Green Growth in the Baltic Tiger in Latvia, Lithuania and Estonia, the Energy Mix Continues to Be Characterized by High Dependencies on Oil Shale and Nuclear Energy
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baltic states Green growth in al eci the Baltic Tiger In Latvia, Lithuania and Estonia, the energy mix continues to be characterized by high dependencies on oil shale and nuclear energy. The planned renewal of the power plant fleet offers ideal opportunities for the implementation of renewable energies. Experts believe that especially wind power and biomass have a large potential. Country Sp Country uring many years, the Baltic Tiger states have the end of 2008. But also for the utilization of bio been registering dynamic economic growth, mass energy, the Baltic states provide good condi Eesti Energia, the state-owned Dwhich has led the energy demand in Latvia, tions. More than 40 % of the surface in these coun Estonian electricity provider, is Lithuania and Estonia to drastically increase. At the tries is covered by forests. already active in the onshore same time, these countries are looking at massive wind sector. In the future the cuts in the energy supply in the next few years as the Estonia: Energy supply company is planning to build majority of the existing nuclear power plants are undergoing change offshore wind farms as well. scheduled to be shut down. 4 Energia, an Estonian Photo: Eesti Energia / Rain Dorbek operator of renewable energy plants, estimates that In the course of the next few years, Estonia is poised the Baltic states will be confronting a gap of 3 GW be to see a change among the energy providers. About tween production capacities and consumption until 75 % of the oil shalefired power plants that togeth the year 2015. While the three Baltic Sea countries er cover 91 % of the national electricity consumption are already planning the construction of a new nucle have become outdated and are scheduled to be shut ar power station in collaboration with Poland, the down until the year 2013. In 2008, the price for do plant is not expected to be connected to the grid be mestic power supplies ranged at 8.1 €ct/kWh. As fore 2018. This means that an enormous potential for recently as September, the Estonian government renewable energy sources will open up being able to passed the decision on an action scheme with the secure the energy supply with shorter lead times. Si aim of increasing the share of renewables in the to multaneously, the strengthened implementation of tal energy consumption by 25 % until 2020. In 2005, renewable energy systems could help to lower the the share of renewable energies had still ranged at dependencies on Russian gas supplier Gasprom. 18 %. At the same time, the EU directive envisages Presently, the connection of the Baltic island electri that electricity from renewable sources must account city market to the EU is furthered though an expansi for 5.1 % of the electricity consumption until 2010. on of the transmission lines. In order to promote the utilization of renewable Especially in the utilization of wind power, the re energy sources in the country, the government at the gion offers a large potential. The coastal regions of beginning of 2005 had introduced a feedin tariff of the Baltic states reach average wind speeds of be 5.2 €ct for every kWh produced from renewables in tween 5.5 and 6.5 m/s and the feedin tariff in Latvia dependent of the energy form. However, the operator and Lithuania has brought about the installation of is obligated to announce the expected amount of elec wind turbines with a total capacity of 159 MW until tricity generated from the system one day in advance. 28 Sun & Wind Energy 11/2009 In May 2007, the feedin tariff was raised to 7.4 €ct/ Key figures for Estonia kWh. The incentive will be valid until 2010. With this, Area 45,228 km2 the electricity production as, for example, from wind plants is becoming more attractive for investors. How Capital tallinn ever, for providing the operators of PV systems with a profitable margin, the tariffs continue to be too low. Population 1.3 million (2009e) The maximum amount of energy promoted GDP per capita uS$ 21,000 (2009e) through the incentive has been capped at 200 GWh. Global radiation up to 1,170 kWh/(m2a) As an alternative, system operators can also decide oil shale: 91 % Sources of electrical natural gas: 7 % on a compensation equal to the market price for elec energy tricity and benefit from an additional bonus of others: 2 % 5.4 €ct/kWh. In this option, the promotion has been Installed capacities: PV 100 kW (2008) limited to a maximum of 400 GWh per year. Experts Solar thermal 1,970 m2 (2008e) at 4 Energia believe that the 400 GWh mark will be