Eesti Energia increased its renewable energy production and earned a net profit of EUR 19.3 million

In 2020, Eesti Energia earned EUR 213.6 million in EBITDA and EUR 19.3 million in net profit with sales revenue of EUR 833.7 million.

The energy group's sales revenue decreased by 10%, EBITDA by 18% and net profit by 45% compared to 2019, primarily due to lower energy demand caused by the COVID-19 pandemic.

“Despite the unfavourable operating environment, we were able to increase the production of renewable energy and the sales volume of our energy portfolio, bring new, useful and convenient energy solutions to our customers and end the year with a profit thanks to a strong result in renewable energy," commented Andri Avila, Member of the Management Board and CFO of Eesti Energia.

“It was a serious challenge, because a tenth of Eesti Energia’s employees tested positive for the coronavirus over the year. Nevertheless, we were able to ensure a smooth operation of vital services and be a reliable partner for our customers even in the most difficult times - we help keep the lights on and the rooms warm,” Avila added.

Restrictions imposed in the health crisis led to a sharp decline in society's energy demand in the spring of 2020, and an exceptionally warm year further reduced consumption during the winter months. At the same time, the abundance of Nordic hydropower kept supply high and led to low electricity prices in the Nord Pool market.

The stock exchange price of electricity decreased year-on-year in all of Eesti Energia's home markets. The average annual price in the Estonian price area was 33.7 €/MWh (-27%), in Latvia and Lithuania 34 €/MWh (-26%), in Finland 28 €/MWh (-36.4%) and in Poland 46.8 €/MWh (-12%).

In 2020, Eesti Energia sold 7.8 TWh of electricity, 2 TWh of gas, 0.9 TWh of heat and 5.1 TWh (461,000 t) of liquid fuels. The total volume of energy sales increased by 0.7 TWh or 4% over the year.

Eesti Energia produced 3.8 TWh of electricity, 1.1 TWh of heat, 5.1 TWh (452,000 t) of liquid fuels. The total volume of energy production decreased by 15% year-on-year due to reduced oil shale electricity production.

Renewable electricity output accounted for 1.5 TWh, i.e. 40% of the 3.8 TWh of electricity produced in 2020. Renewable electricity production increased by a fifth over the year: wind power production increased by 11% to 1.14 TWh and renewable energy produced in thermal power plants increased by 33% to 243 GWh.

Eesti Energia produced 1.9 TWh of renewable energy - electricity and heat - in total. It accounted for 38% of the group's total electricity and heat output.

The reduction of the carbon intensity of energy production in 2020 led to a 35% decrease in Eesti Energia's CO2 emissions compared to 2019, decreasing from 5.9 million tons to 3.8 million tons. Compared to 2018, its carbon footprint has decreased threefold.

The group's investments increased by 35% over the year to the level of EUR 183.8 million. The lion's share of this, i.e. EUR 95 million, were investments in improving the quality of the distribution grid - the share of weatherproof grid has now grown to 70%.

In 2020, Eesti Energia completely wrote down the value of its three oil shale power plants with older technology in the total amount of EUR 23 million and wrote up the value of Auvere Power Plant in the amount of EUR 36 million.

"Our older oil shale power plants are at the end of their technical life and rarely access the market due to the high CO2 price resulting from the climate policy, but they continue to be important in ensuring a reserve for steerable electricity generation.

Auvere Power Plant is the most efficient steerable electricity generation capacity in Estonia that can use various fuels already now. This year, we plan to further modify it so that the share of oil shale in the fuel mixture would be only 20 percent. We see the future of the power plant in providing system services, among other things. This will increase the competitiveness of Auvere," Avila explained the revaluation of assets.

Avila said that 2020 was a volatile and challenging year in the energy markets, but as a result of the restructuring of the group, Eesti Energia has been able to adapt to the rapidly changing circumstances, which allows it to remain competitive in the new situation.



Electricity sales


8 644

**7 840**

Electricity distributed


6 878

**6 706**

Shale oil sales

th t



Heat sales




Gas sales



**2 038**

Electricity production


5 549

**3 808**

Heat production


1 150

**1 087**

_share of renewable energy (electricity+heat)_




Shale oil production

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Sales revenue

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Operating profit

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Net profit

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Cash flow from operating activities

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The annual report is available on the company's [website](/en/ettevottest/aastaaruanne).