Category: News

The Estonian Supreme Court satisfied the action of the energy company Evecon against the amendment of the Electricity Market Act and acknowledged that requiring a deposit for connecting to the electricity network is unconstitutional. 

The amendment of the Electricity Market Act that was passed a year and a half ago created an unexpected obligation for persons connecting to the network for generation purposes – paying a deposit to the network operator within 60 days. The deposit would not have to be paid if at least 70% of the connection fee was paid.

The amendment of legislation was supposed to expedite the transition to renewable energy, free up unused network resources and remove fictitious connection applications from the transmission network, as these were bringing about the rapid exhaustion of the transmission network volume. The judgment of the Supreme Court clarified that the amendment to legislation would in fact harm renewable energy production.

The new requirement was to apply retroactively to the network connection of large-scale projects such as that of Evecon. “The amendment of legislation created a twofold obligation: payment for the construction of the network, plus a booking fee. It did not take into consideration the circumstances for fast-growing companies, as they have successful developments pending, and due to the large volumes, a deposit would mean millions of euros that would have to be unexpectedly paid within two months and then put on hold. We did not want to go to court, especially against Elering, who implemented the amendment of legislation. However, we firmly believed that enacting such a requirement was not legitimate,” explained Karl Kull, CEO of Evecon.

“By now, for example, we have completed the largest solar farm in the Baltic countries, and in spring, we commenced the development of the biggest battery park in Continental Europe. When it comes to large-scale investments and developments, we proceed from the legislation in force and enter into agreements based on it. It is therefore important for legislative drafting not to rescind existing agreements and conditions for projects already in progress,” said Kull.

In the judgment of the Supreme Court, Chancellor of Justice Ülle Madise noted that enacting the new requirement was unconstitutional as the term provided for the market participants could not be reasonably complied with and the requirement discouraged market participants who joined the network in a purposeful manner. “The requirement was extremely burdensome with respect to the complainants as they had entered into the connection agreement at a time when such an obligation did not exist.”

The Supreme Court panel also recognised that the period for the payment of the deposit was evidently short. “Even more so in a situation where the connection fee – which had increased by several times due to the increase in construction prices – also needed to be paid.” The Supreme Court was of the opinion that providing a longer period for the payment of the deposit for companies that had been connected earlier would not have jeopardised the reduction of CO₂ emissions or the security of supply of energy.

According to Ramon Rask, Partner of RASK Attorneys-at-Law, the judgment of the Supreme Court should remind the legislators of the principles of good legislative drafting and functioning rule of law. “Within the context of the multiple crises experienced in the last few years, there is a tendency to forget the rules on which a stable and functioning legal order is based in the course of legislative drafting. One of these is the principle of legal certainty and the possibility for everyone affected by new legislation to reorganise their activities within a reasonable period of time,” noted the attorney-at-law providing legal assistance to Evecon.

According to Rask, sudden and surprising legislative amendments in the energy sector but also other sectors of the economy incorporating investments with a long payback period are criminal in nature. “Unpredictable legislative drafting will bring about a sharp decline in the confidence of entrepreneurs and investors and thereby suffocate the economy.”

Even though the judgment of the Supreme Court only declared the unconstitutionality of one specific provision, Rask stated that this was part of a larger whole with the objective of commencing reforms of the energy market back in 2023. “This is not about whether the state has the right to change the rules. This is about how it is done. We need more analysis and long-term view and less overreacting.”

Evecon is the leading private equity-based energy company in the Baltic States, developing an energy portfolio of more than 2.7GW, which has so far focused on the development of wind, solar and energy storage parks. The numerous developments of Evecon include, for example, the largest solar farm in the Baltic countries and the biggest battery park in Continental Europe, with the construction of the latter having commenced in spring.

Baltic Storage Platform reached a noteworthy milestone at Kiisa in the course of the construction of the largest battery park in Continental Europe – for the first time in Estonia, a unique underground cable line operating at 330 kV voltage was installed, connecting the battery park with the connection point of the Estonian transmission network.

Two battery parks with a total capacity of 200 MW and a total storage capacity of 400 MWh will be constructed in Harju County through the joint venture Baltic Storage Platform, founded by the Estonian energy company Evecon, the French solar energy producer Corsica Sole and the French investment fund Mirova. Kiisa battery park is scheduled to be completed by the end of 2025 and Aruküla battery park in 2026. The battery parks will play a key role in the synchronisation of the Baltic countries with the European power grid.

