|Type||Public limited company|
|Area served||Estonia, Latvia, Lithuania, Finland, Jordan, Utah|
|Key people||Sandor Liive (CEO)|
|Products||Electric power and heat
|Services||Electricity and heat distribution
Sale of electricity
|Revenue||€858 million (2011)|
|Owner(s)||Government of Estonia|
|Employees||~ 7400 (2010)|
Eesti Energia AS is a public limited energy company in Estonia with its headquarters in Tallinn. The world's biggest oil shale to energy company was founded in 1939. The company operates in Estonia, Latvia, Lithuania, Finland, Jordan and the State of Utah, United States. In Estonia the company operates under the name Eesti Energia, while using the brand name Enefit for international operations. The main raw material for energy production – oil shale – is extracted from mines located in Eastern-Estonia and owned by the company. The group of Eesti Energia has three main products: electricity, shale oil and providing electricity network services (Elektrilevi OÜ). Its shares are owned by the Government of Estonia.
Eesti Energia was founded in 1939. In 1998, it was reorganized from the state enterprise to public limited company. In 1998–1999, two distribution companies (Läänemaa Eletrivõrk and Narva Elektrivõrk) were separated from Eesti Energia and privatized.
In 1995, the Government of Estonia started negotiations with NRG Energy, a subsidiary of Northern States Power Company, to create a joint venture on the basis of Narva Power Plants, a subsidiary of Eesti Energia. According to the basic terms of sale, agreed in 2000, NRG Energy was to acquire 49% stake in Narva Power Plants. In addition, that time Narva Power Plants owned also 51% stake in the oil-shale mining company Eesti Põlevkivi. The proposed deal got a strong public and political opposition. The deal was cancelled by the Government on 8 January 2002 after NRG Energy failed the deadline to secure financing for the deal. On 21 August 2002 NRG Energy filed to the London court claiming £100 million compensation for damages from the cancelled deal; however this claim was rejected.
In 1999, Government handed 51% of shares of Eesti Põlevkivi to Narva Elektrijaamad. In 2003, Government transferred remained 49% stake in Eesto Põlevkivi to Eesti Energia. Also Narva Elektrijaamad-owned 51% stake was transferred to Eesti Energia and Eesti Põlevkivi became a fully owned subsidiary of Eesti Energia.
In 2000, Eesti Energia and Latvenergo announced a plan to merge companies to create a new Baltic Power Group. However, this deal was halted due to Latvian legislation forbidding privatization of Latvenergo and uncertainties around the NRG deal.
In 2003, Eesti Energia tried to privatize Lithuanian distribution company RST. Although Eesti Energia fulfilled the privatization criteria and was the only bidder at the final stage of privatization, the privatization was halted by the Lithuanian Government.
On 1 December 2005, during his visit to Estonia, Lithuanian Prime Minister Algirdas Brazauskas met with the CEO of Eesti Energia Sandor Liive to discuss Eesti Energia's participation in the proposed Visaginas Nuclear Power Plant project. On 8 March 2006, the heads of Lietuvos Energija, Eesti Energia and Latvenergo during their meeting in Ignalina signed a memorandum of understanding on the preparation for construction of a new nuclear reactor in Lithuania. Eesti Energia negotiated for six years; however, the project was put on hold after government change in Lithuania at the end of 2012.
In 2006, Eesti Energia started to trade at Nord Pool Spot power exchange by acquiring Finnish trading company Solidus Oy. At the same year it started to sell electricity in Latvia and one year later in Lithuania. The company started its international oil shale activities in 2006. That year its subsidiary Oil Shale Energy of Jordan was created for the shale oil development project in Jordan. The memorandum of understanding between Eesti Energia and Government of Jordan was signed on 5 November 2006. The concession agreement was signed on 11 May 2010 in the presence of Jordanian and Estonian prime ministers Samir Zaid al-Rifai and Andrus Ansip. In March 2011, it acquired 100% shares of the Utah-based Oil Shale Exploration Company.
