Enefit Industry AS, a subsidiary of the Estonian state-owned energy company Eesti Energia, has announced a tender for the construction of a 100 MW gas-fired combined cycle power plant as part of the Baltic Power Plant complex in Narva. According to Enefit Industry, it intends to use this power plant in the reserve capacity market to balance the power grid.
The company plans to sign a turnkey contract for the construction of the facility. The value of the state contract is estimated at €100 million, and construction is scheduled for completion in 2028.
“The power plant is designed to generate heat and electricity in cogeneration mode and to provide reserve capacity (….) It will operate on gas piston engine technology with a capacity of 4 to 13 MW. It is expected that the plant will run mainly on natural gas or biomethane and should already be capable of using up to 25% hydrogen as fuel,” the statement said.
It is noted that during the gas station’s operating hours, residual heat can be supplied to the Narva heating network.
“The situation on both the frequency markets and the day-ahead electricity market clearly shows that Estonia needs new flexible and dispatchable generation capacity. The advantage of an autonomous gas-fired power plant is its quick start-up, which helps to respond quickly when electricity prices are high,” said Enefit Industry CEO Lauri Karp, quoted in the report.
The preliminary qualification stage of the tender will last until May 29, and Enefit Industry expects to receive preliminary applications by the end of June.
The company emphasizes that the tender is a prerequisite for participation in the procurement of frequency reserve announced by the data transmission system operator Elering.
As reported, the Estonian energy company Eesti Energia has reorganized and spun off its shale extraction, processing, and liquid fuel production businesses into a separate entity, Enefit Industry AS.
“From April 1, the power plants will continue to operate as Enefit Power OU, while the liquid fuel production plants and extraction divisions will operate as Enefit Industry AS,” Eesti Energia said.
All shale-fired thermal power plants within the group perform a reserve function.