“The construction of Kiisa battery park, with its cornerstone laid in the beginning of October, has advanced according to schedule. Construction on the substation building is steadily progressing, the foundations of the equipment have been laid and the foundations of the two 330 kV power transformers have been cast,” said Risto Virveste, Project Manager of Evecon. “However, the most significant detail is that recently, Connecto Eesti installed the first 330 kV alternating current underground cable line in Estonia. Cables with an operating voltage like that have never been installed before in Estonia. Usually, 330 kV overhead transmission lines are used for such solutions.”

The cable was manufactured in the Finnish Prysmian plant – a first for Estonia. It extends to 500 metres in length and has a notable diameter of 12.5 cm, said Risto Virveste. The cable was installed between the substation of the battery park and Elering’s 330 kV substation, which is where the connection point of the battery park with the Estonian transmission network is located.

“This cable is special due to its relatively high price. But in the current case, it was a reasonable solution, as there would have been crossings with several other 330 kV overhead transmission lines between Elering’s Kiisa substation and the battery park, which would in turn render the construction work difficult and expensive, as very high towers would need to be constructed, or the 330 kV overhead transmission lines of Elering would need to be reconstructed,” Virveste explained. The special nature of the cable and the voltage class are characterised by the fact that end insulators with a total length of 5 metres need to be installed at the ends of the cable.

“The installation work of the cable proceeded as planned and thanks to excellent preparation, we completed the installation of the cable in just three days. This is a great example of the level of professionalism and technical capacity of our team. Projects like these show how innovation and professional work combined help the Estonian energy system advance with great strides. The installation of the end joints in the spring will be the next stage,” said Valmar Raigo, Project Manager of Connecto Eesti.

On Thursday, the Estonian energy company Evecon and Mirova, an asset manager dedicated to sustainable finance, opened the largest solar park in the Baltics, located in Kirikmäe in Pärnu County. The production capacity of the Kirikmäe park, spread over nearly 110 hectares, is 77.53 MW, which is more than twice the capacity of the largest existing solar park in Estonia. It covers the estimated annual energy needs of 35,000 households. The Kirikmäe Park is owned by the Baltic Renewable Energy Platform (BREP), a joint venture set up by Evecon and Mirova in December 2022, for the financing, the construction, the operation of a portfolio of more than 100 MWp of Solar Parks in Estonia.    

“The construction of the Kirikmäe solar park is a landmark event for the entire Baltic region due to the size of the production unit and the scale of the investment. Including the Imavere and Lohu mets solar parks, which were opened by Evecon and Mirova just a few days ago, more than 100 MW of production capacity will be added to the local market within one week. This represents about one-tenth of the total solar capacity currently produced in Estonia,” said Karl Kull, CEO of Evecon. “We would like to thank Mirova for the success of this project and also for trusting the Estonian renewable energy market.”

According to Karl Kull, the Kirikmäe solar park was completed in six months, which stakes a claim to the speed record in solar park construction. ‘After the preparation of the solar park site, Wiso Engineering started construction work in April this year. It was a large-scale construction project – there were 250 builders on site at its peak.’

“Evecon proposed a community benefit model to the municipality of Lääneranna in the form of a contract. This is a voluntary step by the company, as there is no provision for the payment of a tolerance fee in the case of solar energy production, as there is in the case of wind turbines. The municipality receives 0.6% of the revenues generated by the park,’ Karl Kull explained. ‘I also wish to thank the municipality of Lääneranna, with whom our affairs were conducted smoothly and whose attitude has been favourable to the construction of such a large solar park in Kirikmäe.”

“The strategy of Mirova’s renewable energy funds has always been to participate in building new installed capacity alongside industrial partners and project developers in Europe. We are proud  to bring our contribution to the Baltics’ decarbonisation and energy independance with this major asset and our grateful to our partner Evecon for the quality of our partnership.“ added Raphael Lance, Head of Energy Transition Funds at Mirova.

“The use of solar energy has grown rapidly in Estonia. In 2020, we started with almost no capacity, but now we rank sixth in the European Union in terms of solar panel capacity per capita. Our goal is clear – by 2030, the electricity we consume must come from renewable sources. Solar energy, which is currently also offering the most affordable electricity, makes an important contribution to achieving this goal,’ said Climate Minister Yoko Alender.

The land area of Kirikmäe solar park is 110 hectares and it will cover the annual electricity consumption of an estimated 35,000 households. A total of 117,600 solar panels with a total power of 655–665 W will be installed there. The manufacturer of the solar panels is Canadian Solar.

The cornerstone was laid for the largest battery park in continental Europe in Kiisa, Estonia

The cornerstone was laid today for the largest battery park complex in continental Europe, in Kiisa, Estonia, by Baltic Storage Platform. This is an important step to ensure the synchronisation of the Baltic countries to the European grid in 2025.

