Government action plays a pivotal role in ensuring secure and sustainable energy transitions and combatting the climate crisis. Energy policy is critical not just for the energy sector but also for meeting environmental, economic and social goals. Governments need to respond to their country's speci Contact online >>
Government action plays a pivotal role in ensuring secure and sustainable energy transitions and combatting the climate crisis. Energy policy is critical not just for the energy sector but also for meeting environmental, economic and social goals. Governments need to respond to their country''s specific needs, adapt to regional contexts and help address global challenges. In this context, the International Energy Agency (IEA) conducts Energy Policy Reviews to support governments in developing more impactful energy and climate policies.
NECP 2030 brings together the targets of Estonia''s energy and climate policy and 71 measures developed to fulfil them. It has been prepared as a joint effort of various ministries (Ministry of Economy and Communications, Ministry of the Environment, and Ministry of Rural Affairs) based on the current development documents:
The requirement for the National Energy and Climate Plan is provided for by Article 3 (1) of Regulation (EU) 2018/1999 on the management on the Governance of the Energy Union and Climate Action. The member states of the European Union must submit their national energy and climate plan to the European Commission every 10 years. Updated versions or justifications for not requiring an update must be submitted by 30 June 2023 and 2024. The energy and climate plans of all European Union member states can be found on the website of the European Commission.
Energy in Estonia has heavily depended on fossil fuels.[1] Finland and Estonia are two of the last countries in the world still burning peat.[2][3]
Estonia has set a target of 100% of electricity production from renewable sources by 2030[4] and climate neutrality by 2050.[5]
In response to geopolitical tensions, Estonia reduced its reliance on Russian energy sources by halting imports of Russian pipeline gas in April 2022 and banning all Russian natural gas and oil product imports, including LNG, by September 2022. In December 2022, Estonia reinforced its stance by prohibiting the purchase and transfer of crude oil and oil products from Russia.[6]
The National Energy and Climate Plan published in 2019 aims to reduce greenhouse gas emissions by 70% by 2030 and by 80% by 2050. Renewable energy must be at least 42%, with a target of 16 TWh in 2030.[8]
The plan was changed in October 2022, when Estonia set a target date of 2030 to generate 100% electricity from renewables.[9]
According to the International Renewable Energy Agency (IRENA), in 2020, renewable energy accounted for 32% of Estonia''s Total Energy Supply (TES). The composition of this renewable energy mix was heavily dominated by bioenergy, which represented 93% of renewables. Wind energy made a 5% contribution, and hydro and marine sources combined for 2%, with solar energy having a minimal impact.[1]
In 2020, biomass constituted 29.8% of Estonia''s Total Energy Supply (TES). This figure was derived from the renewable energy sector''s 32% contribution to the TES, with biomass making up 93% of the renewable energy mix.[1]
Wind power had a capacity of 320MW in 2020 however investment continues with a €200m 255MW Sopi-Tootsi wind project planned to be operational by 2024.[10]
Solar power has received investment since 2014. In 2022, Estonian solar power plants produced 2,569 gigawatt-hours (GWh) of renewable energy. 26 million euros were paid in subsidies for electricity produced via solar power in 2022.[11]
The original target to reduce production from oil-shale was 2035 with production ceasing by 2040, has been changed to ceasing oil-shale production by 2030.[14]
The country''s reliance on oil shale has decreased but remains its primary energy source. Between 2011 and 2021, the share of oil shale dropped from 71% to 60% in total energy supply and from 85% to 48% in electricity generation, rebounding to 57% in 2022. This reduction improved Estonia''s carbon intensity, dropping it from the 3rd highest in the IEA in 2017 to the 18th highest in 2022.[6]
In April 2022 Estonia reduced gas imports from Russia and on 29 September 2022 Estonia banned buying natural gas from Russia. Work began on LNG facilities at Paldiski which was completed in October 2022 and increased transmission capacities in existing interconnection points.[16][17]
Electricity production in Estonia is largely dependent on fossil fuels 2007, more than 90% of power was generated from oil shale.[19]The Estonian energy company Eesti Energia owns the largest oil shale-fuelled power plants in the world, Narva Power Plants.[20]
It was agreed in 2018 that Estonia, Latvia and Lithuania will connect to the European Union''s electricity system and desynchronize from the Russian BRELL power system, this is expected to be completed by February 2025.[22] An interconnector linking the Lithuania with Poland is to be built, called the Harmony Link Interconnector which will be instrumental in stabilising the new system.[23]
A back up plan, should Russia disconnect the Baltic states before 2025, would enable a connection to the European grid to be completed within 24 hours.[24]
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