Energy, Energy Market, Estonia
International Internet Magazine. Baltic States news & analytics
Friday, 29.03.2024, 05:34
GE paid EUR 106 mln in penalties to Eesti Energia for Auvere power plant delay
"The
penalties of General Electric due to
delaying to hand over the power plant totaled 106 mln euros. This sum is not
included in the sum of investments. The penalties cover the loss of revenue in
connection with the Auvere power
plant not being able to operate at full capacity on time," chief of
communications at Eesti Energia Monika Viidul told.
Even
without taking into account the penalties, the construction of Auvere power plant was 28 mln euros
cheaper than planned. "The power plant's investment totaled 610 mln euros,
which is 28 mln euros less than planned in the budget," she added.
While
initially the Auvere power plant was
planned to be handed over to Eesti
Energia in 2015, then due to the occurrence of various faults, it was
finally handed over to Eesti Energia
on Thursday.
From
November 2015 to the end of 2016 GE paid 68.6 mln euros in penalties, in 2017
30.9 mln euros and in 2018 nearly 6.5 mln euros.
The
capacity of the Auvere power plant is
300 megawatts and the plant uses an effective circulating fluidized bed
technology for energy production. The General
Electric group is to build the power plant on the basis of a
"turnkey" contract. The plant's efficiency is 40% and the plant
is able to use oil shale as fuel to the extent of 100%, biomass to the extent
of 50%, peat to the extent of 20% and oil shale gas to the extent of 10%.
The Auvere power plant can cover more than
25% of Estonia's electricity consumptions, or produce 2.2 terawatt-hours of
electricity in a year.