Baltic Storage Platform, a joint venture between the Estonian energy company Evecon, the French solar energy producer Corsica Sole and Mirova, an asset manager dedicated to sustainable finance, aims at building two battery storage parks in Harju County with a total power output of 200 MW and a total production capacity of 400 MWh. The first project should be commissioned by the end of 2025 and should be followed by the second park in 2026.

‘This is a historic moment for both Estonia and for the entire Baltic energy sector for two reasons. First, this is an extremely important and real step to prepare the synchronisation of for the Baltic countries. Secondly, no one has yet built such a large complex of battery parks in continental Europe. I believe that laying the cornerstone together with our good partners from Corsica Sole and Mirova will not be the last, and we will continue to act to ensure energy security in this area,’ said the CEO of Evecon, Karl Kull.

‘We are proud to bring our expertise on energy storage system that we have developed from our origin in the French Islands and that we now export to the rest of Europe to provide the services necessary for the stability of electricity networks and impower the integration of renewable energies,’ said Michael Coudyser, CEO of Corsica Sole

‘We are particularly proud to participate in the decarbonisation and energy independence of the Baltic countries through the deployment of new clean energy production and storage capacities. At the origin of the relationship between our partners Corsica Sole, and Evecon, we have very logically chosen to strengthen the financial capacity of their common platform dedicated to storage to allow it to deploy more capacity in the Baltic countries. This significant milestone speaks to Estonia’s ambitions in deploying local energy storage capacities, which we are pleased to support through our energy transition investment strategy,’ added Raphael Lance, Head of Energy Transition Funds at Mirova

‘Estonia has a clear goal – by 2030, the amount of electricity we consume must come from renewable sources. Energy storage plays an important role here, because we need to store solar and wind energy for moments when nature is currently resting. The development of storage systems helps to ensure a clean, reliable and affordable energy future for the people of Estonia,’ said Climate Minister Yoko Alender.

The battery park under construction and its substation will be connected to the electricity transmission network with a 330 kV AC underground cable, which is a first in Estonia.

More info: https://balticstorageplatform.ee/

PRESS RELEASE
11 SEPTEMBER 2024

Niam Infrastructure and Evecon have formed a partnership for the construction of up to 84 MWp of solar power and 26 MW of energy storage across 11 project sites in Latvia. This collaboration represents a substantial investment in the region’s renewable energy sector, highlighting the strong growth potential of the Latvian market.

The first batch of solar projects, which includes approximately 40 MWp spread across six solar sites, is already under construction, with commissioning planned for the end of March 2025. The second phase, encompassing approximately 44 MWp across five additional sites, is scheduled to begin construction before the end of 2024.

Sverker Åkerblom, CEO of Niam Infrastructure, commented on the investment:

“We are very excited to partner up with Evecon for the deployment of solar energy and storage in the growing Latvian market. We have been following Evecon and the broader Baltic market for a long time and are impressed with Evecon’s capabilities and expertise as well as the development of the Latvian energy market. We look forward to work closely with Evecon and jointly realise these projects and leverage on the evolving opportunities in Latvia.”

In addition to the solar projects, the partnership will actively pursue energy storage opportunities, initially focusing on the development of 26 MW of storage capacity connected to the solar sites. Various offtake strategies will also be explored, including power purchase agreements, to maximize the value of the generated energy.

Niam Infrastructure will provide equity financing for the construction phase, complemented by project financing from Citadele Banka. Upon completion, the projects will be jointly owned and operated by Niam Infrastructure and Evecon.

Gatis Lazda, CEO of SIA Evecon commented on the investment:

“We are thrilled about the opportunity to advance Baltic renewable energy in partnership with Niam Infrastructure. This collaboration is a perfect fit, combining Evecon’s strong presence and experience in the Baltics with Niam’s proven track record in infrastructure investments. This partnership enables us to strategically explore and develop new opportunities across the Pan-Baltic region.”

Vaidas Žagūnis, Member of the Management Board, Chief Corporate Commercial Office at Citadele banka:

“We are pleased to support the development of green infrastructure projects in Latvia, as these initiatives are crucial for driving the Baltic region toward a sustainable and energy-independent future. By investing in these projects, we are not only fostering economic growth but also demonstrating our commitment to responsible and environmentally conscious financial practices that will benefit both the economy and the environment for generations to come.”

This operation benefits from support from the European Union under the InvestEU Fund.

