Supply: Energy Sources
Electricity
Production of Electricity in 2008 according to energy sources in Estonia, as compared to other countries in Central and Eastern Europe, Austria and the European Union 15
Per Capita Consumption of Electricity since 1988 in Estonia, as compared to other countries in Central and Eastern Europe, Austria and the European Union 15
There is a trend visible in the EU, that the demand for electricity is increasing more quickly than the total demand for energy. From the countries of Central and Eastern Europe shown in this figure, so far only Slovenia shows this trend.
Electricity balance - 2009 | TWh | % | |
|---|---|---|---|
GROSS PRODUCTION | 8.78 | 100.00 | |
Hydro | 0.02 | 0.23 | |
Nuclear | 0 | 0 | |
Wind | 0.19 | 2.16 | |
Thermal, of which | 8.56 | 97.49 | |
| ex-coal.. i.e. oil shales | 8.05 | 91.69 |
ex-oil | 0.03 | 0.34 | |
ex-gas | 0.44 | 5.01 | |
ex-biomass | 0.04 | 0.46 | |
NET PORODUCTION | 7.88 | 89.75 | |
Imports | 3.03 | 34.51 | |
Exports | -2.94 | -33.49 | |
Transport, distribution losses | -0.89 | -10.14 | |
TOTAL CONSUMPTION | 7.08 | 80.64 | |
Energy Sector Consumption | 0.40 | 4.56 | |
FINAL CONSUMPTION | 6.68 | 76.08 | |
| industry | 2.06 | 23.46 |
transport | 0.06 | 0.68 | |
households, services | 4.55 | 51,82 | |
Electricity production in Estonia according to energy sources, 2009
Electricity
In 2010, Estonia has a net electricity capacity of 2,258 MW, essentially based on oil shale.
The Estonian electricity production market is set to be transformed over the next couple of years. The production of electricity by burning oil shale, at present the dominant source of electricity, must be modernised by 2016. By now Estonia has modernised about 400 MW of its oil shale power plants. Because of energy security considerations, Estonia will continue using oil shale for producing electricity, but it is also clear that the current capacity of oil shale electricity of about 2,500 MW is excessive. Especially considering that the price of oil shale electricity is going to increase signifi cantly due to the price of the CO2 quota. Estonia must gradually diversify its electricity production by building more co-generation plants that use different fuels, wind power farms, balancing stations and, in the long run, there are plans in regard to a small nuclear power plant.
The electrical power network of Elering, a former subsidiary of Eesti Energia (see: Structure of power sector) comprises of 131 substations and 5,078km of transmission lines at voltages of 110 kilovolts (kV), 220 kV, and 330 kV. The electrical power network of Distribution Network comprises of 17000 substations and 59,100km of lines (of up to 35 kV), (more than 52,000 kilometers of overhead lines and about 6,200 kilometers of buried cables).
Estonia has interconnection capacities with three countries: Russia, Latvia and since 2006, Finland (submarine connection). The Baltic States have an interconnected transmission network that operates as a single system, but they are not well integrated with neighbouring countries. In the framework of the Baltic Energy Market Interconnection Plan (BEMIP), a new Estonia-Latvia interconnection line is under consideration.
Furthermore, Estlink is a set of HVDC submarine cables between Estonia and Finland. Estlink 1 is the first interconnection between the Baltic and Nordic electricity markets following by Estlink 2 in 2014. The main purpose of the Estlink connection is to secure power supply in both regions to integrate Baltic and Nordic energy markets.
Estonia is a net exporter of electricity.
Oil and Natural Gas
Oil Shales
Oil shales is Estonia’s primary mineral resource and has been a major source of energy for many decades. The reserves amount to 4 Gt. With an annual production of around 2,500 MW, Estonia accounts for 70% of the world's oil shale production. The fields are located in the North-East of the country and cover 1,830 sq km. The extraction takes place in 6 underground mines. The two largest oil shale fired power plants produce the major part of electricity.
The oil-shale sector, which employs a large number of workers, poses serious environmental concerns, and efforts to achieve increased efficiency of production and reduced environmental damage, and to minimise the social impact of reforms in this sector are ongoing.
