What happened
Solar parks in Estonia are causing electricity prices to drop, but may lead to higher transmission charges. The country's largest solar park, located at the former Raadi military airfield, has begun operating with a capacity of 74 megawatts. However, the park's profitability is at risk due to summer sunshine and falling electricity prices.
According to researchers, the increased production of electricity from solar parks drives down wholesale prices, but also adds complexity to the grid, potentially leading to higher network fees. The main issue is the mismatch between when electricity is generated and when it is consumed, as excess energy produced during sunny periods cannot be easily stored for use during periods of high demand.
Energy storage is seen as a key solution to balancing the grid, and the government is relying on market prices to drive investment in this area. The Minister of Energy and the Environment, Erkki Keldo, suggests that building hybrid parks, which combine solar panels with battery storage, can help keep electricity prices reasonable even when the sun is not shining.
