Estonian Development Strategy of Energy Related Technologies
Final Report
Pekka Huuhka Tõnu Hein Juhani Timonen Arina Lukovikova
25.5 .2007 Ministry of Economic Affairs and Communications
Estonian Development Strategy of Energy Related Technologies
CONTENTS
1 EXECUTIVE SUMMARY ...... 4 2 PROJECT METHODOLOGY ...... 8 2.1 GENERAL PROJECT APPROACH ...... 8 2.2 MAIN PROJECT ACTIONS ...... 9 3 BACKGROUND...... 10 3.1 THE STRATEGIC OBJECTIVES ...... 10 3.2 ENERGY INDICATORS ...... 11 3.3 GENERAL FACTS ...... 12 3.4 ELECTRICITY ...... 14 3.5 ELECTRICITY PLAN ...... 16 3.6 HEAT ...... 17 3.7 FUELS ...... 17 3.8 TECHNOLOGIES ...... 18 4 OBJECTIVES ...... 19 5 THE CURRENT STATE OF ESTONIAN ENERGY RELATED TECHNOLOGIES ...... 20 5.1 SWOT-ANALYSIS ...... 20 5.2 COMPETENCE /T ECHNOLOGY PYRAMIDS 2007...... 21 5.2.1 Production, Transmission, and Distribution of Electricity ...... 22 5.2.2 Heat Generation and Distribution ...... 23 5.2.3 Production of Fuels...... 24 5.2.4 Production of Energy Producing Technologies ...... 25 6 FUTURE DEVELOPMENT ...... 26 6.1 TRENDS ...... 26 6.1.1 Global and General Trends ...... 26 6.1.2 Customer and Market Based General Trends ...... 27 6.1.3 General Trends and Changes in the Branch...... 27 6.1.4 Technology Based Trends ...... 28 6.1.5 Environmental Trends ...... 29 6.2 COMPETENCE /T ECHNOLOGY PYRAMIDS 2013...... 30 6.2.1 Production, Transmission, and Distribution of Electricity ...... 30 6.2.2 Heat Generation and Distribution ...... 31 6.2.3 Production of Fuels...... 32 6.2.4 Production of Energy Producing Technologies ...... 33 7 KEY CONCLUSIONS ...... 34 7.1 NEW GROUPING OF DEVELOPMENT AREAS ...... 34 7.2 CONCLUSIONS DRAWN FROM THE ANALYSES ...... 35 8 DIFFERENT SCENARIOS ...... 37 9 FUTURE TARGET FOR ESTONIAN ENERGY POLICY ...... 38 10 VISION ...... 39 11 BOSTON MATRIX...... 40 12 KEY DEVELOPMENT AREAS...... 41 13 ROADMAP...... 42
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14 OTHER MAJOR ENERGY RELATED INITIATIVES ...... 42 14.1 EUROPEAN STRATEGIC ENERGY TECHNOLOGY PLAN ...... 42 14.2 ESTONIAN ENERGY RELATED INITIATIVES ...... 42 14.2.1 State Development Programme on the Utilisation of Oil Shale 2007–2015 (Ministry of the Environment, 15.02.2007) ...... 42 14.2.2 Energy Efficiency Target Programme 2007–2013 (Ministry of Economic Affairs and Communications, 15.02.2007) ...... 42 14.2.3 The Programme on the Promotion of Biomasses’ and Bio Energy Utilisation 2007–2013 (Ministry of Agriculture, 25.01.2007) ...... 42 14.2.4 European Renewable Energy Programme ...... 42 14.2.5 Energy Related Projects Financed by Enterprise Estonia ...... 42 14.2.6 Estonian Participation to European 6 th Framework Energy Related Projects...... 42 15 PRESENT RESOURCES AND FUNDING...... 42 16 RESULTS WITH TECHNOLOGY PROGRAMMES...... 42 16.1 TECHNOLOGY PROGRAMME TOOLS – GENERAL ...... 42 16.2 INTERNATIONAL BENCHMARKING : FINNISH TECHNOLOGY PROGRAMMES ...... 42 16.3 TECHNOLOGY PROGRAMME PREPARATION AND STRATEGY ...... 42 16.4 OIL SHALE PROCESS DEVELOPMENT PROGRAMME ...... 42 16.5 RENEWABLE SOURCES DEVELOPMENT PROGRAMME ...... 42 16.6 EMERGING ENERGY SOURCES DEVELOPMENT PROGRAMME ...... 42 17 TECHNOLOGY PROGRAMME MANAGEMENT IN ESTONIAN INNOVATION STRUCTURE...... 42 18 INTENDED RESULTS...... 42 19 RISK ANALYSIS ...... 42 19.1 RISK DEFINITION ...... 42 19.2 RISK MITIGATION ...... 42 20 APPENDICES...... 42 20.1 INTERNATIONAL BENCHMARKING ...... 42 20.1.1 Energy Production in Different Countries...... 42 20.1.2 Utilisation of Renewable Sources of Energy in EU ...... 42 20.1.3 R&D Budgets – International Energy Association (IEA)...... 42 20.1.4 R&D Budgets – USA ...... 42 20.2 WEB SURVEY ...... 42 20.2.1 Evaluation of Nine Basic Drivers of the Development of Estonian Energy Technologies .. 42 20.2.2 Evaluation of Importance and Estonian Level of Individual Technologies/Competences... 42 20.2.3 Evaluation of the Improvement Needs in Estonian Innovation System ...... 42 20.2.4 Opinions in Verbal Form...... 42 20.3 SOURCES AND PUBLICATIONS ...... 42 20.4 PEOPLE INTERVIEWED ...... 42 20.5 PARTICIPANTS IN WORKSHOPS ...... 42 20.6 STEERING COMMITTEE ...... 42
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1 EXECUTIVE SUMMARY
The objective for this survey was to create a concrete, focused development strategy of energy related technologies in Estonia.
