Energy policy and its implementation in Estonia

Renewable energy

4.05.2012

Madis Laaniste, Energy Department

National energy policy

• Adopted in Parliament June 2009• Key issues for Estonia

– Security of electricity supply, reduction of carbon intensity on power generation mix

– Future of domestic oil shale power generation– Oil shale mining and shale oil production– Diversification of natural gas supply sources– Opening of electricity market– More efficient energy consumption– Higher share of renewable energy– Becoming a member of IEA

Targets of RES policy

• national long-term energy strategy (Parliament 2009)– target for renewables – 25% from gross final

energy consumption in 2020– target for transport – 10% from renewables

in 2020

Estimates of final consumption and targets of energy efficiency policy

Primary energy supply

Total Primary Energy Supply: in 2010 – 233 PJ (5.56 Mtoe) [in 2009 – 200 PJ]

Coal&coke0%

Oil shale66%

Peat1%

Wood14%

Natural gas10%

Oil and gasoline

9%

Final Energy Consumption

Total Final Energy Consumption: in 2010 – 119 PJ (2.84 Mtoe)

Industry18%

Agriculture3%

Transport19%

Services15%

Households45%

Final Energy Consumption

Total Final Energy Consumption: in 2010 – 119 PJ (2.84 Mtoe)

Solid fuels17%

Liquid fuels32%

Gaseous fuels5%

Electricity21%

Heat25%

Total share of RES

Achieving national target

Measures to promote RES-E generation• Premium tariff support scheme (premium tariff

53.7 €/MWh + market price ~50 €/MWh), available for 12 years– for RES-E generation in CHPs unlimited support– for wind, support is available until 600 GWh is

generated during the calendar year

• Investment support schemes– for installation of wind energy capacities, first call of

proposals ~30 MW;– for small CHPs (biogas, biomass) less than 2 MWel

• Wind energy support scheme extensions probably needed for additional 300 MW, in total up to 650 MW needed

Measures to promote RES-E generation• Investment support scheme for offshore wind

farms– the use of use of flexibility mechanisms is

envisaged

• Development of the grids• Measures to streamline planning of offshore

wind farms – basic legislation is in place

Measures to promote RES-H generation• Fuel excises discourage the use of fossil

fuels and promote conversion to RES in boilerhouses

• Investment support schemes for boilerhouses

• Long-term contracts for heat suppliers using domestic fuels (principle adopted recently in the District Heating Act)

Measures to promote RES-H generation• Support to renovation of buildings

– Support programmes for apartment buildings started in 2003

– Support programmes for small residential buildings launched in April 2012

– Reconstruction of public buildings

• Energy performance requirements for buildings promote use of RES in buildings (easier to fulfil the requirements when using heat pumps)

Contribution of heat pumps

• NREAP implementation progress report 2011:– in total, the amount of RES-H was 7931

GWh– in addition to that, estimated share of RES-

H from heat pumps was 430 GWh– no information, how this is split between

aero-, hydro- or ground source heat pumps

Thank you!