Estonia to reduce Kiisa power plant’s role in Baltic reserve market

Estonian transmission system operator Elering will reduce the Kiisa power plant’s participation in the Baltic frequency reserve market by another 100 MW from May 1, 2027, while preparing to lease the 250 MW facility to a private operator.

The decision will reduce Kiisa’s available upward manual frequency restoration reserve (mFRR) capacity from 225 MW to 125 MW, following an earlier 25 MW reduction in July 2026.

Elering says the number of reserve service providers has increased by 185%, while the volume of offers has grown by 75%, reducing the need for the system operator to supply reserve capacity itself. The withdrawal will create more room for private providers, including battery storage operators, although greater reliance on market-based reserves may increase procurement costs.

From May 2027, Estonia’s balancing capacity charge will be €3.89/MWh, compared with €3.73/MWh in 2026. A lower rate of €2.97/MWh will apply during the first four months of 2027.

Elering expects to make the Kiisa plant available for lease by late 2027. Under private operation, the facility could also participate in the day-ahead electricity market, supplying power during periods of high prices.

Sources: Elering, 30 October 2026; Elering, 30 June 2026.