About Niam Infrastructure
Niam Infrastructure focuses on sustainable investments in renewable energy, transport, and telecom across the Nordic and Northern European regions. Its first fund targets small to medium-sized investments, with an emphasis on asset aggregation and risk reduction in sustainable infrastructure. Supported by the European Union under the InvestEU Fund, Niam Infrastructure leverages innovation, deep expertise, and close partnerships to promote a greener and more sustainable future.

About Evecon 

Evecon is an Estonian energy company whose main activity is the construction of wind and solar parks in Estonia, Latvia and Lithuania. By now, Evecon has completed renewable energy development projects with a production capacity of 59 MW. Additionally the company has 850 MW of active solar electricity projects and 900 MW of wind projects under development in Estonia, Latvia and Lithuania, which will be connected to the electricity grid by the end of 2026 and 2027. Evecon produces green energy for a cleaner future.

WiSo Engineering, the builder of energy parks and facilities, signed a representation rights agreement for the Baltic and Nordic region with TEK Transformatör, the leading transformer manufacturer in Turkey, which will create additional opportunities for the construction and reconstruction of energy parks and distribution networks in this region, as well as contribute to the implementation of national renewable energy goals.

‘TEK Transformatör has been engaged in the production and sale of distribution transformers for over 40 years and is a rising player in the world of transformers. Becoming the factory’s official sales representative in this region is an important step for WiSo Engineering, because as a renewable energy main contracting company, we will now also be involved in the resale of very important and high-quality products in the field of energy,’ said Madis Anni, Procurement Manager of WiSo Engineering.

According to Madis Anni, transformers are an important part of the electrical network, and are mostly used in distribution networks, industries, renewable energy facilities. Transformers convert high voltage to low voltage (and vice versa) so that electricity reaches everyone’s homes, as well as industries, hospitals, and other places.

‘The transformer market has been changing rapidly since 2018. This was caused by the big boom in renewable energy, electrification, large investments in transmission and distribution networks, rising prices, and availability of commodities, as well as geopolitical tensions,’ explained Madis Anni. ‘The situation has improved a little so far, but demand continues to be high and there is no sign of a decrease in demand in the near future.’

In Europe, the demand for new transformers is affected by the modernisation of existing energy systems and the replacement of old equipment, the development of industry, and the constant addition of new renewable energy production units.

According to Madis Anni, the first TEK transformers arrived in Estonia at the beginning of 2023. ‘As a local sales representative, we make sure that the factory is maximally represented in the region. This, in turn, gives the energy park developers and network companies here one more strong manufacturer to consider when choosing transformers and to involve in tenders. The factory has also recently received a quality certificate from the KEMA laboratory, guaranteeing the end customer the proper functioning of the product and top technical quality,’ he said.

WiSo Engineering (www.wiso.ee) builds energy facilities for farmers, industries, trade, and other companies whose annual consumption ranges from a few hundred megawatt-hours to several tens of gigawatt hours. WiSo Engineering offers a turnkey solution, state-of-the-art technology, facility maintenance, operation management, and main contracting for energy park developers.

The years of energy crisis brought about a solar panel boom in Estonia. Several thousand new solar energy production facilities were installed annually. There were also discussions about increasingly ambitious plans for wind energy production. At the same time, concerns were raised: what happens when the sun isn’t shining and the wind isn’t blowing? During these periods, electricity prices on the market can skyrocket because the decrease in production capacity cannot meet demand anymore. There is a need for controllable electricity production or storage solutions to store energy during times of low prices. However, there was little talk about storage solutions apart from a few massive projects with exorbitant costs, which were still years away from completion.

Read more:

https://arileht.delfi.ee/artikkel/120271806/ulikorged-elektrihinnad-kaovad-eesti-taitub-elektrisalvestitega

The State Audit Office recently expressed doubts in its newly completed audit report “State Action in Promoting Wind Energy” that Estonia will be able to meet its renewable energy targets by 2030 as no new wind farms have been added.

From the developer’s perspective, the picture is significantly more optimistic – within the next couple of years, a sufficient amount of new onshore wind farms will start producing electricity to meet Estonia’s renewable energy needs.

Read more:

https://arileht.delfi.ee/artikkel/120266875/reaktsioon-arendaja-esindaja-riigikontrolli-kartus-on-alusetu-tuulepargid-saavad-oigeks-ajaks-valmis

The leading energy park developer in the Baltics, Evecon, welcomed the development that the Ministry of Climate has begun mapping the status of renewable energy projects this year. This initiative allows the country to accomplish the green transition ahead of the planned schedule.

