Eesti Energia to merge entire electricity business under Enefit subsidiary
Starting in 2026, state owned power generator Eesti Energia is to merge all electricity business areas into its subsidiary Enefit.
Eesti Energia says the move will offer electricity at more competitive prices, boost profitability and restore investment capacity for the scope of development of new energy production.
Enefit Green AS and Enefit AS will be merged into one company, Enefit OÜ, and central units which up to now had operated under the Eesti Energia AS umbrella, such as energy trading and energy solutions development, will be transferred to the newly created company.
In the industrial sector, Enefit Solutions, focused on design, production, and maintenance, will merge with Enefit Industry, which produces liquid fuels and operates mines; Enefit Power, running reserve plants, will become a subsidiary of Enefit Industry.
Distribution network firm Elektrilevi, owned by Eesti Energia, will continue to operate independently.
Eesti Energia says the change does not affect the validity and fulfillment of customer contracts with its subsidiaries.
"In a highly competitive and rapidly evolving energy market, only strong energy companies with integrated production and sales portfolios can succeed," said Andrus Durejko, Chairman of the Management Board of Eesti Energia. "Bringing together all electricity operations into a unified structure is a logical continuation of the full reintegration of Enefit Green into the group. This allows us to deliver the best service to our customers and strengthen our position in our home markets."
Next year, Enefit Green and Enefit will also be merged into a company under the Enefit brand in Latvia, Lithuania, and Poland.
"Eesti Energia's mission is to ensure shareholder value and energy supply that supports economic sustainability and aligns with the European Union's energy and climate policy objectives," said Anne Mere, Chair of the Supervisory Board of Eesti Energia. "The simplification of the governance model and the establishment of robust business lines represent a strategic step toward fulfilling the expectations set for the group and achieving its commercial objectives."
The new Enefit will serve over 560,000 retail customers across Estonia, Latvia, Lithuania, and Poland, and include Enefit Green's 1,200 MW of renewable capacity, the company says. Its portfolio will include the Auvere battery storage facility, the Iru cogeneration plant, and planned future production and storage projects.
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Editor: Andrew Whyte, Mirjam Mäekivi
