Energy Today in Estonia

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    Bio-mass energy and production Estonia 2005-2013

    Section I

    Purposes and the current situation of renewable energy in Estonia

    By Rene Tammist, Manager of Estonian Renewable Energy Association

    Structure

    Introduction of Estonian Renewable Energy Association Renewable energy in Estonia today Perspective up to 2020 The main activities in 2011

    Renewable energy in Estonia today

    Renewable sources are water, wind, sun, waves, tides, earth temperature, dumping groundwastegas, gas emission/segregation from sewage, biogas and biomass

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    282,4 MW power to the end of 2011 Up to 2007 minimum investments Soaring in 2009: 107,5 MW Towards the end of 2011 there is produced 767 GWh power from renewable sources, 412

    GWh from biomass and 343 GWh from wind power

    Prospective of renewable enery in Estonia up to 2020

    Purpose according to the renewable energy directive: 25% renewable powers from total finalconsumption, 7% higher from consumption level in 2005 (18%)

    Up to the Member State whether it will be achieved in heating and cooling, electricity ortransporting fuel consumption (min 10% renewable fuels in the field of

    According to the National Renewable Energy Action Plans (NREAP) the renewable sourcesmust come from heating and cooling (from 31,3% in 2005 to 38,1% in 2020), from electricity

    (from 0,1% to 17,6%), from transport (from 0% to 9,9%)

    727 MWel powers to the end of 2020 according to the National Renewable Energy ActionPlans up to year 2020

    1919 GWh electricity produced of renewable sources

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    Basically all the growth in the country is planned through the wind power; biogas and solarpower are not included to the plans

    Electricity Economics Action Plans accepted in 2009 (up to 2018) budgets for 1160 MWrenewable powers (incl. wind 900 MW). Today the existing powers are acceptable

    Subsidization of Energies

    It is important to move towards to the development of market- based prices for electricity. Therefore it is expected an end of subsidization in fossile power sources and calculating the

    environmental contamination caused by fossile sources and nuclear power in energy prices.

    Allikas: OECD ja Rahvusvaheline Energiaagentuur (2011)

    http://www.oecd.org/document/57/0,3746,en_2649_37465_45233017_1_1_1_37465,00.html

    Subsidization of Energies Estonia

    Subsidium of renewable sourcescontains on the base of EITS ?? The

    grant for sustainable sources

    120 Mlj eur from fossile subsides is

    made up by a CO2 quota, 150 Mlj

    eur oil shale opportunity costs, in

    addition financial support for

    biomass burning in Narva kettles

    and grant for efficient cogeneration

    http://www.oecd.org/document/57/0,3746,en_2649_37465_45233017_1_1_1_37465,00.htmlhttp://www.oecd.org/document/57/0,3746,en_2649_37465_45233017_1_1_1_37465,00.htmlhttp://www.oecd.org/document/57/0,3746,en_2649_37465_45233017_1_1_1_37465,00.htmlhttp://www.oecd.org/document/57/0,3746,en_2649_37465_45233017_1_1_1_37465,00.html
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    Allikas: Eleringhttp://elering.ee/taastuvenergia-toetus-2/, Eleringi juhi Taavi Veskimgi hinnang

    http://www.taaviveskimagi.ee/

    Grants for renewable energy

    Investment grant, which helps to brng the new sustainable technologies to the market, causethe lower costs for technology through the increased extension, reduce the impact of

    energetics to the environment, increase the confidence in supply

    Grant for renewable energy (Feed-in Tariff) guarantees to the producer the prices forelectricity or fixed grants during 10-20 years in addition to electricity price applied on the

    market. (EE-s both up to 2010). In 23 Member States in service.

    In the neighbouring countries the obligation to purchase is used. Is in use in Latvia, Lithuaniaand Finland. Fixed grant is used in Estonia and the obligation to buy green certificates in

    Sweden.

    There are differentiated refunds which vary in payments duration and there are differencesin reference system. i. e. Additional investment aids, available payment facilities,

    compensation of power network costs, taxation of fossile sources etc.

    0

    0.1

    0.2

    0.3

    0.4

    0.5

    0.6

    Bulgaria

    Cyprus

    CzechRepublic

    D

    enmark

    Estonia

    Finland

    France

    G

    ermany

    Greece

    Hungary

    Ireland

    Italy

    Latvia

    L

    ithuania

    Luxe

    mbourg

    Malta

    Netherlands

    Poland

    Portugal

    Romania

    Slovakia

    Slovenia

    Spain

    Sweden

    UnitedK

    ingdom

    Taastuvenergia toetuste min mr 04/2010, EUR/kWh

    Windpower 'On-shore'

    Wind power 'Off-shore'

