costs are among the highest in the country.
“For Narva consumers, the final marginal price for heat from natural gas, which includes the costs of the grid company for the delivery of heat to homes, is currently about 130 euros per megawatt-hour, including turnover tax. For comparison: in the case of heat generation during the generation of electricity from slate and wood chips, the marginal price of heat energy in Narva is about 90 euros per megawatt-hour,” the Northern Lights added, adding that, for example, in January of this year, the 11th power unit of the Baltic power plant provided 71% of the heat supply for Narva.
According to the NordPool exchange, the average monthly price of electricity in Estonia in December is about 85 euros per MWh, while in the first month of the year it exceeded 92 euros, and in February — 151 euros.