Eesti Energia 2025: strong operating result, net loss due to the impairment of oil shale assets

The year 2025 was a turning point for the Eesti Energia Group – both the electricity market and the Group’s structure and business model changed. The transition of the energy system to the Continental Europe synchronous area, periods of low prices in summer, and regional interconnection and cable faults altered the functioning of the market and increased price volatility.

‘In the changed environment, we adapted our business model and the Group’s structure in 2025 to reflect the market situation. In the new financial year, we can focus on restoring our investment capacity in order to ensure the necessary developments in generation capacity and the security of supply of the energy system in the longer term,’ commented Marlen Tamm, CFO of Eesti Energia.

Last year, the Eesti Energia Group earned €317 million in EBITDA, demonstrating the strength of its core operations even in a changing market environment. At the same time, oil shale-related assets were impaired for the third consecutive year, resulting in a net loss of €83 million. Without the impairment of oil shale assets, Eesti Energia would have reported a net profit of €112 million.

‘The competitiveness of fossil fuel-based generation is increasingly influenced by the level of CO₂ prices, energy policy directions and the expectations of capital markets. When assessing the carrying value of production assets, we rely on long-term forecasts that take into account the uncertainty related to global market prices of liquid fuels,’ said Marlen Tamm.

Commenting on the financial results, Andrus Durejko, Chairman of the Management Board of the Group, added that 2025 was a year of transformation for Eesti Energia, with the primary objective being the restoration of investment capacity. ‘We adapted the organisation in order to be more flexible and competitive in a changing energy market,’ said Durejko, adding that making investments is challenging in the current market situation.

‘We see that among the Baltic states, Estonia had the highest energy dependence, ie the share of imported electricity, last year, reaching 40 per cent of consumption. Money spent on electricity imports could remain in the Estonian economy. If we wish to reduce peak prices and dependence on production in other countries, we must build new generation capacity – dispatchable plants, wind farms and storage facilities. The electricity deficit cannot be eliminated by the market alone – revenue certainty and long-term clarity are needed to ensure that the necessary decisions are taken before the Narva oil shale power plants, which have exceeded their service life, are permanently shut down,’ added Durejko.

The share of renewable energy in the Group’s electricity production increased to 62 per cent last year. The portfolio increased by 335 megawatts (MW) of wind capacity and 74 MW of solar capacity, making Enefit, a subsidiary of the Eesti Energia Group, the largest wind energy producer in the Baltic states.

Last year, Estonia’s largest renewable energy park, Sopi-Tootsi (329 MW), was also opened. ‘The park, built on a former peat extraction site, has become a good example of revitalising local life and the economy, in addition to the fact that wind farms provide consumers with the most affordable electricity,’ said Durejko. In 2025, the subsidiary Enefit additionally paid €0.3 million to the community in wind turbine fees.

In Lithuania, Kelmė I (80 MW) was completed, and generation began at Kelmė II wind farm with a capacity of 87 MW. In Latvia, the Carnikava Dzērvese and Carnikava Austrumi solar parks, with a total capacity of 17 MW, were completed, and in Poland construction began on the 45 MW Strzałkowo solar park.

A total of 1.8 terawatt-hours (TWh) of electricity were generated at wind farms, which is 8 per cent more than a year earlier. The Group’s total electricity production amounted to 3.6 TWh.

Last year, the Group invested €182 million in the reliability and development of the Estonian distribution network. As a result of investments by the distribution network operator Elektrilevi, faults in Saaremaa’s medium-voltage network, for example, decreased by more than half.

In February 2025, the Baltic states were synchronised with the Continental Europe synchronous area, which increased the independence of the energy system but also brought greater responsibility for maintaining system balance. Immediately before the Baltic electricity networks were connected to Continental Europe, Eesti Energia commissioned a 53.1 MWh energy storage facility in Auvere, Ida-Viru County, which helps to maintain grid frequency and reduce price spikes in the electricity market.

The Group’s revenue for 2025 amounted to €1,647 million and EBITDA amounted to €317 million. The net loss was €83 million.

The result was primarily affected by the decline in average electricity prices, the impact of an increase in the number of low-price hours, and high price volatility, which reduced generation margins. Planned maintenance at power plants also temporarily limited production volumes.

At the same time, following desynchronisation, the market for system services opened, creating an additional revenue opportunity for various production assets. In the new market, battery storage facilities, wind and solar parks, as well as dispatchable oil shale units, can earn revenues, which increases the flexibility of the portfolio and diversifies the Group’s revenue base.

Eesti Energia began 2026 with an updated management structure. Business activities have been consolidated into three subsidiaries: Enefit, which brings together the electricity business; Enefit Industry, the industrial business; and Elektrilevi, the distribution network business. The purpose of the changes is to increase flexibility, clarity and accountability, and to strengthen the Group’s position as a regional energy company.