Next year, Estonia’s energy group Eesti Energia would like to launch the country’s first pilot project for a large-scale storage device to make sure the solution is suitable both in Estonia and the company's other retail markets. An international procurement was announced to find the sto Contact online >>
Next year, Estonia’s energy group Eesti Energia would like to launch the country’s first pilot project for a large-scale storage device to make sure the solution is suitable both in Estonia and the company''s other retail markets. An international procurement was announced to find the storage device.
According to Kristjan Kuhi, Member of the Management Board of Eesti Energia, the key to a fast and affordable green transition that ensures self-sufficiency in energy is electrification based on renewable energy, in which energy storage plays a major part.
“The quickest way to ensure affordable electricity for consumers and the independence of the Estonian energy system is to switch to renewable energy as soon as possible,” Mr Kuhi said. “Since the wind doesn''t blow and the sun doesn''t shine all the time, energy needs to be stored. One solution for storing renewable energy is using large-scale storage devices. If we had those, we could have avoided the 4,000 euros electricity prices of last year. Sufficient storage capacity helps ensure affordable electricity prices, the reliability of the energy system and more efficient use of renewable energy.”
Eesti Energia is procuring a storage device with a capacity of 25 megawatts (MW) and 50 megawatt-hours (MWh) to be installed in Ida-Viru County, which corresponds to 1 hour of consumption of approximately 150,000 households.
“Storage devices are useful in many ways,” Kuhi added. ''Firstly, they help to cut off extremely high price peaks during times when there is little affordable renewable energy in the grid. Secondly, storage devices help store renewable energy and plan its use. Without storage devices, energy producers are forced to give away surplus energy at a very low price or for free. This may seem advantageous to other consumers at a particular moment, but it actually has a negative impact on the energy system as a whole.''
The storage device planned by Eesti Energia will allow for the storage of solar energy produced by 2,500 homes over 2 hours, which could be used to offset high prices during the evening rush hour. It would also fully cover the frequency reserve needed in the Baltics.
Eesti Energia plans to find a supplier for the large-scale storage device by procurement in the summer of 2023 and the launch of the pilot project is planned for the second half of 2024.
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EICprovided EUR 5.2 million in funding for ten pilot energy storage projects. Utilitas Tallinn, Utilitas Estonia, Sunly Solar, Prategli Invest, Five Wind Energy, and Eesti Energia each received a grant to begin implementing renewable energy storage device projects across Estonia.
''Estonia''s plan is to produce 100% of its annual electricity consumption from renewable sources by 2030. Renewable energy is good for the consumer and gives businesses a competitive advantage through a smaller environmental footprint. Renewable energy requires a balance between storage and manageable capacities in the system. In terms of the climate, the creation of storage capacity is a good way to increase clean and affordable energy production,'' says Climate Minister Kristen Michal.
Kristjan Kalda, the EIC''s Project Coordinator for Energy, explains that by supporting the installation of storage devices, we are helping to accelerate development of the energy storage market. ''The ten pilot projects that have received a grant will also show other interested parties whether the storage devices can be used and how,'' says Kalda.
Support was granted to three projects for the construction of storage devices to store heat produced from renewable energy sources.AS Utilitas Eesti received a grant of EUR 660,000 for the construction of heat storage devices for the central boiler houses in Jõgeva and Rapla.AS Utilitas Tallinn received a grant of EUR 675,000 to build a heat storage device next to the Tallinn Power Plant and increase the use of renewable energy in Tallinn''s integrated district heating network. Heat storage devices are large hot water storage tanks that are heated during low-demand periods, with the stored heat used to cover peak loads.
Two projects will begin to store both solar and wind energy ve Wind Energy OÜ was awarded a EUR 720,000 grant to set up a battery storage system for wind and solar energy in Saaremaa. The storage devices will help ensure the stability of the electricity grid and the use of renewable energy in the work of Baltic Workboats AS.Eesti Energia AS was awarded a grant of EUR 1 million to build a 4MW/8MWh battery storage system at the Purtse wind and solar hybrid farm, in Ida-Viru County. All of the projects that were awarded grants can be found on the EIC website.
Companies registered in Estonia, which own a renewable energy production unit and are not prohibited by law from owning or operating an energy storage device, were eligible to apply for a grant. Grants were awarded for the installation of heat storage devices by heat companies, and electricity storage facilities by businesses.
The grant funds originate from the Recovery and Resilience Facility (RRF) and the grant was developed by the Ministry of Economic Affairs and Communications in cooperation with the EIC.
Eesti Energia wants to launch Estonia''s first large-scale energy storage pilot project next year. An international tender has been announced to find a suitable storage facility.
Eesti Energia is aiming to procure a 25 megawatt-hour (Mwh) and 50 Mwh storage facility, which will be installed in Ida-Viru County. The total storage capacity will be approximately equal to the amount of electricity consumed by 150,000 households in an hour.
According to Eesti Energia, the large-scale storage facilities will be able to participate in the power exchange and other energy markets to ensure the security of Estonia''s electricity supply.
The planned facilities are expected to have the capacity to store enough solar energy to last 2,500 homes two hours, meaning they could be used to offset high prices during peak hours in the evening. They would also fully cover the need for frequency reserve in the Baltic countries.
The procurement of a large-scale solar power system is planned for summer 2023, with the launch of the pilot project scheduled for the second half of 2024.
Eesti Energia management board member Kristjan Kuhi said, that the storage will be useful for several reasons.
"Firstly, it will help to cut very high price peaks at times when cheap renewable energy is scarce in the grid. Secondly, it will help to store renewable energy and delay its use. Without storage, generators have to give away so-called surplus energy either very cheaply or at no cost. This may look good for other consumers at particular moments in time, but it is bad for the energy system as a whole," said Kuhi.
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