Tiiu Müürsepp

Director of Tartu Consumer Advice and Information Centre,

Riga, 20.08.2010

Environmental influence of energy industry is biggest in the industry sector

Europe Union climate policy: Emitted greenhouse gases diminish competitivity

Europe Union energy police: focus on liberalisation of energy markets and use of energy sources with slender environmental impact

94% of electricity is produced from oil-shale

Eesti Energia have to purchace quota ca 1 mln ton for 2010, price of quota ca 15 €/t

In the situation when emitted CO2 amounts are not covered with corresponding number of quota have the company pay forfeit 100 €/t in years 2008-2012

Electricity and heat for our homes 2009/2010

Source: www.energia.ee

Eesti Energia overview

So is our electricity system mainly “0ne direction”, for transportation of electricity from North-East Estonia to the other parts of Estonia

This eliminates electricity production working in principles of distributed generation, less till 2020

Estonian Electricity Market Act defines renowable energy sources as

◦ water,

◦ wind,

◦ sun,

◦ waves,

◦ tides

◦ geothermal energy,

◦ gas from landfils,

◦ gas from waste water treatment,

◦ biogas and biomass

Source: www.energia.ee /en /power/renewable

Eesti Energia produces currently electricity from wind, water and biomass

Source: www.energia.ee/en/power/renewable

Eesti Energia plans to produce electricity from multiple energy

sources in oder to reduce the emission on greenhouse gases

In the production of wind energy the remarkable sprung was in 2005, afterwards is the production grown but slowlier

The production of hydro plants was stabiler and slowlier

Although the importance of renewable electricity is relative small, it is grown from year to year and constituted 1,5% in 2008, 5,1% in 2010

In 2009, an application round of the measure "Extended use of renewable energy sources for the generation of energy" financed from the Europe Regional Development Fund ERDF was held.

In the framework of that round, 150 million kroons worth of grants were awarded for the reconstruction of boiler houses and district heating networks and the construction of combined generation plants

The application round was open to local governments, non-profit associations, businesses and foundations.

Applications accepts Environmental Investment Centre

Directive 2001/77/EC on the promotion of electricity

produced from renewable energy source in the internal

electricity market ---goal for Estonia 5,1% in 2010

Directive 2003/30/EC on the promotion of the use of

biofuels or other renewable fuels for transport

Goals for member states, biofuel 5,75% from sold transport fuels

Directive 2009/28/EC 23.04.2009 on the promotion

of the use of energy from renewable sources

Goal for Estonia 25% renewable energy in 2020

International research company GfK has provided in last two years research about environmental issues

67% Estonians in 2009 and 71% in 2010 aren’t ready to pay more for renewable energy, said PRB

Youth and especially students are the most agreed group to pay more for renewable energy

Consumers are affraid that opening of electricity market will not offer energy with lower price but in opposite, as the Skandinavian experience showed. High price is a serious problem for Scandinavian consumer.

1.03.2010 price rised 3% - added was excise and network payment rised 1,5%

1.06.2010 - added was renewable energy payment 12,64senti/kWh = 0,81 euro/kWh

Renewable energy payment is payment appointed from state for financing energy produce from renewable energy sources and for combined energy production

Source for this slide and next 6 slides www.tuuleenergia.ee/about/statistika

Wind energy in Estonia. There was 142 MW wind energy

installed in Estonia in the end of 2009

Last year (2009) were installed:

39MW Aulepa Wind Farm (Eesti Energia AS),

9MW Vanaküla Wind Farm and

16MW Tooma Wind Farm (Nelja Energia OÜ)

in total the wind energy capacity in Estonia increased by 64MW in 2009

Wind energy in Estonia

There was 142 MW wind energy

installed in Estonia in the end of

2009.

The wind energy capacity in Estonia

increased by 64MW in 2009

Windparks in developing

379,38 MW wind energy will be developed in 2010-2013,

92,9 MW in 2010

126,98 MW in 2011

98,5 MW in 2012

61 MW in 2013

Wind energy projects

2010-2013

Wind parks developers and

planned wind energy in MW

Offshore

windparks

Plans 2014 .....

Hiiumaa 700 Nelja Energia OÜ

Liivi laht 1000 Eesti Energia AS

Neugrund 100-

200

Neugrund OÜ

2010 2011 2012 2013

Stasey OÜ 1,98

Skinest Energia OÜ 13,5

Tuuleenergia AS 18

Türisalu Tuulepark OÜ 0 0 0 21

Est-Wind Power OÜ 62 0 0 0

Nelja Energia OÜ 30,9 32 8 0

Raunistal AS 0 0 40 40

Eesti Energia AS 75 37

Environmental influence evaluationsPublic discussions

Negotiations with local municipalities

More environment friendly – less carbon dioxide emission

Produces energy as heat as well electricity, CHP are built near their consumer, this

allows electricity losses to be reduced and heat prices to be lowered

Smaler CHP are built in regions where the combined energy production is economically feasible and can ensure the local power supply with the lowest possible environmental impact.

Tartu 25MW on biomass and turf working CHP station started up in January 2009

Väo 25MW on biomass and turf working CHP station started up also in January 2009

Application: to built the Tallinn CHP station (litter and wood) 2x40MW

2009:Väo CHP 23 MW, Tartu CHP 23 MW

Aulepa WP 39 MW

2012: Pärnu CHP 22 MW, Ahtme CHP 22 MW

Narva WP 50 MW + WP 70 MW

2016: 500 MW windparks, Iru waste CHP 15 MW, Narva 10% biomass 43 MW

All needed energy could be produced from biomass, if to take to use 0,4 mln ha unused agricultural land and to grow there willow

1/3 energy could be produced from unused wood.

Turf and cane could be sources for 10% energy

Source : Estonian Land University

The price of energy produced by solar panels is 5 times higher than wind energy price

The price is not competition capable

Water resource in Estonia is small ( without Narva river)

Linnamäe and Keila-Joa hydroelectricity plants

Only 2-5% from energy production

It’s possible to cover 70% from energy consumption in Estonia in 2020 with renewable energy

Source: Possibilities to produce electricity from renowable energy source, Leo Rummel, Tallinn Technical University

Big renewable energy sources

Source : ww.mkm.ee/public/ENMAK.pdf

Oil shale dominates in energy produce

Small and infuenced electricity market

Renewable energy:

17,5% in 2006 25% in 2020

CHP in electricity brutoconsum

10,2% in 2007 20% in 2020

Fuels on base renewable energy sources:

0,06% in 2007 10% in 2020

Source: www.mkm.ee

Renewable energy production is in Estonia on good level but there are some potentitals to develop forward

Supports for produce of renewable energy in Estonia are good

Tiiu Müürsepp

Tartu Tarbijanõustamis- ja Infokeskus

Tartu Consumer Advice and Information Centre

tiiu.muursepp@ut.ee