Low market prices reduced Eesti Energia’s half-year profit

The Eesti Energia Group generated €387.8 million in revenue and €33.1 million in normalised net profit in the second quarter. The quarter was characterised by record output from wind farms, declining investments and lower revenue due to low electricity prices.

The group’s Chief Financial Officer, Marlen Tamm, explained that the results were primarily affected by the changed situation in the energy market. ‘With the support of the new wind farms and solar parks built over the past year, we produced a larger volume of renewable energy than a year ago, which is lowering electricity prices and having a positive impact on consumers’ electricity bills. At the same time, lower market prices mean reduced revenues for energy companies. Such a market situation does not favour investment in new electricity generation capacity,’ Tamm explained.

‘Low market prices and large price fluctuations have become the norm in the energy market, and this volatility is expected to persist in the coming years. This requires energy companies to adapt, which is why Eesti Energia has already taken steps towards building an integrated energy group. The renewable energy, dispatchable generation capacity, battery solutions and customer portfolio that have been brought together under one group enable us to enhance our competitiveness in the new market situation,’ Tamm added.

In the second quarter, the Eesti Energia Group produced 876.8 gigawatt-hours (+16%) of electricity, of which 551.1 gigawatt-hours (+27%) came from renewable sources. This meant that the share of renewable energy in electricity production reached a record 63%, which is five percentage points higher than a year ago. The share of renewable energy has previously reached such a high level only in the fourth quarter of 2024.

The high output of renewable energy has also played a role in keeping electricity prices low. Compared to the second quarter of 2024, the average electricity price in Estonia fell by one fifth. The favourable prices and increased renewable energy output are due to consistently sunny and moderately windy weather. At the same time, wind farms contributed the largest share of renewable energy production, with the group generating 428 gigawatt-hours (+45%) of electricity. According to estimates, the Sopi-Tootsi renewable energy site, opened in the second quarter, will in future cover approximately one tenth of Estonia’s total consumption.

The company invested €120 million in the second quarter, which is 43% less than in the same period last year. According to Tamm, the decline in the volume of investments is mainly due to the company having reached the end of a major investment cycle and now focusing on launching development projects. Investing in new production assets is also becoming increasingly difficult, as falling market prices reduce the profitability of projects.

The focus of investments in the second quarter remained on renewable energy and network development. More than one third of the investments (€45.3 million) were made by the group’s subsidiary Enefit Green in the development of renewable energy, while nearly another third (€37.8 million) came from the network operator Elektrilevi’s investments in the development of the electricity network service.

Tamm confirmed that preparations are also continuing for the investment in a gas power plant with a 100-megawatt hydrogen capacity.

The Baltic system services market, which opened at the beginning of the year, has created a new revenue stream for the group. In the second quarter, €33 million in EBITDA was earned from flexibility services, the largest share of which came from the Auvere battery storage facility completed in February.

‘Although the drop in electricity market prices has reduced the revenues of energy companies, the system services market opened in February helps to ease the situation by creating additional earning opportunities,’ Tamm explained.

According to Tamm, it is also reassuring that renewable energy is no longer an uncontrollable source dependent on weather conditions. Enefit Green’s wind and solar farms are also being used to help ensure the stability of the electricity network.

The group’s revenue for the second quarter amounted to €387.8 million, down 7% compared to last year. The group’s normalised EBITDA, or earnings before interest, taxes, depreciation and amortisation, amounted to €82.8 million. The group’s normalised net profit amounted to €33.1 million.

In the second quarter of 2025, Eesti Energia paid a total of €23.1 million in taxes and environmental charges to the state. In addition, CO₂ emission costs at market price amounted to €40 million.

*Normalised result that does not include the revaluation of derivatives

*Normalised result that does not include the revaluation of derivatives