Battery storage allows electricity to be saved for later use or sold back to the grid when prices are high. But renewable energy companies say changes to transmission system operator (TSO) Elering's transmission fee structure will make battery storage significantly more expensive in Estonia.

Mihkel Annus, head of regulatory affairs at Enery Estonia, said the changes could deter investment.

"Battery storage helps lower electricity prices for consumers, and everyone ultimately benefits from more storage being deployed in Estonia," Annus said, noting that thanks to Lithuania's network fee structure, using batteries is several times cheaper there.

He warned that higher costs here at home could mean that "investments the system needs and consumers benefit from will naturally bypass Estonia."

Elering CEO Kalle Kilk said the changes are not specifically aimed at battery owners. Instead, they reflect a broader restructuring of fees, shifting the balance between capacity charges and electricity transmission charges.

Battery owners are exempt from the latter, but the costs associated with their use of the grid remain.

Elering CEO: This is the fairer approach

Kilk said Elering had to choose between making other customers cover those costs or redistributing charges so each customer pays for the costs they incur. 

"I think this is the fairer approach," he said, adding that the Competition Authority has already approved the new structure as well.

Energy companies have also raised their concerns with the Ministry of Climate. Energy and Environment Minister Erkki Keldo (Reform) said he understood the need for more battery parks to lower electricity prices and reduce price spikes, but Elering also needs to cover its costs and invest in the grid.

"I'll look into whether we can strike a balance that allows Elering to collect its network fees and invest in the grid without making new battery parks too uncompetitive," he said.

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