Estonia, together with the other Baltic states, will disconnect from the Russian electricity network in early 2025. This is an important step both for ensuring energy security and for integrating into the European electricity network.
The process implementation and smooth operation in Estonia are ensured by the system operator Elering, which is responsible for managing the electricity system and preparing for synchronisation with the Continental European frequency area.
To clarify the entire process from the perspective of electricity consumption, we have compiled the main questions that consumers have raised and provide answers to them.
1. What is desynchronisation, and why is it being carried out?
Desynchronisation means disconnecting Estonia’s electricity network from the Russian electricity system, followed by connecting to the Continental European electricity network and the corresponding frequency area. Together with Estonia, Latvia and Lithuania will also disconnect from the Russian network.
The purpose of the change is to ensure energy independence and to increase the security and reliability of our electricity system. After desynchronisation, Estonia will no longer depend on the Russian electricity network and will be able to react more quickly to frequency changes occurring in Europe.
2. What is the impact of synchronisation with the Continental European frequency area on Estonia’s energy security and electricity supply?
Disconnecting from the electricity network and synchronising with Europe will enhance energy security. This means that the Estonian electricity system will become more autonomous and will no longer depend on the Russian electricity network and the events occurring in its system.
For the consumer, the transition will go unnoticed – the Baltic states have strengthened the existing electricity networks and interconnections over the past years for this purpose.
3. Will desynchronisation result in power outages?
The disconnection from the Russian electricity system will not increase the number of power outages in the Estonian transmission network.
The entire process has been carefully prepared for years, and in cooperation with other Baltic states and European partners, the transmission network has been strengthened, energy reserves have been increased, and connections with the Western European system have been established.
To ensure the smoothest possible transition, (de)synchronisation will be carried out in stages and in accordance with the guidelines of ENTSO-E, the European Network of Transmission System Operators for Electricity. After synchronisation, the electricity system of the Baltic states will comply with the requirements of the Continental European system and applicable standards.
4. Will synchronisation with Continental Europe affect electricity prices, and if so, how?
The expected impact of synchronisation on the final electricity price is limited, remaining within a few per cent. This is primarily due to the need for maintaining frequency independently and holding FRCs.
Electricity prices on the exchange may temporarily increase due to a reduction in market supply and limitations on interconnection capacities. In the longer term, prices may stabilise or even decrease when the market adjusts, and new production capacities increase competition.
Among other things, the following can help to lower the price:
- Constraints on transmission capacities within the Baltics, which allow a larger volume of affordable Nordic energy to remain in Estonia.
- Possible new production capacities brought to the market for holding reserves. This increases the supply of electricity and pushes prices downward.
At the same time, the final impact of desynchronisation will also depend on changes in system management costs and market dynamics.
5. Do I need to reconfigure my electrical devices or make other changes?
No, consumers do not need to reconfigure their electrical devices or worry about potential technical issues due to synchronisation. The change occurs at the electricity system level and does not affect the functioning of devices in households or companies.
6. When will synchronisation take place, and how long will it take?
According to the joint agreement of the Baltic prime ministers and an additional agreement of the system operators, synchronisation with the Continental European frequency area will occur in February 2025. On 8 February, the Baltic electricity system will disconnect from the Russian network, and on 9 February, after an island operation test, it will connect to the Continental European frequency area.
Read more on Elering’s website.
7. Will synchronisation affect my current electricity contract? Should I take any steps regarding my electricity package?
Synchronisation will not affect existing electricity contracts and does not require any changes to contracts, but it may affect the sales price of new contracts.
If you have signed a fixed-price package, the agreed terms and price will remain valid until the end of the contract. For a package based on exchange prices, the cost may vary slightly depending on the electricity market conditions and energy prices. However, the changes resulting from synchronisation are expected to be more long-term in nature.
Currently, there is no clarity on how the Frequency Containment Reserve (FCR) fee will be implemented. It is possible that it could mean an additional cost of around €10 per year for the average private consumer.
8. Which electricity package should I choose?
When choosing an electricity package, make sure it suits your consumption habits and budget. If price stability and the ability to plan expenses are important to you, choose a fixed-price package. If you prefer to manage your consumption or produce your own electricity, consider an exchange package.
If you need advice on selecting an electricity package or have other questions, we are happy to assist. Call us at 777 4040, email us at teenindus@enefit.ee, or submit a consultation request on our website.
