Enefit Power to activate shale oil exception at Balti plant

Enefit Power will start using shale oil in the reserve boiler at the Balti power plant from Sunday if its 11th unit is not competitive in the electricity market or is out of order, ERR reported. The company informed the head of the Environmental Board, Rainer Vakra, and Climate Minister Erkki Keldo of the decision.

The Environmental Board’s October 21 order allows preventive use of shale oil while there is a risk of gas supply being interrupted or restricted, or of district heating becoming unaffordable for consumers in Narva. Enefit Power board chairman Raine Pajo said the company considers the conditions for using the measure to be met.

Pajo cited volatility in the gas market, rising winter demand and the possibility of further supply disruptions. He said district heating could become economically inaccessible to consumers even if gas supplies are not actually interrupted. He also pointed to lower-than-usual gas storage levels in the European Union, high gas prices and winter supply risks.

Pajo said the Middle East crisis had contributed to European gas prices reaching a four-year high in October. He described shale oil use as a temporary preventive measure intended to reduce Narva’s district heating dependence on volatile imported natural gas. Enefit Power will determine how much shale oil to use based on gas supply conditions and risks, affordability assessments and the heat demand of Narva’s district heating system.

Pajo also said Narva considers the use of shale oil necessary under the current circumstances.