Baltic, Energy, Estonia, Investments

The first one of them is planned to be launched in the beginning of 2012 in Patkula, Helme parish, the Valga County. According to the business plan, the next two would be built in Launkalne and in Incukalns in Latvia. The fourth one should be built in Imavere, Järva County in Estonia and fifth in Alytus in Lithuania.

"The electricity capacity of a plant built by us is, depending on location, 5-8 MW and heating capacity 12–20 MW, planned efficiency is over 75%," Graanul Invest Board Chairman Raul Kirjanen recently introduced the plans in a letter sent to Estonian Economy and Communications Minister Juhan Parts.

The company intends to use as fuel mostly residues of forest-felling like branches, hacked timber etc. Graanul Invest needs electricity and heating stations to get heating energy to produce wood granules. But since electric energy is also produced this way and according to current regulations, the state supports it with renewable energy subsidies, selling electricity would be financially viable also.

Recently however the Estonian Consumer Protection Board completed an analysis on renewable energy subsidies which states that the state over-subsidises the sphere and should cut support.

Graanul Invest Board Chairman now complained to minister Parts that since the company has made spending for the Helme plant already and received finances for the project from abroad, the possible cutting of state subsidies creates insecurity.