Kaamos Group, a well-known name in the Estonian real estate market, has taken a decisive step towards green technology together with the timber industry group Combiwood. Their joint company – KC Energy – has quickly become one of Estonia’s most active developers of solar and wind energy. The CEO of KC Energy Mihkel Loorits discusses how the company is helping to shape the future of energy in Estonia and why they decided to start participating in flexibility markets using Enefit Algo software.
What role does KC Energy play in the renewable energy sector of Estonia today?
KC Energy develops solar and wind energy generation across Estonia to ensure a stable, affordable and domestically produced energy supply. Our activities are built on a strong team, innovative technologies, energy storage solutions and close co-operation with local communities, local governments and the state.
Today, we operate more than 50 renewable energy generation units across Estonia, from Hiiu County to Jõgeva and Lääne-Viru Counties. The most recent generation units were completed in Vaida and Anija. In the latter, we launched the 53-megawatt Pihlaka Solar Park earlier this year, which is one of the largest in Estonia.
You have significantly expanded your generation portfolio.
Yes, that is right. We started in 2020 and have now grown our generation portfolio to nearly 90 MW of solar generation capacity. In 2024, the balance sheet total of KC Energy increased by one-fifth, reaching €104.5 million, while total investment in expanding generation capacity amounted to nearly €30 million. The consolidated total revenue of KC Energy and its subsidiaries was €15.59 million last year.
What are your plans for the future?
We will continue to develop new projects both this year and in the years ahead. In addition to solar energy, we are increasingly focusing on wind energy, storage projects and combined solutions. Our goal is to reach a generation capacity of 1,000 MW by 2030, which will require large-scale investments over the coming years.
Solar and battery parks generate greater returns when managed wisely. What kind of change do you expect as a result of interfacing your assets with Algo?
Our main reasons for adopting Algo were practical: we wanted to find additional cash flows for our existing generation portfolio while also contributing to maintaining the frequency of the electricity system. Participating in the flexibility market enables us to do both.
However, in order to take part in the market, it is essential to establish a rational chain between the solar parks and the electricity system operator, as well as to meet specific participation requirements. We wanted a solution that would help us meet these conditions without excessive manual work or co-ordination. We are now testing Algo as a solution.
In the future, we would like to be able to export data directly from the Algo environment so that we can use it more effectively in our analyses.
How do you see the future of energy in Estonia?
I believe that the most feasible and affordable energy solution for Estonia in the future will be based on solar and wind energy generation combined with modern storage technologies. This approach will ensure the achievement of Estonia’s climate goals and keep energy prices affordable for both households and businesses. Our aim is to contribute to the well-being of our people, a clean living environment, a diverse natural environment and energy security.
*The flexibility market is a mechanism for balancing the electricity system, designed to keep generation and consumption in the network balanced. To participate in the flexibility market, market participants must be ready to respond with their assets within a set time frame and to maintain capacity for a certain period. In other words, participants increase or decrease generation or consumption to help keep the frequency stable and are compensated for doing so.
