Challenges in Reducing Electricity Costs
Marko Allikson, head of Baltic Energy Partners, emphasized that reducing electricity production costs lacks quick solutions. He explained that while direct intervention to subsidize costs could lower consumer prices, this approach risks undermining investment signals in flexibility and storage. Instead, Allikson highlighted the potential benefits of stronger network connections, such as between Estonia and Finland, and asked the question whether Estlink 3 could be completed before the currently planned year of 2035.
“For competitive long-term prices, no quick fixes exist. We need simultaneous investments in renewable energy, dispatchable and baseload capacities, consumption flexibility, and stronger cross-border connections. Speed in creating an attractive investment environment is critical, as Estonia’s decisions influence the entire regional electricity market,” said Allikson.
Renewable Energy and Grid Stability
Professor Ivo Palu from TalTech emphasized the increasing challenges renewable energy poses to grid reliability, given its dependency on weather conditions.
“The more renewable energy we add to the grid, the harder it becomes to ensure reliability,” Palu said.
He advocated for investments in storage technologies and grid modernization to balance production fluctuations and ensure energy availability even when wind and solar output is low.
Opportunities for Renewable Energy Export
Timo Tatar, head of Ignitis’ Estonia branch, underscored the importance of targeting renewable energy production at competitive prices for international markets.
“Renewable energy export is not just an opportunity but a strategic necessity. Efficient planning is needed to identify suitable locations and resolve connection issues,” Tatar said.
He added that higher electricity prices in the Baltics compared to the Nordics attract new renewable energy investments in the region. Every new wind or solar park reduces dependency on costlier fossil fuels, lowering average market prices while increasing price volatility. Long-term fixed-price electricity supply contracts can help consumers shield themselves from volatility and simultaneously support renewable energy producers in launching new projects.
Investments and Strategic Development
The panel stressed that energy system development requires long-term strategies, cross-border cooperation, and investments in storage technologies, renewable energy competitiveness, and grid connections.
“If new transmission lines are not planned, they won’t exist in 10 years,” warned Palu, emphasizing the need for a clear long-term vision."
Andres Maasing, Member of the Management Board and Chief Development Officer at Enefit Green, highlighted the importance of local energy production to reduce dependence on imports, pointing out that wind power, combined with storage technologies, offers competitive solutions for reducing fossil fuel reliance and meeting climate goals.
Gridraven’s Role in Reducing Power Prices
Gridraven’s innovative technology plays a critical role in addressing grid bottlenecks and reducing electricity prices by increasing the capacity of existing power lines without building new infrastructure. The company’s solution can increase transmission capacity by up to 30% annually, on average, and improve energy price stability while accelerating renewable energy projects.
In October 2024, Gridraven signed a pilot project agreement with Elering to implement its software-based solution across 5,000 km of Estonia’s power grid, covering 15,000 spans. This innovative approach enhances grid efficiency, supports renewable energy integration, and aims to reduce electricity prices while solving critical challenges in the energy network.
