Estonia grants temporary shale oil permits to keep winter heating running

The Environmental Board approved temporary licences for Enefit Power in Narva and Utilitas in Tallinn to substitute natural gas with shale oil for district heating between November 1 and April 30, 2027. Shale oil’s lower price could help offset rising gas costs, but households will still bear the full cost of buying, moving and processing the fuel, so price relief may be limited. The board imposed detailed conditions, requiring the producers to track fuel volumes, operating hours and emissions, and to report any changes to the board.

Enefit expects to burn about 23,000 tons and Utilitas about 20,000 tons of shale oil, but both stress that the fuel will be used only when gas prices are high or supply is at risk. The Competition Authority set maximum district-heating tariffs at €84/MWh in Tallinn and €137.69/MWh in Narva, and the new permits aim to keep heating reliable while complying with EU emissions rules.