“This past year marked a significant step forward in renewable energy,” noted Karl Kull, CEO of Evecon OÜ. “A very positive development was the Ministry of Climate’s initiative to map the status of renewable energy projects. This demonstrates that wind farm developments are being carried out to a considerable extent on land, not just planning for future offshore park developments. If Estonia continues in the same direction, the green transition can be completed before 2030.”

According to Kull, the past year was a breakthrough for Evecon itself, transforming from a relatively unknown renewable energy producer to an energy company that, in addition to ongoing development projects in the region, will soon offer electricity system regulation services and whose investments are strategically important from the perspective of the entire European market.

“We believe that supply security can be ensured through cooperation with the private sector in an open market environment, and to ensure Estonia’s energy security, we should adhere to the principle of technology neutrality to encourage the emergence of suitable equipment,” said Kull.

This year, four solar parks of various sizes built by Evecon began operations. In July, Estonia’s first larger tracker solution solar park with a capacity of 8.74 MW was completed in Paide. In September, Evecon opened the largest solar park in Southern Estonia near the village of Tsirguliina in Valga County with a total capacity of nearly 16 MW. In addition, work started on the Vase Park in Mustvee with a capacity of 4.4 MW and the Ringimetsa Park in Elva with a capacity of 3 MW.

In November, Evecon and Corsica Sole, the leading energy storage company in France, established a joint venture, Baltic Storage Platform, which will build a 400 MWh battery park complex in Estonia by 2026. It will be the most powerful battery park complex of its kind in Continental Europe.

In Lithuania, Evecon completed solar parks totaling 44 MW this year, serving as energy cooperatives for prosumers.

Evecon, the Baltic’s leading energy park developer based on Estonian capital, will develop 78 solar power plants with a total capacity of 1465 MW by the end of 2024 and 20 wind parks with a capacity of 1200 MW by the end of 2027.

Evecon, an Estonian renewable energy company, and Corsica Sole, a French company, will build two battery energy storage systems with a total capacity of 200 megawatts in Harju County by 2025.

The battery parks will be located in Kiisa in Saku Rural Municipality and Arukylä in Raasiku Rural Municipality, correspondingly. Elering’s emergency power plant is located in Kiisa as well.

In 2025, Estonia, Latvia, and Lithuania will decouple from the Russian electricity grid, and the Baltic networks will be linked to the continental European grid. The battery farm is scheduled to reach its completion at that time. This will ensure an adequate emergency reserve and in the future, the battery park can be converted into a storage facility for renewable energy.

The two battery parks have a total capacity of 200 megawatt-hours and 400 megawatt-hours respectively, which means that 90,000 households can be supplied with electricity when necessary.

Elering is building the connections for the future battery farms that are scheduled to go into operation during the second and third quarters of 2025. The first park will be built in Kiisa during the spring of the following year, and the second in Arukyla during the fourth quarter of 2024. Kiisa will get the batteries from Corsica Sole by the end of 2024.

Michael Coudyser, CEO of Corsica Sole, said that fluctuations in the electricity system can be adjusted to in a matter of seconds using a battery bank. To counterbalance the impacts of fluctuations in grid frequency, the batteries quickly store or generate electricity.

A battery park is a controlled environment made up of several containers. Depending on the manufacturer, a single container could hold hundreds or thousands of batteries.

The battery park will be called the Baltic Storage Platform, in which Evecon will have a 20 percent stake and Corsica Sole will have 80 percent stake.

Climate Minister Kristen Michal (Reform) said that the emergence of reserve and storage capacities in Estonia is good news and it is particularly welcome that it is being done by private companies.

Evecon plans on building 20 wind farms with a total capacity of 1,200 megawatts by the end of 2026 and 78 solar plants with a total capacity of 1,465 megawatts by the end of 2024.

Corsica Sole is a French renewable energy company created in 2009 in Corsica. The company set up its first battery farm in 2021.

Continental Europe’s biggest battery system was built by Corsica Sole in Belgium in December 2022. The system helps to ensure the stability of frequency in the European electricity network. The main way battery systems do this is through participating in Frequency Control Reserve (FCR), which will be gradually replaced by a pan-European service called automatic frequency restoration reserve (aFRR).

Eesti Energia was unable to secure a contract for a large-scale energy storage facility through an international tender. It is expected that it would have a capacity ranging from 25 to 50 megawatt-hours that sufficiently meets the reserve needs of the Baltic countries. Eesti Energia said that despite the unsuccessful tender, it was going ahead with the project.

https://news.err.ee/1609168195/europe-s-most-powerful-battery-park-to-be-built-in-estonia