Number of DSOs
As of the end of 2023, Estonia had 33 distribution network operators (DSOs).
The largest distribution network operator is Elektrilevi OÜ, representing an 88% market share based on sales volume, followed by Viru Elektrivõrgud OÜ, Imatra Elekter AS, and Loo Elekter AS.
Source: Electricity and Gas Market Report 2023 by the Estonian Competition Agency (published on 2024, in Estonian)
Digitalisation
Smart meter penetration rate
Over 99% of Estonian domestic consumers have installed remote reading devices. Estonia's TSO Elering allows all the users to connect to the smart grid platform.
Sources:
- Elektrilevi,
- Elering, Estonian Electricity Supply Security Report (2023),
- Veskioja, K. Soe, R, Kisel, E. “Implications of digitalization in facilitating socio-technical energy transitions in Europe”, Energy Research & Social Science, Sep 2022
Policies
Estfeed, the data access platform created by the TSO, connects energy datahubs together and enables energy companies, demand response aggregators, and other service providers to access data from one place. The platform allows all interested parties to develop, market, and use smart solutions. By the start of 2025, all major metering points will transition to 15-minute metering.
Since the full liberalisation of the power market in 2013, customers can choose local or external suppliers. All the relevant electricity network nodes are automated and digitised.
Based on the digitalisation of the system, several digital services have been created for customers. For example, mobile apps let customers access their hourly consumption data from the past three years, check the next day's hourly power prices, receive alerts about price increases and low-price periods, and manage their bills and contracts.
The Electricity Test app lets customers check if their main fuse has enough capacity, helping them optimise and lower their electricity bills.
Smart meters have made it easier for customers to become electricity producers, using government subsidies to install solar panels.
Sources:
- Elektrilevi, news (May, 2024) https://elektrilevi.ee/en/uudised/tulevikus-mooteandmed-15-minutilise-t apsusega
- Veskioja, K. Soe, R, Kisel, E. “Implications of digitalization in facilitating socio-technical energy transitions in Europe”, Energy Research & Social Science, Sep 2022
- Grid Code
- Elering, “7.4.1. Estfeed data exchange platform”
Specific rules for islands, isolated grids, microgrids, local grids, etc.
The rules are the same for all the users, according to the TSO, Electricity Market Act and Grid Code.
Tariff methodologies
How does the tariff methodology account for the deployment of RES?
Producers of electricity generated from a renewable energy source using a generating installation whose net capacity does not exceed 125 MW, are entitled to support from the TSO, according to Electricity Market Act.
The ECA may approve a different rate if the electricity is generated in an efficient cogeneration process from a renewable energy source or peat.
However, starting from 2021, the tariff methods were replaced by the reverse auctions. Support is now given under the rules of a reverse auction for electricity produced from renewable energy source and that have an electrical capacity of more than 50 kW and less than 1 MW, according to Electricity Market Act.
The specific characteristics of renewable energy communities are taken into account when elaborating support schemes, in order for such communities to be able to compete for support on an equal footing with other market participants, according to Electricity Market Act.
How does the tariff methodology adapt to islands, microgrids, local grids, etc.?
The producer may apply for support for electricity generated from renewable energy source with an electrical capacity of less than 1 MW, according to Electricity Market Act.
Are any policies being produced to account for such developments?
One of the goals in Estonia's Energy Policy by 2035 states that 50% of the total domestic consumption should come from renewable energy sources. The construction of new renewable electricity production facilities is expected to occur on open electricity market conditions without additional domestic subsidies.
Electricity Management - RES
Are there existing caps for RES installed capacity in the network?
Estonia has caps for RES installed capacity, specifically for wind power plants. Support for wind power producers is discontinued once they reach a threshold of 600 GWh of annually produced electricity, according to the Electricity Market Act.
What are the curtailment rules for RES generation?
The curtailment rules are determined by the type of RES technology and the installation’s capacity, as regulated by the Electricity Market Act and the Network Code. Specifically, the active output power of wind turbines and wind farms must be controllable at a rate of at least 8% of their rated power per minute, provided that wind conditions allow it, with power control limited to 30% within the range of 20-100% of the rated power of the equipment, according to Grid Code.
The TSO can restrict and control the power production of all wind parks connected to main grid in real-time.
Who is responsible for voltage balancing, frequency reserve, unit dispatching, electrical system management?
The TSO is responsible for ensuring the security of supply and balance of the system at any moment in time, according to the Electricity Market Act.
Who has access to metering data?
TSO Elering is responsible for transmitting and receiving metering data,
fulfilling legal obligations for market participants, and ensuring their rights. All consumers and producers have access to their own metering data through the Estfeed data exchange platform, which allows market participants to view relevant information related to their agreements and metering points, according to Electricity Market Act.