elektrituru

Elektrituru is the Estonian term for the electricity market, the system through which electricity is produced, traded, and delivered to consumers. It includes wholesale and retail segments and interacts with the transmission and distribution networks, the market operator, and the regulator. The goal is to allocate generation and consumption efficiently while maintaining security of supply.

In the wholesale market, electricity is produced by power plants and traded between producers, traders, and suppliers on market platforms or through bilateral contracts. The retail market serves final customers who purchase electricity from suppliers, often with the option to choose among multiple providers. Price formation generally reflects generation costs, fuel prices, weather, and system constraints, while transmission and distribution charges and taxes are added as separate components.

Market operations usually involve day-ahead and intraday trading to match expected demand with supply, as well as a balancing market to keep the grid balanced in real time. The transmission system operator and, in many cases, the distribution operators are responsible for delivery and system reliability, while a national or regional regulator oversees competition, consumer protection, and compliance with rules. Cross-border trading and regional market integration are features of many elektrituru frameworks, enabling price convergence and better use of generation resources, including renewable energy sources.

Regulation and policy: The elektrituru operates under national energy laws and EU directives aimed at liberalization, unbundling of generation from transmission, consumer rights, and support for decarbonization. Reforms since the late 20th century have aimed to increase competition, improve reliability, and promote renewable energy deployment, with ongoing developments in market design and price signals.