Utilitas produced 80% of its energy from renewable sources last year

Utilitas produced 2.5 TWh of energy in 2025, 80% of which came from renewable sources. A total of 2 TWh of heat was produced, and the sales of district cooling more than doubled compared to the previous year, reaching 8000 MWh.

Utilitas will continue to reduce the use of imported fuels with volatile prices by adding equipment operating from various local sources to its production capacities. By 2027, the share of fossil fuels will be reduced to less than 10 percent. The biggest contribution to the reduction will be made by the emission-free heat pump plant to be built in Paljassaare in Tallinn, which will cover nearly 20% of the heating needs of consumers in the capital.

“The Paljassaare heat pump plant, which uses heat from wastewater and seawater, will further increase the security of supply of the entire district heating system in Tallinn, reduce dependence on imported fuels to a minimum, and help ensure price stability. The construction of the plant is progressing at a high speed, all four large heat pumps have already been installed, and at the beginning of the next heating season, the plant will already provide heat to the grid,” described Priit Koit, CEO of the Utilitas Group.

In addition to the heat pump plant, Tallinn’s district heating network will be supplemented with thermal storage devices and electric boilers, which will add flexibility to the system and enables using the most economical production method at any given time. In order to control the increasingly complex system, Utilitas is implementing several new digital management systems, which will support making the best decisions and further increase efficiency.

In 2025, active connection to Utilitas’ efficient district heating continued: a total of 78 buildings were connected to the network in different cities during the year, including both new buildings and buildings switching heating methods. For example, last year, A. Le Coq Arena, the T1 shopping centre and the SEB headquarters started using Utilitas’ district heating, and several apartment buildings and public buildings also joined the network.

As a provider of vital services, Utilitas’ priority is the security of supply, which includes the modernisation of heating networks. In 2025, Utilitas built and reconstructed nearly 24 kilometres of heat pipelines. The largest works took place on Lastekodu Street in Tallinn, on the Paljassaare peninsula, and the district heating systems of Valga and Valka were connected across the state border.

Utilitas is also adding of new electricity production and storage capacities. In Lithuania, the 124 MW Telšiai wind farm, built by Utilitas Wind, was completed last year, and will be operated by Latvenergo after the testing period. In addition, the expansion of the battery park at the Targale wind farm in Latvia was completed, doubling the storage capacity to 40 MWh. In addition to the onshore wind farm developments in the three Baltic States, the company’s portfolio also includes the Saare-Liivi offshore wind farm, for which a superficies license was issued and the process of applying for a water permit was started.