2025.05.20 Andrus Durejko

Slide 1:Andrus Durejko Chairman of the Management Board, Eesti Energia / Enefit GroupLessons learned from the Baltic States’ recent desynchronization from the BRELLSlide 2:2Eesti EnergiaEesti Energia is a vertically integrated energy company operating in the Baltic Sea region.Provides useful and convenient energy solutions and produces energy in an increasingly environmentally friendly way.ProductionServicesThermal power plantSolar parksWind farmsHydro electric plantCombined heat and power plantSolar solutions with storageHigh-speed internetElectrical worksElectricity packagesElectric car charging solutionLighting solutionsHeating and cooling solutionsSmart consumption managementWind farmsLiquid fuels plantSolar parksSolar parksWind farmsShare of assets1Share of revenue1<1%0%79%45%1%10%16%17%1%19%Note: 1) As of 2024. Energy is also sold and assets are held to a lesser extent outside the countries highlighted.2024 in numbersElectricity salesHeat salesShale oil salesDistribution network10.4TWh435thousand tonnes1.0TWh61 200kmRevenueInvestmentsEBITDAEmployeesEUR 1 800millionEUR 398millionEUR 724million4 908Slide 3:3Business segmentsDistributionRegulated electricity distribution networkProduction of liquid fuels from oil shaleElectric vehicle charging network, solar and storage servicesThe distribution network covers 95% of Estonia451 000 tonnes of shale oil produced in 2024New shale oil plant scheduled to launch in 2025Approx. 600 000 customersOver 1 000 EV charging pointsShale oilOtherRenewable energy and sale of electricityInstalled renewable energy generation capacity exceeds 1 000 MWGeneration and retail sale of renewable electricity10%50%17%11%Ensures security of energy supply in EstoniaNon-renewable electricityElectricity production in thermal power plants11%% share from revenue, 2024Slide 4:We Depend on Expensive Imported Energy. Estonian viewESTONIA | FINLANDImport | Export | Import | ExportQuantity, MWh | 3 209 246 | 44 655 | 7 511 091 | 2 995 287Share of consumption, % | 40,18% | 0,56% | 9,01% | 3,59%Share of production, % | 66,54% | 0,93% | 9,53% | 3,80%Weighted average price, €/MWh | 92,0 | 60,1 | 79,3 | 11,3Number of hours | 8295 | 531 | 5489 | 3414Slide 6:Situation 08.02.2025BATTERY MARKETSNordpoolDay ahead | IntradayEleringFCR capacityaFRR capacity | aFRR energymFRR capacity | mFRR energyReactive powerSlide 7:We Were Not Marketwise Ready for SynchronizationWe had technical, but not market readiness. Now we’re learning by doing and undermining our competitivenessSlide 8:Baltic Balancing Capacity MarketmFRR procurement began on 5 Feb; start of aFRR procurement postponedTSO assets cover ~190 MW (40%) of upward mFRR needs.aFRR procurement launched on 16 Apr; demand halved to ~60 MW, clearly dimensioned to specific providers.From 23 April Elering increased by an additional 60 MW mFRR up and 40 MW mFRR down capacity its orderA large HPSP fulfills major mFRR capacity demand in both directions.FCR demand of 23 MW is small, market to become saturated.Lack of volumewise divisible and flexible energy offers resulting from balancing capacity procurement to drive up imbalancing prices and costsEstonian TSO intervention lowered reserve prices but a large share of available flexible small reserves remained unmonetized.Slide 9:One, not fully functional Market for 3 Baltic statesAuvere BESS only new assetDemand is higher than offeringMarket is highly sensitiveAbnormally high pricesHigh volatilityCosts higher than expectedSlide 10:Reserve Capacity outlook in Baltic AreaSlide 11:The Way Forward: We’re Too Small to CompeteLet's think ahead together, not just one step, but at least two stepsWe need to coordinate choices and important decisionsThere is no need to build together, common choices are enoughThe cost-sharing principles should be uniform across all three countriesSlide 12:Unlocking the Future: Uniting Proven Tech With Emerging InnovationAdditional storage assets to take most out of renewablesNatural gas and biomass as transitional fuelsFunctioning flexibility marketsIdentify the most promising future technologies, such as fusion and SMRs