Oil
All of the country's oil products are imported, Estonia does not hold any domestic reserves in crude oil. Furthermore the country has no refineries. Oil products are mainly imported from Lithuania (31%) and, to a lesser extent, from Russia (28%), Belarus (16%) and Latvia (10%). They are remaining stable since 1992 ( 1 Mtoe in 2008).
The consumption of oil products have been increasing significantly since 2000 (+3%/year). Transport absorbs almost three-fourths of the consumption.
[Enerdatahttp://www.enerdata.fr/enerdatauk/]
Gas
Eesti Gaas is the only importer and purchases gas from two of its shareholders (Gazprom and Itera Latvija). The contract with Gazprom lasts until 2015. The dependence on Gazprom let to supply problems in the past, since Estonia was not always able to pay the bill.
Natural gas imports are currently around 961 Mm3 (2008 figures).
[Enerdata]
Coal and lignite
Coal had been used for district heating in many towns in former days, but it has been largely supplanted by natural gas imported from Russia.
Renewable energy
The share of renewable energy sources in primary energy demands amounts to approximately 12 %. According to the targets set by the newly proposed RES Framework Directive from 2008 the share of renewables has to be increased to 25 % in 2020. Furthermore the indicative target set by the RES-electricity European Directive from 2001 requires a 5.1 % share of RES in gross electricity consumption by 2010. Unfortunately as consumption is still increasing, efforts to increase the share do not suffice to reach the targets.
According to estimations from 2010, between 2010 and 2020, Estonia will exceed its 25% target for 2020 by 0.1%. The peak of excess production is expected to be the highest between 2013 and 2016 with an average of 85 ktoe and the decrease to about 3 ktoe by 2020.
Estonia's largest RES potential is to be found in the biomass sector, but possibilities also exist in the areas of wind power, biogas electricity and small hydropower.
[EREC]
Hydropower
Current Status
Although Estonia has numerous rivers, it is a relatively flat country and does not have significant hydroelectric potential. The three longest rivers in the country are the Vohandu which flows eastward through southeastern Estonia, the Parnu, which flows southwest through western Estonia, and the Poltsamaa, which flows southward through central Estonia. The Narva River, which forms part of Estonia's eastern border with Russia, has the greatest discharge rate, more than all the other river systems in the country combined.
There are two big hydro power plants in Estonia at the moment (Linnamäe HPP 1.1 MW and Keila-Joa HPP 0.365 MW).
Hydro Energy Resource Potential
Studies have shown that Estonia’s modest hydroelectric potential is only exploited to a small extent; even though larger hydroelectric projects are not possible, there are many places throughout the country where smaller environmentally-friendly projects might be feasible.
Bioenergy
Current Status of Biomass Energy
As more than half of the Estonia’s territory is covered with forests, biomass is an important primary energy source. The use of wood fuels increased relatively rapidly in the first half of the 1990’s, and it continues to grow. Firewood comprises the major share of wood fuels consumption. The share of refined wood fuels, such as briquettes and pellets, is still marginal, in spite of a quite large production capacity.
The role of biomass is most dominant in the heating sector. Of the approximately 4000 boilers that are used for heat production in Estonia, about one fifth are suitable for biomass combustion.The main source of biomass in Estonia is forestry and forestry industry. There has been a rapid increase in forest area and growing stock of stands during the last 60 years – the area has increased 2.5 times and the growing stock 4.2 times. Forest area has increased as a result of the afforestation of unused agricultural lands, but also due to the drainage of bogs between 1960–1980s. During the last decades the forest area has increased through natural regeneration of former agricultural lands. It is estimated that this process will continue in the near future, as the agricultural market is shrinking and Estonia needs less area for traditional farming.
The solid industrial residues include waste from sawmills, but also from wood processing industry. Black liquor is an industrial by-product that is available and utilized in one pulp plant only.
90% of the production of firewood is used in households. Woodchips are also widely used in households.
[Bioenergy in MotionReferences]
Biomass Energy Resource Potential
The greatest potential is related to forestry: firewood together with harvesting residues. The solid industrial residues include waste from sawmills, but also from wood processing industry. Black liquor is an industrial by-product that is available and utilized in one pulp plant only.
