Lithuanian energy group's Estonian arm weighs gas-fired power plant near Tartu

The Estonian subsidiary of Lithuanian energy group Ignitis is preparing for the possible construction of a gas-fired power plant in Kastre Municipality, Tartu County. The plant could have a capacity of up to 200 megawatts. The interest is driven by plans from Elering, Estonia's transmission system operator, to procure capacity that would allow the electricity system to be restarted after a blackout.

Ignitis Estonia CEO Timo Tatar explained that such a plant must first of all be ready to start and run independently whenever Elering needs it. At other times it could take part in other electricity markets and earn extra revenue. Elering said its current plans call for the procurement to be announced toward the end of this year.

Why Uniküla

The chosen location is Uniküla. Tatar said it is attractive because of its proximity to Elering's natural gas network and strong electricity grid connections. Kastre Mayor Priit Lomp added that a main gas transmission pipeline and a 330-kilovolt power transmission network are nearby. According to him, southern Estonia has only three technically suitable sites: in Jõgeva, Tartu and Kastre municipalities.

Tatar acknowledged it is still unclear whether the plant's gas would arrive by LNG tanker or from a source such as Norway.

Planning process

The company has applied to Kastre Municipality to start a detailed spatial plan. Tatar stressed that this is not a final investment decision: the company is preparing so that it can submit a bid if Elering's procurement terms prove attractive. Ignitis is also looking at other plots of land, though it is too early to discuss them.

The municipality has not yet started processing the application, as Ignitis is not the only company interested in building a gas-fired plant in the area. The municipality first sent the proposal to the Ministry of Economic Affairs and Communications to check whether national planning documents would rule out the project. Under the municipality's comprehensive plan, the site is classed as valuable agricultural land, but the plan allows projects of significant public interest, and Lomp believes electricity generation capacity qualifies.

Building a gas-fired plant of up to 200 megawatts is estimated to cost around €200 million.