Enefit Power to start using shale oil in reserve boilerhouse at Narva's Balti Power Plant
Estonian company Enefit Power may begin burning shale oil at its Balti Power Plant from 1 November if Unit 11 is out of service or uncompetitive on the electricity market. It cited gas supply risks and the affordability of district heating in Narva.
Estonian energy company Enefit Power will begin using shale oil at its Balti Power Plant in Narva from Sunday, 1 November, if the plant's Unit 11 is out of service or uncompetitive on the electricity market. The oil will be burned in the plant's reserve boilerhouse. The decision affects heating for Narva residents and stems from concerns over natural gas supplies this winter.
Company CEO Raine Pajo informed Environmental Board Director Rainer Vakra and Climate Minister Erkki Keldo of the Reform Party about the plan. It relies on an exemption the board granted on 21 October. The order allows preventive use of shale oil if natural gas supplies risk disruption or restriction, or if district heating risks becoming unaffordable for Narva residents.
Price and supply concerns
In his letter, Pajo said price volatility, rising winter demand and the risk of further supply disruptions threatened both gas security and the affordability of district heating. He warned that heating could become unaffordable even without an actual interruption in gas deliveries.
The CEO pointed to European gas storage levels that are lower than usual, high natural gas prices and winter supply risks. He also cited the ongoing Middle East crisis, which pushed European gas prices to a four-year high in October.
Temporary and preventive
Pajo described the step as temporary and preventive, saying it would reduce Narva's dependence on volatile imported gas and help keep district heating affordable. The amount of shale oil used, he added, would depend on gas supply conditions and the city's heating demand.
Enefit Power said the gas market situation and the vulnerability of Narva residents justified using shale oil from 1 November if Unit 11 was uncompetitive or out of service. It has formally notified the Environmental Board of its plans.