The theoretical potential of primary energy content of non-conventional biomass (i.e. excluding wood fuels) has been assessed by several authors. According to these expert opinions the very approximate annual volume of this resource could be 45-50 PJ. It has to be noted that this is a theoretical potential, the utilisation of which has not yet started. The deployment of these resources depends mainly on economic feasibility.
Wind energy
Current Status of Wind Energy
Total capacity (2010): ~149MW wind energy.
Wind energy production (2010): 276 GWh.
According to the Estonian renewable energy action plan until 2020 from the end of 2010, wind electricity capacity should grow from the current 149MW to around 600MW by 2020.
[Estonian Wind Power Association]
Wind Energy Resource Potential
Wind is a renewable source for electricity with a very high potential in Estonia.
A wind atlas is available. It can be viewed on the website of the Estonian Wind Power Association. The atlas identifies several areas with an average wind speed of 7-8 m/s at 10m height, which corresponds to a wind speed of over 10m/s at 50m height. The country plans to reach a wind capacity of approximately 600 MW by 2020.
Solar energy
Current Status of Solar Energy
Use of solar energy is currently not noticeably spread, neither for heat nor for electricity production.
Solar Energy Resource Potential
Due to the climatic conditions and the northern latitudinal placement, the solar energy potential is small in Estonia. The solar insolation ranges from 0.5 (worst month)– 2.7 kWh/m2 (year average) per day. The seasonal use of solar water-heating plants and photovoltaic plants is possible.References
Geothermal Energy
Current Status of Geothermal Energy
The geothermal conditions in Estonia are unfavorable. There are no thermal waters.
Support Mechanisms and feed-in conditions for electricity from renewable energy sources
The Feed-In Tariffs are regulated by the Electricity Market Act which entered into force on July 1st, 2003, amended in 2007.
To promote the utilization and development of RES, some tax relieves from the usual 18% VAT have been stated. There is a lower VAT rate of 5% on wood fuel and peat sold to individuals for heating. Unfortunately the tax relief of 0% VAT on energy produced by wind and hydropower had to be abolished due to accession conditions. Further, no CO2 pollution charge is imposed on enterprises utilizing biofuel, peat or waste for energy production.
Resource | Support level (€cents/kWh) | Start year | Duration (years that an investor is entitled to support) | End year (of the scheme) | Comments |
|---|---|---|---|---|---|
Wind | 74.2 €/MWh | 2007 |
| up to the annual total production of all wind farms 200 GWh |
|
other Renewables | 74.2 €/MWh | 2007 | 12 years |
| From beginning of operation |
Wind | 54.2 €/MWh | 2010 | up to the | up to the annual total production of all wind farms 400 GWh |
|
other Renewables | 54.2 €MWh | 2010 | 12 years |
| From beginning of operation |
All RES | 5.2 - 7.34 |
| 12 years | 2015 | Purchase obligation of wind energy from 2009 - up to 200 GWh; from 2013 - up to 400 GWh. From 2009 balance Responsability for wind energy producers |
1 Euro: 15.64 EEK | |||||
Support for RES-Heat
Source: EREC | |||||
Resource | Technology | Support level (feed-in tariff) | Start year | Duration | Comments |
|---|---|---|---|---|---|
Wood | CHP | feed-in 54.0 €/MWH | 2007 | 12 years | from the beginning of operation |
any other | CHP | feed-in 54.0 €/MWH | 2007 | 12 years | if replacing a boiler-house |
Wood | CHP | support 33.3 €/MWh | 2010 | 12 years | from the beginning of operation |
any other | CHP | support 33.3 €/MWh | 2010 | 12 years | if replacing a boiler-house |
1 Euro: 15.64 EEK | |||||
Support for Biofuels
Biofuel is exempt from excise duty since July 2005. A biofuel permit granted for six years by the Tax and Customs Board gives the right to produce biofuel, import it into Estonia and release it for consumption free of excise duty. However it obliges the beneficiary together with the application to present specifications and a yearly report.
