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Energy Policies Beyond IEA Countries Estonia 2013 Please note that this PDF is subject to specific restrictions that limit its use and distribution. The terms and conditions are available online at http://www.iea.org/ termsandconditionsuseandcopyright/ 2013 Energy Policies OECD/IEA, © Beyond IEA Countries Energy Policies Beyond IEA Countries Estonia 2013 One of the fastest-growing economies in the OECD, Estonia is actively seeking to reduce the intensity of its energy system. Many of these efforts are focused on oil shale, which the country has been using for almost a century and which meets 70% of its energy demand. While it provides a large degree of energy security, oil shale is highly carbon-intensive. The government is seeking to lessen the negative environmental impact by phasing out old power plants and developing new technologies to reduce significantly CO2 emissions. The efforts on oil shale complement Estonia’s solid track record of modernising its overall energy system. Since restoring its independence in 1991, Estonia has fully liberalised its electricity and gas markets and attained most national energy policy targets and commitments for 2020. It has also started preparing its energy strategy to 2030, with an outlook to 2050. Estonia is also promoting energy market integration with neighbouring EU member states. The strengthening of the Baltic electricity market and its timely integration with the Nordic market, as well as the establishment of a regional gas market, are therefore key priorities for Estonia. Following its accession to the Organisation for Economic Co-operation and Development (OECD) in 2010, Estonia applied for International Energy Agency (IEA) membership in 2011. This review of Estonia’s energy policies is part of the IEA accession process. It analyses the energy policy challenges and opportunities facing Estonia, and provides critiques and recommendations for future policy improvements. It is intended to guide the country towards a more secure and sustainable energy future. (61 2013 04 1P1) ISSN 2307-0897 978-92-6419079-5 €75 2013 OECD/IEA, © Estonia 2013 2013 Energy Policies OECD/IEA, © Beyond IEA Countries INTERNATIONAL ENERGY AGENCY The International Energy Agency (IEA), an autonomous agency, was established in November 1974. Its primary mandate was – and is – two-fold: to promote energy security amongst its member countries through collective response to physical disruptions in oil supply, and provide authoritative research and analysis on ways to ensure reliable, affordable and clean energy for its 28 member countries and beyond. The IEA carries out a comprehensive programme of energy co-operation among its member countries, each of which is obliged to hold oil stocks equivalent to 90 days of its net imports. The Agency’s aims include the following objectives: n Secure member countries’ access to reliable and ample supplies of all forms of energy; in particular, through maintaining effective emergency response capabilities in case of oil supply disruptions. n Promote sustainable energy policies that spur economic growth and environmental protection in a global context – particularly in terms of reducing greenhouse-gas emissions that contribute to climate change. n Improve transparency of international markets through collection and analysis of energy data. n Support global collaboration on energy technology to secure future energy supplies and mitigate their environmental impact, including through improved energy efficiency and development and deployment of low-carbon technologies. n Find solutions to global energy challenges through engagement and dialogue with non-member countries, industry, international organisations and other stakeholders. IEA member countries: Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Ireland Italy Japan Korea (Republic of) Luxembourg Netherlands New Zealand Norway Poland Portugal Slovak Republic © OECD/IEA, 2013 Spain International Energy Agency Sweden 9 rue de la Fédération Switzerland 75739 Paris Cedex 15, France Turkey www.iea.org United Kingdom Please note that this publication United States 2013 is subject to specific restrictions that limit its use and distribution. The European Commission The terms and conditions are available online at also participates in http://www.iea.org/termsandconditionsuseandcopyright/ the work of the IEA. OECD/IEA, © Table of contents TABLE OF CONTENTS 1. EXECUTIVE SUMMARY AND KEY RECOMMENDATIONS ....................................................................... 7 Executive summary ...................................................................................................................... 7 Key recommendations ............................................................................................................... 12 PART I POLICY ANALYSIS .......................................................................................................13 2. GENERAL ENERGY POLICY ................................................................................................................... 15 Country overview ....................................................................................................................... 15 Supply and demand ................................................................................................................... 16 Institutions ................................................................................................................................. 19 Key policies ................................................................................................................................. 20 Assessment ................................................................................................................................ 22 Recommendations ..................................................................................................................... 24 PART II SECTOR ANALYSIS .....................................................................................................25 3. ENERGY AND CLIMATE CHANGE ......................................................................................................... 27 Overview .................................................................................................................................... 27 Energy-related CO2 emissions .................................................................................................... 28 Policies and measures ................................................................................................................ 30 Assessment ................................................................................................................................ 34 Recommendations ..................................................................................................................... 37 4. ENERGY EFFICIENCY AND DISTRICT HEATING ..................................................................................... 39 Final energy use ......................................................................................................................... 39 Policies and measures ................................................................................................................ 41 Policies by sector ........................................................................................................................ 43 District heating ........................................................................................................................... 48 Legal and regulatory framework ................................................................................................ 49 Assessment ................................................................................................................................ 50 Recommendations ..................................................................................................................... 54 5. NATURAL GAS ...................................................................................................................................... 57 Policy overview .......................................................................................................................... 57 Supply and demand ................................................................................................................... 57 Imports and exports ................................................................................................................... 59 2013 3 OECD/IEA, © Table of contents Industry structure ...................................................................................................................... 59 Market overview ........................................................................................................................ 63 Natural gas supply security ........................................................................................................ 66 Assessment ................................................................................................................................ 67 Recommendations ..................................................................................................................... 68 6. OIL SHALE AND OIL .............................................................................................................................. 69 Oil shale .....................................................................................................................................
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