The Narva power plants have started using biofuel
Between autumn 2009 and summer 2010 the power plants in Narva used biomass for about 10% of their fuel, which is burned together with oil shale in the two circulating fluidised bed energy blocks. This significantly increased the proportion of renewable energy both in the portfolio of state-owned energy company (Eesti Energia 2010) and in the overall electricity production in Estonia.
Changes introduced in summer 2010 to the system of subsidies for renewable energy production meant that continuing to use biomass is economically feasible only in the combined heat and power block of the energy company’s Balti plant in Narva. The new energy block produces an average of 130-140 GWh of renewable energy each year, which is enough to cover 2% of yearly electricity consumption in Estonia.
It should be noted that after the power plant started to use biofuel the prices of wood increased significantly as a significant amount of raw material was taken away from the market. Indirectly, this price increase in the wood market also contributed to a price increase in the heating costs of households and smaller power plants (Eljas-Taal 2011).
Subsidies for renewable energy production
Dependence on subsidies
Using biomass as an energy source is better for the environment and allows to cut consumption of oil shale, lowering carbon dioxide emissions and ash production.