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Estonia's state-run energy group Eesti Energia has won the transmission system operator Elering's tender for supplying natural gas to the Kiisa standby power plant.
Estonia: Elering to buy natgas for standby power plant from Eesti Energia
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The public procurement tender attracted bids from Eesti Energia and the natural gas importer and distributor Eesti Gaas. A tender condition was the best price per kilowatt-hour, fixed until the end of 2013, Elering said.
Only Eesti Energia's bid, 0.03369 euros per kWh, met the tender conditions. The offer of Eesti Gaas did not qualify because the price of gas was tied to a price formula.
Natural gas is the principal fuel for the standby power plant but it can also use diesel fuel. If necessary the plant can instantly switch from gas to diesel fuel.
Depending on calorific value, the plant consumes approximately 230 cubic meters of natural gas to produce one megawatt-hour of electricity. When both phases of the Kiisa plant are working at full capacity it will use about 60,000 cubic meters of gas per hour.
The first phase of the Kiisa standby power plant with a capacity of 110 MW was finished this spring and it is currently in the trial period.
The second phase is scheduled to be completed by fall 2014. The total capacity of the plant representing an investment of more than 130 million euros is 250MW.