Wind 78 MW (2008) crossed as early as by 2010 due to the boom of wind Source: National institutions power. According to 4 Energia, the cap of 400 GWh equals an installed capacity of 150 MW and a share Top 5 in the European context. The company that was of about 4 % of the electricity demand in Estonia. founded in 2003 owns six production facilities with a From 2010 on, as indicates the Chamber of Foreign total capacity of 500,000 tons for manufacturing pel Trade of the Baltic states, the size of the feedin tar lets from sawdust. In the next five years, the compa iff will be subject to a differentiation into two class ny plans to expand its capacities by at least 25 %. es. While electricity generated from residues, turf Solar energy is not widely utilized in Estonia. and combined heat and power plants below 10 MW However, Crystalsol is an example of a company that is remunerated with 5.18 €ct/kWh, electricity pro is currently strengthening its module production. duced from other regenerative sources up to a capac Founded in 2008 as a spinoff from Tallinn University ity of 100 MW can be sold at a price of 7.4 €ct/kWh of Technology, Crystalsol today develops its PV mod to the state utility Eesti Energia. ules based on copper, zinc, tin and sulfoselenide (CZTS). For the modules that are produced in a rollto roll process, the company is aiming at production Offshore systems being planned costs below 0.50 €/W in the midterm. Meanwhile, stateowned Estonian electricity provider Eesti Energia, the largest employer in the country with more than 8,000 employees, has also discovered the opportunities of renewable energies. Last year, the company launched the first preliminary examinations for the construction of an offshore wind park off the Estonian coast. In total, the company is currently de veloping offshore projects with a total capacity of up to 900 MW. OÜ Nelja Energia and OÜ Neugrund are other examples. Both companies are currently plan ning offshore wind parks. OÜ Nelja Energia is plan ning the Hiiumaa offshore wind park that will have a capacity of between 600 and 1,000 MW. Neugrund offshore wind park that gets developed by OÜ Neugrund will have an expected capacity of between 100 and 200 MW on completion. In 2008, the onshore sector had been home to wind turbines with a capaci ty of about 78 MW. More onshore wind projects with a total capacity of more than 500 MW are currently in different development stages. Besides wind energy, biomass is currently the most important energy source in the country when it comes to the generation of electricity from renewable energies. Estonia’s key energy form still remains to be wood in form of sawdust. However, in turn, the uti lization of organic residues such as straw has not be come an established method. Presently, the market is mainly characterized by small and midsized com panies. According to company information, AS Graanul Invest based in Tallinn is the largest pellet until 2020, the Estonian government wants to raise the contribution of renewables manufacturer in the Baltic states and also among the in the total energy consumption up to 25 %. Photo: Reitgasse /aboutpixel.de Sun & Wind Energy 11/2009 29 country special bbalticaltic states the latvian riverscape in the neighbourhood of turaida: more Lithuania: danger of Key energy source biomass than 40 % of the surface in the a supply gap with more potential Baltic states is covered by forests – excellent conditions for the Presently, the nuclear power station in the neighbour According to the EU climate protection targets, the utilization of biomass. Photo: Pixelio hood of Ignalina covers almost fourfifth of the elec share of renewable energy must range at 23 % in the tricity demand in Lithuania. In total about 90 % of the future. In order to meet the targets, the Ministry of country’s primary energy demand is still imported to Economy in Vilnius is assessing to which extent the day. However, the power plant is scheduled to be shut power grid allows for further wind parks. According down at the end of 2009. The supply gap will be filled to 4 Energia, the data that has been collected so far with electricity from Belarus. Experts believe that, as suggests that the public grid in Lithuania would al a consequence, the electricity price will rise. In 2008, low for a total wind capacity of between 400 and the price for domestic power supply in Lithuania had 500 MW without having to make further adjust still ranged at 8.6 €ct/kWh. Currently, the share of re ments. Key renewable energy source in Lithuania is newables in the energy mix arrives at about 11 %, the biomass. Today, wood and wood residues are al share in the country’s electricity production is below ready used for the heating supply.