Estonia 2013: Energy Policies Beyond IEA Countries
Overview
Estonia, one of the fastest-growing economies in the OECD, is actively working to reduce the energy intensity of its economy. The country relies heavily on oil shale, which accounts for about 70% of its energy demand. Despite providing significant energy security, oil shale is highly carbon-intensive and thus poses environmental challenges. The Estonian government is addressing these issues by phasing out old power plants and developing new technologies to reduce CO2 emissions.
Modernization of Energy System
Since regaining independence in 1991, Estonia has made substantial progress in modernizing its energy system. The country has fully liberalized its electricity and gas markets and achieved most of its national energy policy targets and commitments for 2020. Estonia is also preparing an energy strategy for 2030, with an outlook to 2050. Additionally, the country is promoting energy market integration with neighboring EU member states, focusing on strengthening the Baltic electricity market and integrating it with the Nordic market, as well as establishing a regional gas market.
Energy Policies and Challenges
The review of Estonia's energy policies is part of its application for IEA membership. The report analyzes the energy policy challenges and opportunities facing Estonia and provides critiques and recommendations for future policy improvements. The main objectives are to ensure a more secure and sustainable energy future.
Sector Analysis
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Energy and Climate Change: Estonia faces significant energy-related CO2 emissions, with policies and measures aimed at reducing them. The assessment highlights areas for improvement.
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Energy Efficiency and District Heating: Final energy use and district heating policies are analyzed, with a focus on legal and regulatory frameworks. Recommendations are provided to enhance efficiency and reduce emissions.
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Natural Gas: The policy overview, supply and demand, imports and exports, and industry structure are discussed. The report assesses natural gas supply security and provides recommendations for improving the market.
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Oil Shale and Oil: The report focuses on oil shale, with recommendations to address environmental concerns while continuing to utilize this resource.
Overall, Estonia is making strides in modernizing its energy sector to ensure energy security, sustainability, and reduced environmental impact.