To implement the EU 3rd energy package, on 28 August 2009 Government decided to separate and buy-out the transmission system operator Elering from Eesti Energia. The transaction was concluded on 28 January 2010.
Eesti Energia is the leading energy company in the Baltic states and the largest company in the world working with oil shale – each year about 15 million tonnes of oil shale are used to produce energy.
Oil shale is a sedimentary rock formed on the bottom of lakes and seas 400–450 million years ago. Oil shale can be used directly as a fuel for producing energy or synthetic oil. Oil shale is not well known as a fuel for energy production, because it has been used much less than coal and crude oil. However, the high price and diminishing reserves of crude oil and economic growth have led to interest in the possible wider use of oil shale.
Eesti Energia extracts oil shale by opencast mining in the Narva quarry and by underground mining in Estonia mines.
The largest Estonian producer of electrical and heat energy is Narva power plants, owned by Eesti Energia, which provides around 95% of the electrical energy consumed in Estonia and supplies the whole town of Narva with heat.
The Eesti and Balti power plants, the production plants in Narva, are the world's largest power stations running on oil shale and can each produce about 9 TWh of electricity each year.
For shale oil production, Eesti Energia uses a unique solid heat carrier technology process. The first Enefit technology oil plant was commissioned in 1980 and is still operating. Eesti Energia currently operates two Enefit-140 shale oil units that are the only working plants of their kind in the world. The plants produce about 1,4 million tones of shale oil per year. The new-generation Enefit280 plant is currently in hot-commissioning process (2013) and will double current capacities.
In Jordan, its subsidiary Jordan Oil Shale Energy Company is preparing construction of a shale oil plant with capacity of 36,000 barrels per day (5,700 m3/d). The shale oil plant will use the Enefit processing technology technology; construction is slated to begin by 2015. Its another subsidiary in Jordan, Attarat Power Company, is planning to build a 460 MW oil-shale-fired power plant at Attarat Umm Ghudran. The power station is expected to be operational by 2016.
In Utah, United States, its subsidiary Enefit American Oil owns or leases more than 30,000 acres (120 km2) of oil shale property in the Green River Basin. Enefit American Oil plans to build a 57,000 barrels per day (9,100 m3/d) shale oil plant.
Eesti Energia has following subsidiaries:
- AS Eesti Energia Narva Elektrijaamad (Narva Power Plants). The company generates 95% of electricity produced in Estonia, and furnishes the city of Narva with heat. The company is also engaged in sales of fly ash, which can be used in agriculture and production of construction materials.
- AS Eesti Energia Kaevandused (100%) – a oil-shale mining company engaged in the extraction and sale of oil shale. The company supplies Eesti Energia's Narva Power Plants and other customers with fuel (oil shale). Eesti Energia Kaevandused consists of two mines, two quarries and a railway transport unit.
- OÜ Eesti Energia Jaotusvõrk (100%) – a distribution network operator.
- AS Eesti Energia Õlitööstus (100%) – an operator of the Narva Oil Plant
- Televõrgu AS (100%) – a telecommunications network company
- AS Eesti Energia Tehnoloogiatööstus (100%) – manufacturer of energy and industrial equipment, maintenance and supply services.
- AS Eesti Energia Võrguehitus (100%) – network construction, planning and consulting on electrical systems.
- Enefit Outotec Technology (60%) – a joint venture with Outotec for developing shale oil extraction technology
- Iru Elektrijaam (100%) – Iru Power Plant, heat and power company.
- AS Nordic Energy Link (39.9%) – operator of Estlink submarine power cable between Estonia and Finland.
- SIA Enefit (100%, Latvia) – a subsidiary supplying electricity and offering balance provider services in Latvia.
- UAB Enefit (100%, Lithuania) – a subsidiary supplying electricity in Lithuania.
- Jordan Oil Shale Energy Company (76%, Jordan)
- Attarat Power Company, Jordan
- Enefit American Oil (former name: Oil Shale Exploration Company, 100%, United States)
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