NRG Energy and the Estonian cabinet have agreed the terms under which NRG may buy a 49 per cent interest in Narva Power. Narva owns around 3000 MWe of oil shale fired generation plants and a 51 per cent interest in state-owned oil shale mines, Eesti Polevkivi. State-owned Eesti-Energia will retain 51 per cent of Narva.
The terms of the purchase include a commitment by Narva Power to invest $361 million for reconstructing and refurbishing the generation plants and making environmental improvements. NRG Energy will make an initial $65-70 million equity commitment.
Narva Power’s two stations, Balti and Eesti, currently supply more than 90 per cent of Estonia’s electricity.
