Ignitis subsidiary weighs gas power plant near Tartu

Ignitis Eesti, the Estonian subsidiary of Lithuanian energy group Ignitis, is preparing for a possible gas-fired power plant of up to 200 megawatts in Kastre municipality, Tartu County, ERR reports.

Managing director Timo Tatar said the company’s interest is linked to Elering’s plans to procure capacity to restart Estonia’s electricity system. Under the planned tender, the plant would need to be ready to start and operate independently when needed for a system restart. At other times, it could sell electricity on other markets, he said.

Kastre Mayor Priit Lomp said Uniküla is technically suitable for a plant of this kind. A main gas pipeline and a 330-kilovolt power line are nearby. Lomp said there are only three technically viable locations in southern Estonia, in Jõgeva, Tartu and Kastre municipalities.

Tatar said Uniküla’s proximity to Elering’s natural gas network and strong electricity connections made it attractive. He added that it was difficult to say whether gas would reach the plant by liquefied natural gas tanker or from Norway.

The company has applied to Kastre municipality to initiate a detailed plan, but Tatar said this does not amount to a final investment decision. Ignitis is also looking at suitable sites elsewhere, he said, and is making preparations in case Elering’s tender conditions prove attractive. Elering plans to announce the tender towards the end of this year.

The municipality has not started processing the detailed plan application. Lomp said Ignitis is not the only company interested in building a gas plant in the area, and the municipality has sent the proposed location to the Ministry of Economic Affairs and Communications for review against state land-use and other planning documents.

The site is designated as valuable farmland in the municipality’s general plan. However, Lomp said the plan allows consideration of projects with a very strong public interest, which the municipality considers electricity-generation capacity to be.

The estimated cost of building a gas-fired power plant of up to 200 megawatts is about 200 million euros.