The procurement, launched a year ago, seeks to contract new generation and storage capacity to help balance the power grid. Interest in the tender has been strong, with Elering receiving 163 questions from potential bidders.

The first deadline extension came last November, following changes to the Electricity Market Act which fixed grid connection fees — shifting part of the cost from producers to consumers. The latest delay is due to updated grid connection terms, which were only approved by Estonia's Competition Authority on June 27.

"We wanted the new conditions and prices to already be in effect at the time bids are submitted, in order to reduce risks for bidders," explained Elering communications director Ain Köster.

The procurement terms require that the reserve capacity come from new production or storage units that can later be converted to renewable fuels.

Estonia, Latvia and Lithuania have secured a special exemption from the European Commission allowing it to procure reserves up to eight years in advance — through 2033 — instead of the usual one-day limit under EU law.

Once the contracts are in place, Elering will begin compensating winning bidders for guaranteed capacity as soon as they enter the frequency reserve market.

Costs will be covered through balancing charges paid by electricity sellers and producers, while Elering remains financially neutral.

Most of the resulting revenue will benefit electricity generation and storage operators in the Baltics.

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