In cooperation with Lietuvos Energija, Eesti Energia places Estlink cable capacity at disposal of NordPool SPOT power exchange

Eesti Energia and Lietuvos Energija are cooperatively giving the last unallocated parts of the Estlink submarine power cable into the use of NordPool SPOT power exchange. Along with the capacities transferred in March of this year by Eesti Energia, the Estlink undersea cable is fully – the entire 350 MW capacity – available to market participants.

"Price pressure from Latvia and Lithuania impacts the price on Estonia's open market and during the short lifetime of the Estonian bidding area we have seen a number of spikes in the price. The additional capacity granted to the market increases market liquidity and the extreme price jumps will become much less likely," said Eesti Energia's director of energy trading Margus Vals.

The additional Estlink capacity granted to the market make the Estonian electricity market deeper and more stable, which ultimately will bring the best possible price to Estonian open market consumers. The undersea cable connecting energy systems can be used on equal grounds by all market participants in Estonia and the Nordics.

Vals said that the capacities available via Estlink significantly outstrip consumption on the Estonian open market, but to ensure long-term price stability, it will be necessary to develop a common power market in the Baltic States. "To ease the fluctuation on the market it will be necessary to bring the creation of a common power market to completion; NordPool SPOT must expand from Estonia to Latvia and Lithuania. The strongest step taken to preclude price fluctuations will be the laying of the Estlink 2 cable. The Estlink 2 undersea cable will integrate the Baltic countries with the Nordic electricity market with finality," said Vals.

The volume of Estonian open market, depending on the season, is 150 - 250 MW. The volume of the Estlink undersea cable is 350 MW, which is significantly more than the demand from Estonian eligible consumers.

The Estlink undersea cable connects the Nordic and Baltic power systems. The stakeholders in the Estlink undersea cable are Eesti Energia, Latvenergo, Lietuvos Energija, Pohjolan Voima and Helsingin Energia. Eesti Energia is the largest stakeholder in the Estlink 1 DC cable. Eesti Energia fully transferred its rights to use the Estlink cable to Nord Pool Spot power exchange in March of this year.

Marina Bachmann
Press Officer
Eesti Energia AS
Tel: 71 51 218
GSM: 56 456 600