Elektrilevi's development plan requires 2 billion euros, not covered by current network tariffs

Elektrilevi is embarking on an ambitious development plan, aiming to invest approximately 1.9 billion euros in Estonia's electricity distribution network by 2036. The primary goals are to enhance network reliability, increase capacity for new connections, and bolster resilience against extreme weather and security challenges.

Mihkel Härm, CEO of Elektrilevi, highlighted the urgency, stating that 28% of the current network has reached the end of its operational life, a figure that grows annually. "We aim to put a stop to this and invest nearly 1.9 billion in the networks over the next 10 years," Härm said. This investment is crucial for ensuring supply security, facilitating reasonable connection costs for producers and consumers, and delivering a modern customer experience.

The required investment significantly exceeds what current network tariffs can cover. An additional 350 million euros is needed specifically to strengthen the grid's crisis resilience. To address this funding shortfall, Elektrilevi is exploring flexible services, set to be tested starting in 2027, which could potentially reduce the need for direct investment.

The need for increased investment is driven by rapidly changing electricity consumption patterns. Peak demand, which has ranged between 1250 and 1450 megawatts, is projected to grow by 20-30% over the next decade, reaching around 1788 megawatts by 2036. Key drivers include the electrification of transport, adoption of energy storage solutions, industrial growth, and the shift to electric heating in buildings. Furthermore, distributed generation has seen rapid expansion, growing from 35 megawatts in 2016 to an estimated 1047 megawatts by the end of 2025.

Härm emphasized the broader impact of these investments, calling them "an investment in the well-being of all of us." He believes that by investing wisely now, Estonia can avoid the capacity issues faced by many European grids struggling to accommodate large data centers. The plan aims to support economic development and ensure a robust energy infrastructure for the future.

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Täna on 28 protsenti meie võrgust jõudnud oma projekteeritud eluea lõppu ja see protsent kasvab aasta-aastalt. Meie eesmärk on seada sellele pidur ning investeerida järgmisel 10 aastal võrkudesse ligi 1,9 miljardit. Nii tagame varustuskindluse, tootjate ja tarbijate mõistlike kuludega võrku liitmise ning tänapäevastele ootustele vastava kliendikogemuse.