The price of heat energy produced at the Iru power plant is changing
The Competition Authority has approved a price cap of €20.06 per megawatt-hour for heat produced from mixed municipal waste at the Iru power plant. This remains the most affordably produced heat energy in Estonia, which is entirely purchased by AS Utilitas for district heating customers in Tallinn and Maardu.
According to Innar Kaasik, a member of the Management Board of Enefit Green, the company is adjusting the heat price to ensure the long-term operability of heat energy production: "Setting a new price cap is unavoidable to maintain the operability of heat energy production at the Iru power plant. The main reasons for the price increase are the rising Elering network fees and the higher cost of natural gas used during waste block shutdowns."
The current price cap of €18.29 per megawatt-hour will be replaced by €20.06 per megawatt-hour for heat produced from mixed municipal waste at the Iru power plant, starting January 17, 2025.
Since 2013, the Iru power plant has been converting mixed municipal waste into electricity and heat, significantly reducing landfill disposal. In doing so, Enefit Green contributes to a cleaner environment in Estonia and a smaller landfill footprint. In 2023, Enefit Green processed a total of 249,000 tons of mixed municipal waste and refuse-derived fuel into electricity and heat at the Iru power plant.
Heat prices in Estonia are regulated by the District Heating Act and are cost-based. Prices are monitored and approved by the Competition Authority.