Enefit Power secures approval to heat Narva with shale oil

Energy producer Enefit Power will use shale oil to heat the city of Narva once its Baltic power plant stops operating, ERR reported. The company has permission from the Environmental Board and the Ministry of Climate to use the fuel, with residents’ ability to pay taken into account.

The Baltic power plant is currently running a combined heat and power unit fuelled by a mix of oil shale and biomass. District heat from the plant costs 60 euros per megawatt-hour, excluding VAT, and is available at the best possible price through Monday. The plant is expected to keep operating until the end of the week.

Once it shuts down, Enefit Power will switch to a reserve boiler house, where shale oil can be used this winter under the Environmental Board’s permit. Heat produced with shale oil will cost about 50 percent more than heat from the Baltic plant, but 20 percent less than gas-fired heat.

“We have gas supplies available at the moment, but gas is extremely expensive and unaffordable for residents,” Enefit Power board chairman Raine Pajo said. He added that if electricity market prices fall, the company will have to shut down the power unit and switch immediately to oil.

Narva households have annual incomes about one-third below the Estonian average, according to the city government, while their spending on district heating is 50 percent higher. Mayor Jaan Toots said costs above 80 euros per megawatt-hour would place a heavy burden on residents. About 30 percent of the city’s residents are pensioners, he said, and many employed residents earn the minimum wage.

Enefit Power may use shale oil to heat Narva until the end of the heating season. A more sustainable heating solution is not expected until late 2028.