    Solar PV

    Biomass

    Hydro

    http://elering.ee/taastuvenergia-toetus-2/http://elering.ee/taastuvenergia-toetus-2/http://elering.ee/taastuvenergia-toetus-2/http://www.taaviveskimagi.ee/http://www.taaviveskimagi.ee/http://www.taaviveskimagi.ee/http://elering.ee/taastuvenergia-toetus-2/
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    Grant for renewable energy fixed by law for electricity market 59 prescribes the right for therenewable energy producer to get support from main power network supplier:

    For electricity produced from renewable sources 0,0537 EUR per kWh For electricity produced from biomass in cogeneration regime 0,0537 EUR per kWh

    On an efficient cogeneration regime from fossil sources i.e. waste, peat or oil shalegas (heating gas) 0,032 EUR per kWh

    Over 20% of total grants are paid for burning oil shale and biomass together in EestiEnergia Balti EJ (Power Station) 11 cogeneration blocks. The efficiency of

    cogeneration a block in the Baltic Electric Power Station is ca 40%, which is

    approximately two times less compared to new CHP stations. From the same wood

    amount could be produced twice as much and even more energy or to produce the

    same amount of energy with twice as less wood.

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    By the end of 2020 according to the National Renewable Energy Action Plans Estoniawill need 727 Mwel renewable powers.

    According to the law for electricity market in 59 the support for wind energy isreduced to 600 GWh (ca 250 MW). This limit will be reached by 2012.

    With grants for sea wind parks, biogas and solar power have not accompanyinginvestments. There are also problems in the case of small biomass CHP-s.

    Discussion about reorientation of the grant system in order to accompany alternativemonetary resources for new required powers by 2020 for obligatory renewable

    energy purposes. By existing powers forms EREA an opinion, that the grants cannot

    be changed for the legal certainty. Also there must be found some other sources for

    refunding besides the bills of electricity comsumers, e.g. The EU CO2 waste trade

    (ETS) auction incomes, the EU structural funds or the flexible trade regulations of

    renewable energy directive.1

    Section II

    Bioenergy Production and UseIssued by the Estonian Ministry of Agriculture 2005

    1. Resources used for electricity production in 2005 Oil shale - 91%

    Natural gas - 5% Oil shale gas - 2% Wind and water - 0,8% Peat - 0,1% Biomass - 0,2%

    Growing of energy crops 2007

    Wood waste - 20% Oil shale - 14% Oil shale oil - 8% Other fuels - 8%

    1Original PowerPoint written by: Estonian Renewable Energy Association Rene Tammist

    www.taastuvenergeetika.ee, 10.11.2011

    http://www.taastuvenergeetika.ee/http://www.taastuvenergeetika.ee/http://www.taastuvenergeetika.ee/
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    Peat - 3% Fuel oil and diesel fuel - 4%

    Bricks and Pellets

    Fuel briquette, pellets, quarter wood - 1% Natural gas - 42% Osier/willow - 1 ha Rape - 11 400 ha Oat - 75 ha

    Reed - 110 ha

    Territorial scale according to land type

    Swamps and wetlands - 5% Grassland - 7% Arable land - 23% Forest - 50% Scrubland - 2% Internal water bodies - 2% Built-up area - 4% Other - 4%

    Estimated 2,27 Mlj Ha are covered with forest, partially with wooded arable land. At present area-

    related aids are paid for ca 850 000 Ha arable land. In 2004 were declared 1,2 Mlj Ha arable lands intotal.

    Main arable crops production in 2005

    Arable crop - area - harvest productivity

    Rye (Winter) wheat Oat

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    Barley Legume vegetables Rape

    2. Developing of biomass and bio energy

    Implementation of 2007-2013 development plan for promotion the usage of biomass and bioenergy

    Grants for energy materials Buying-up renewable energy Bioenergy investment grants in both rural development plan and in operational program in

    physical and social environment development.

    Exemption from excise duty for transport bio fuel

    Bio-energy in current and its future goals, 2005-2013 Combined heat and power - 0,2% / 3% Heat produced from renewable resources for district heating - 21% / 33% Proportion of bio fuels in production of transport fuels - 0% / 6%

    Over 10 000 TJ heat per year is produced in wood boiler plants

    Big pellet manufacturers

    Production of bio ethanol, bio diesel and bio gas in current and in future

    Existing bio diesel production Planned bio diesel production Existing bio gas production Planned bio ethanol production Planned bio gas production

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    Primary energy supply in 2005

    Oil shale - 59% Gas - 15%

    Wood and peat - 12%

    Liquid fuel - 14%

    Final consumption of energy resources in 2005 114 PJ in total

    Wood and peat - 14,9% Liquid fuel - 37,2%

    Gas - 4,5%

    Electricity 21,7% Heat - 32,2% Coal - 1,1% Oil shale - 2,3%

    Energy final consumption in 2005 in total 114 PJ

    Industry - 25,9% Agriculture - 4,2% Transport - 22,4% Institutions - 14,8% Residential consumption - 46,7% 2

    2http://www.bioenergybaltic.ee/bw_client_files/bioenergybaltic/public/img/File/Bioenergy_voldik_EST.pdf