Narva Power Plants decided to suspend production of renewable energy from wood chips

Monday, 13 August 2012

In the light of the Estonian Government having initiated an amendment to the Electricity Market Act and limiting production of green energy in the Balti Power Plant, the Narva Power Plants decided to suspend production of renewable energy from wood chips, writes Delfi.ee.

“From this week onward, we will only burn oil shale at Narva and no wood chips,” said Raine Pajo, member of the management board of Eesti Energia in charge of production operations. He added that while production of energy from oil shale has a greater impact on the economy, the Government is planning to have the new proposed legislative amendment enter into force retroactively from January 1, 2012 and hence Eesti Energia decided to avoid the risk of having the enterprise earning a loss.

Pajo remarked that it was regrettable that the legislative proposal wishes to limit the production of renewable energy that requires lower subsidies. “Using oil shale together with wood chips for production of electricity and heating is the cheapest method for producing renewable energy as it requires the lowest subsidies,” he explained.

Eesti Energia stated in its press release on Monday that using a combination of oil shale and wood chips in order to produce electricity and heating would significantly help reduce the environmental impact of using oil shale. Due to the use of biofuels in the Balti Power Plant, the generation of oil shale ashes in Estonia was reduced by approximately 180,000 tonnes and nearly 400,000 fewer tonnes of oil shale was used for producing electricity.

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