Enefit Power AS to Split into Two Companies: Enefit Industry AS and Enefit Power OÜ Starting April

As of April, Eesti Energia’s reserve power plants will continue operations under the new company Enefit Power OÜ, while the liquid fuels and circular economy units will operate under Enefit Industry AS. This restructuring enables the optimal and most profitable functioning of two distinct business areas for the owner, the Estonian state.

“Although the competitiveness of Enefit Power’s dispatchable generation capacities is limited, power plants play a crucial role in ensuring security of supply. A sustainable solution must be found for dispatchable power plants to maintain them as essential reserve capacity for the state. Enefit Power will continue to ensure that Estonian homes remain lit and warm, regardless of weather conditions or other producers,” said Raine Pajo, who will assume the role of Chairman of the Management Board of Enefit Power OÜ on April 1.

The management board of Enefit Power OÜ will consist of three members. In addition to Chairman Raine Pajo, the board includes Aleksandr Jefremov, responsible for electricity production, and Rauno Raju, responsible for finance. Enefit Power’s assets will include the Eesti Power Plant, Balti Power Plant, and Auvere Power Plant.

“This change, effective today, allows the large-scale industry with significant growth potential in both global and domestic markets to continue its development. The goal is to transition from liquid fuels production to higher-value products, such as raw materials for the chemical industry,” said Lauri Karp, who will lead Enefit Industry.

The management board of Enefit Industry will include, in addition to Chairman Lauri Karp, Hannes Reinula, responsible for liquid fuels production; Stanislav Ignatovets, responsible for the circular economy sector; and Tiit Hõbejõgi, responsible for finance. Enefit Industry will encompass the Enefit 140 and Enefit 280 liquid fuels plants, the under-construction Enefit 280-2 plant, as well as the Narva quarry, Estonia mine, and logistics unit.

The general meeting of Eesti Energia, represented by Minister of Finance Jürgen Ligi, approved the supervisory board’s decision to split the Eesti Energia subsidiary Enefit Power at the end of 2024. Of the current approximately 1,700 employees of Enefit Power AS, over 500 will continue working in the reserve power plant company Enefit Power as of April 1, while the remaining employees will join Enefit Industry, focusing on the development of the liquid fuels sector.