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

BC, Tallinn, 02.08.2018.Print version
General Electric (GE), which struggled to hand over the Auvere power plant to the Estonian state-owned energy group Eesti Energia, has paid 106 mln euros' worth of contractual penalties due to the delay, informs LETA/BNS.

"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.

 






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