Energy Policy, Legislative Background, Funds and Programmes
Energy policy
The 1997 energy law (Energy Act or, since 2003, Electricity Market Act) liberalised the electricity and gas markets. The law affirms the principle of third party access to the network, even if at present it remais very theoretical. The law was amended in 2007 to introduce a new support scheme for renewable energy sources and in January 2010 to limit the application of regulated electricity prices to non-eligible customers.
[Enerdata]
The Plan 'Long-term Public Fuel and Energy Sector Development Plan until 2015' is based on the Sustainable Development Act and is the major strategy document directing the development of the Estonian fuel and energy sector until 2015.
The policy document regarding the development of Estonia’s energy and electricity generation until the year 2015 introduced strategic guidelines and the main goals of the Government of Estonia in the field of energy.
According to the guidelines domestic consumption needs shall be covered by domestic electricity production capacity. The aim is that the share of renewable energy resources will reach 5.1% of the electricity gross consumption in 2010, decreasing the share of oil shale as the main local fuel from a long-term perspective. In order to increase the efficiency of the power plants and fulfil the environmental requirements, the production of oil shale energy/electricity will be transferred to fluidised bed technology. Current electricity and heat co-generation capacities will be preserved and the establishment of new CHP (combined heat and power) plants in regions with adequate heating needs are favoured. The proportion of co-generated electricity must increase from 13% to 20% of the electricity gross consumption by the year 2020.
The Plan is also backed by two short-term strategies (2007-2013): the development plan for enhancing the use of biomass and bioenergy and the energy conservatin target programme.
RES Policy andTargets
National Commitments
The "Long-term national development plan for the fuel and energy sector until 2015" adopted through a decision of the Parliament on 15 December 2004 set a target for biofuel of 2% by 2006 and 5.75% by 2011, calculated on the basis of energy value.
- 12 % of gross national energy consumption by 2010. The target is already achieved due to high share of wood and wood waste for heat production
- 5,1% of gross national electricity consumption by 2010 and 8 % by 2015
[EREC]
Energy Efficiency
Energy efficiency and a conversion to renewable energy sources are important in Estonia as approximately 92% of power is still produced based on polluting fossil fuel – oil shale. This in turn emphasizes the importance of energy saving and energy efficiency as the carbon emission factor is very high. Current priorities are to decrease the utilisation of oil shale through renewable energy and energy efficiency. The energy conservation potential is assessed to be relatively very high (up to 30%) compared to the EU-15.
Energy Efficiency Action Plan
The Energy Efficiency Plan for 2007-2013 is the Development Plan which describes Estonian's Governments action in a specific energy policy area - fuel and energy efficiency-, as approved by the Government of the Republic.
The present Estonian National Energy Efficiency Action Plan for 2009-2013 gives an overview of previous and current policy measures to promote energy efficiency among small-scale energy users. Programmes for improving the Estonian energy industry have been continuously implemented since the regaining of independence. For example, investment support has been given to local authorities for the modernisation of district heating systems and buildings under their management, as well as for the redevelopment of apartment buildings within the framework of the national housing policy, and for the development of housing funds by local authorities. The energy intensity of the economy has declined rapidly, but total energy consumption continues to grow.
The main problems that have prevented the development of more efficient use of energy include relatively low energy prices, fragmented energy conservation potential, lack of attention to energy efficiency in public procurement, lack of experts, increased standard of living and limited awareness of consumers.
The Estonian National Energy Efficiency Action Plan for 2009-2013 focuses on four policy areas.
- Availability of information: improving the awareness of energy consumers, e.g. through supplying theinformation in energy bills, websites, as well as special measures for local governments and SMEs.
- Availability of skills and experts: increasing the number of people able to implement energy saving measures, e.g. promotion of market for energy audits, development of know-how, practice of energy services
- Promotion of investments in energy efficiency through direct grants, obligations to energy suppliers and instruments improving the attractiveness of energy efficiency investments.
- Fulfilling the obligationsto the EU: transposition of EU directives on energy efficiency and preparing for actions under the Commission’s Energy Efficiency Action Plan.
[Ministry of Economy, EC NEEAP Estonia]
Further relevant legislative framework:
- Estonian electricity sector development plan 2005-2015 (Ministry of Environment)
- Estonian national sustainable development strategy 'Sustainable Estonia 21' (Strategy Office of the State Chancellery)
- Estonian Environmental Strategy until 2030 (Ministry of Environment)
- Estonian Housing Development Plan 2007-2013
- Transport Development Plan 2006-2013 (Ministry of Environment)
- National Programme for decreasing Greenhouse Gas Emissions 2003-2012 (Ministry of Environment)
- National Strategy for the use of Structural Funds 2007-2013
- National Development Plan for the use of Oil Shale 2007-2015
