Wind
Energy in Estonia
General
The Estonian energy
supply is mainly from the indigenous fossil fuel oil shale, a
situation that only occurs in a few countries worldwide. Regarding
renewables, the additional potential is mainly in biomass, biogas,
wind power and small hydropower. The Estonian energy policy is
described in the Estonian Longterm Public Fuel and Energy Sector
Development Plan and the Development Plan for Electricity
Sector until 2015. According to these documents, the overall
share of renewable electricity aimed at is 8% in 2015 and 10% in
2020. The following technology-specific targets are mentioned:
2010 |
2015 |
|
Wind power |
2.2% |
5.4% |
Biomass |
2.5% |
3.0% |
Other renewables (landfill gas and hydropower) |
0.4% |
0.5% |
According to the Directive 2009/28/EC of the European
Parliament and of the Council on the promotion of the use of energy
from renewable sources the target for the share of energy from
renewable sources in gross final consumption of energy in the year
2020 for Estonia is 25% (in the year 2005 the share was 18.0%). The
Directive has a mandatory 10 % target for transport to be achieved by
all Member States, which refers to renewable sources as a whole, not
biofuels alone.
Renewable
energy projections according to the National Renewable Energy Action
Plan for Estonia
The National Renewable Energy Action Plan
(NREAP) for Estonia was submitted in December 2010. The target
according to Annex I of Directive 2009/28/EC is 25% for the year 2020
and the projected NREAP share in that year exactly matches the
target. According to the projection, the most important
contribution in the year 2020 is expected from biomass (renewable
heating and cooling) (607 ktoe, 70% of all renewable energy). Second
important contribution is expected from wind power (1.5 TWh or 132
ktoe, 15% of all renewable energy). The third largest contribution is
from biodiesel (renewable transport) (51 ktoe, 6% of all renewable
energy). Wind power contributes with 0.7 GW (1.5 TWh) in the year
2020 (onshore wind 0.4 GW and 1.0 TWh, offshore wind 0.3 GW and 0.6
TWh). No solar PV nor solar thermal is projected for 2020. The two
most important biofuels are projected to contribute 51 ktoe
(biodiesel) and 38 ktoe (bioethanol / bio-ETBE) by 2020. For solid
biomass and biogas no projections have been made in the Estonian
Action Plan.
Renewable electricity: wind
power
In Estonia a system is in place where the grid operator
is obliged to buy the renewable power, and is also responsible for
paying the fee (feed-in tariff or subsidy) to the RES-operator. The
system was revised thoroughly in 2007. In February 2007, the
Estonian Parliament adopted several amendments to the Electricity
Market Act, among which the changes in feed-in tariff and market cap
are the most profound. Starting from the 1st of May 2007, the
wind energy tariff is 115 Estonian cents per kWh (7.35 €cents
per kWh). However, the new act introduces the volume cap for a
predefined fixed feed-in tariff: the tariff of 115 Estonian cents is
valid until a market cap of 200 GWh annually (approximately 75 MW of
installed capacity). After the named boundary the 2 tiersystem will
be applied: market price of 35-45 Estonian cents per kWh (2.2-2.9
€cents) plus subsidy of 84 Estonian cents per kWh (5.37 €cents
per kWh). The second scheme system will be terminated when 400 GWh of
wind electricity is annually produced (approximately 150 MW of
installed capacity) and then only market price will be valid (the
subsidy is phased out). First and second scheme systems start again
at the beginning of each year until caps are met. Named reference to
has been enforced as of the 1st of January 2009. The new amendment to
the Electricity Market Act gives an opportunity for trading with
Green Certificates, but on the expense of subsidy traders must give
up subsidies in return for the GC. Currently, the market price plus
subsidy gives a larger sum than the market price plus GC. Therefore
the system is not operational in practice (GC system is not solidly
in place). Besides, the operators of wind parks have to provide
forcasts for their production. The balancing requirements for wind
parks that were established before the 31st of December 2007, are
applied after the 1st of January 2009. For the wind parks that were
installed after 31st of December 2007, the balancing requirements
became instantly applicable.
A system of guarantees of origin
is in place but no guarantees have been issued yet.
Furthermore,
Estonia receives financial means from the EU budget for Structural
Funds, implemented through the Estonian National Development Plan
(NDP). Reducing environmental impact of the energy sector, improving
efficiency and increasing the share of renewable energy are goals.
During the period of 2004 to 2006, the Centre approved 14 renewable
energy projects and paid out grants totalling approximately EUR 2.7
million. For the period 2007 to 2013, the National Strategic
Reference Framework (NSRF) has been announced, which has a focus on
investments for flexible (RES) cogeneration plants and grid
connection infrastructure. Other investment subsidy schemes available
to RES-E come from funds originating from other Western European
countries: Norway, Iceland and Liechtenstein.
No tax
incentives apply to RES-E. A system of green certificates is in
operation on a voluntary basis as of 2001, introduced by Estonian
Energy AS and the Estonian Fund for Nature. Also, environmental
charges are collected, regulated by the Environmental Charges Act
(ECA). This charge is applicable to production of electricity.
Electricity from hydropower, wind, biomass and the use of waste are
exempted from this tax. Furthermore, excise taxes exist on
fuel.
Future programme changes expected
An
ecological tax reform was initiated in Estonia in 2005, and is to be
carried out by 2013. In the energy sector, one of the priorities of
ecological tax reform is to promote renewable energy and the
production of RES-E in particular. Furthermore, no new information is
available for the coming years.
Sources
Imbi
Jürgen, Tark & Co, Estonia, I.E.L.T.R. ISSUE 10,
2007
Estonian Ministry of Economic Affairs and Communications,
http://www.mkm.ee (sourced September
2008)
Viive Šavel, Support scheme for electricity from RES and CHP in Estonia - Electricity Market Act, Sixth Workshop of the International Feed-in Cooperation (IFIC), Brussels, November 2008, http://www.feed-in-cooperation.org/content/view/58/72 (sourced January 2009)
Long-term Public Fuel and Energy Sector Development Plan until 2015, Andrus Ansip, Minister of Economic Affairs and Communications, Tallinn 2004, http://www.mkm.ee/index.php?id=11407 (sourced January 2009)
Electricity Market Act and the Grid Code, http://www.mkm.ee/index.php?id=11407 (sourced January 2009)
Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources, http://ec.europa.eu/energy/renewables/transparency_platform_en.htm
World Wind Energy Association (WWEA): World
wind energy international 2009/2010, ISBN: 978-3-940683-01-4
The
National Renewable Energy Action Plans (NREAPs) are all published on
the Transparency Platform on Renewable Energy:
http://ec.europa.eu/energy/renewables/transparency_platform/action_plan_en.htm
(sourced July - December 2010)
Renewable Energy Projections as
Published in the National Renewable Energy Action Plans of the
European Member States, http://www.ecn.nl/nreap
(sourced December 2010)
Interactive EurObserv’ER
Database
http://www.eurobserv-er.org
Last update: January 2011
This information can be referenced without permission provided
that the source is mentioned completely and correctly: 'Interactive
EurObserv'ER Database, http://www.eurobserv-er.org (date of last
update)'
Suggestions for improvements to the policy
description can be sent to EurObserv'ER by e-mail:
project@eurobserv-er.org
The EurObserv'ER barometer is a project supported by the
European Commission within the DG ENER 'Intelligent Energy Europe'
programme and by Ademe, the French Environment and Energy management
Agency. The EurObserv'ER Barometer is the result of the investigation
and research work of its authors. The European Commission is not
responsible for any use that may be made of the information contained
therein.