Eesti Energia to Consolidate Electricity Business Under Enefit Subsidiary in 2026

Strategic Consolidation for Enhanced Competitiveness

Starting in 2026, Eesti Energia AS, Estonia's state-owned power generator, will consolidate all its electricity-related business activities into its subsidiary, Enefit OÜ. This comprehensive reorganization includes retail sales, renewable energy production, energy trading, and development, but specifically excludes non-renewable electricity production and reserve power units. The primary objective of this merger is to strengthen the group's competitiveness, improve management efficiency, and boost profitability.

As part of the restructuring, Enefit Green AS and Enefit AS will merge to form the new Enefit OÜ. Central business units previously operating under the Eesti Energia AS umbrella, such as energy trading and energy solutions development, will also be transferred to the newly created entity. Andrus Durejko, Chairman of the Management Board of Eesti Energia, emphasized the necessity of this integration, stating, 'In a highly competitive and rapidly evolving energy market, only strong energy companies with integrated production and sales portfolios can succeed.' He added that '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.'

Expanded Reach and Renewable Energy Focus

The newly consolidated Enefit will serve a substantial customer base of over 560,000 retail customers across Estonia, Latvia, Lithuania, and Poland. This regional expansion will see the merger of Enefit Green and Enefit entities extended to these countries in 2026, establishing a unified brand presence.

A significant aspect of this consolidation is the integration of Enefit Green's renewable generation capacity, which includes 1,200 MW. Enefit Green currently operates a portfolio of 592 MW from wind, solar, waste-to-energy, and hydropower plants, with an additional 631 MW of wind and solar farms under construction. The new entity's portfolio will also encompass key assets such as the Auvere battery storage facility and the Iru cogeneration plant, alongside future production and storage projects. This move follows Eesti Energia's recent full acquisition and delisting of Enefit Green AS from the Nasdaq Tallinn exchange on August 1, 2025, a transaction valued at over 200 million euros aimed at full reintegration.

Industrial Sector Reorganization and Future Outlook

In the industrial sector, further restructuring will occur: Enefit Solutions, specializing in design, production, and maintenance, will merge with Enefit Industry, which handles liquid fuels and operates mines. Enefit Power, responsible for running reserve plants, will become a subsidiary of Enefit Industry. However, Elektrilevi, the distribution network firm owned by Eesti Energia, will continue to operate independently. The company has assured that these changes will not affect the validity or fulfillment of customer contracts with its subsidiaries.

This strategic realignment supports Eesti Energia's broader goals, including achieving carbon-free electricity production by 2035 and establishing a carbon-neutral chemical industry by 2040. The group aims to significantly increase its renewable electricity production, targeting 5 terawatt-hours (TWh) by 2026, a substantial increase from 1.5 TWh in 2021. This ambitious plan involves investments of approximately 2 billion euros in development projects between 2022 and 2026, with a large portion dedicated to wind and solar park developments.