Eesti Energia is testing an innovative solution for power system regulating capacities to participate in the Finnish energy market.

The Estonian energy company plans to connect its Auvere power plant and wind farms through a virtual power plant platform into a fast-reacting energy reserve that can support Finland's energy security and security of supply.

It is testing the innovative digital solution in cooperation with the Finnish system operator Fingrid through the system operator Elering.

It is hoped that participation in the Finnish energy market will help Estonia to prepare for connection to the continental European power network.

The smart use of existing assets to ensure security of supply will help prevent further investments, according to the company.

In five years Estonia will disconnect from the Russian electric power system and connect to the continental European one.

This leads to a need for flexible and responsive energy production equipment that can be activated in real time by using digital solutions. However the company said the market for that service was not expected to emerge in Estonia and the Baltics until 2025.

According to Margus Vals, Member of the Management Board of Eesti Energia, participation in the Finnish energy market would enable to gain valuable experience that could be used already in a few years’ time in Estonia to ensure energy security and security of supply.

"In order to ensure security of supply after joining the European power system, it is necessary to smartly make maximum use of the suitable existing assets, such as power plants and wind farms, and in the future, also equipment and storage units belonging to consumers, such as electric cars," he said.

"Therefore, in cooperation with the Finnish system operator Fingrid and Elering, we are testing an innovative solution, combining traditional and new electricity generation assets, which are 100% digitally managed thanks to Eesti Energia's innovative Virtual Power Plant.

"The Virtual Power Plant will soon enable us to offer added value to our Finnish customers through smart solutions."

In practice, this means that if there is a demand for regulating capacity in Finland, it will shortly be produced in Eesti Energia's power plants thanks to the new solution and will be transported via the Estlink 1 submarine cable to Finland, using the available transmission capacity.

If, however, there is too much energy in Finland, its power plants will be able to quickly balance it by reducing their production capacities, according to Eesti.

Fingrid Oyj Vice President Asta Sihvonen-Punkka said: "The Finnish and Estonian transmission system operators Fingrid and Elering have worked to enable market participants in both countries to participate in the automatic frequency restoration reserve market (aFRR) across borders.

"Demand for the regulating reserve is growing due to the transition to a green energy system. We value cooperation with the Estonian market where we have achieved specific results."

The tests required to carry out the pilot project will start before the end of the year, and the readiness to provide an automatically activated reserve capacity service to the Finnish energy system should be reached by next spring.

In addition, Eesti Energia is preparing to enter the Finnish market with a virtual power plant service for industrial customers.

It is hoped this will speed up the green and digital revolution by making large equipment consuming and generating electricity make money for customers, reducing energy costs and enabling more renewable energy in the market.