The R&D activity in Estonia for energy related technologies during the last years has been growing, but is still in a relatively low level. Public funding via Enterprise Estonia in years 2004–2006 has been about 3 M€ and the number of projects 26. The scope of the projects is very wide, focus is missing, local and international cooperation between research institutes, universities and companies is limited, and also there are only few projects from SME (Small and Medium Enterprises) companies.
The strategy process that produced this report was designed to promote the creation of shared vision and commonly agreed priorities for development efforts. The strategy process brought together viewpoints of companies, research institutes, universities, and public sector in different energy related industry segments.
During the process it was possible to define three key development areas, which got mutual commitment and approval. These development areas are:
• Development of the whole oil shale end to end process. • Mapping, utilising, and developing renewable sources of energy. • Study and development of new emerging sources of energy.
Also following common horizontal objectives were identified:
• Reduction of energy consumption and improved energy efficiency. • Better environmental friendliness. • Increased R&D investments and IPR value generation.
Each of these development areas and objectives has distinct strategic target setting, time span and orientation between long term basic research, and fast industrial application.
When it was tried to define the topics, scope, and concrete actions for individual development projects, there was much more dispute and variety in opinions. Natural reasons for this are that the total field of energy related technologies is so wide, and that different stakeholders have different interests and views.
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Based on these key findings the concrete recommendation is to steer and facilitate the development by means of three well defined, planned, and managed technology programmes which last three to five years. Each technology programme will have its own strategy, steering committee, implementation plan, project manager, and risk level. Most of the public R&D funding to energy related technologies will be channelled via these programmes to individual development projects. It is also essential for the successful execution of the technology programmes that the present initiatives in different ministries will be collected under the same “umbrella” or at least coordinate the activities (e.g., utilisation of oil shale, Ministry of Environment). At the launch of each programme, the strategy and general level target setting of the programme will be defined and published, but the steering committee of each programme will be responsible of continuous adjustment of the strategy to meet the needs of Estonia. The steering committee will also select the individual projects to be funded within the programme and ensure that the projects match the strategic targets of the programme.
Some ideas for these projects were collected already in the strategy process but the final topics and actions will be defined by experts after the programme strategy and target setting have been fine tuned.
The following gives a short description of the different technology programmes.
Development of Total Oil Shale Process
Big oil shale reserves give Estonia high level of independence in production of energy. At the same time there is a pressure to replace fossil fuels with renewable sources of energy due to environmental issues, but also due to limited life time for oil shale and other fossil fuels. Price fluctuations and availability risks of imported sources of energy are additional challenges for the planning and development.
The future target is to maintain the high level of independence in whole energy balance. One of the natural key development areas is the whole oil shale process.
This means on the other hand development of technologies, which will improve the environmental friendliness and on the other hand having the focus in the total end to end process to avoid suboptimisation and in maximising the life cycle for oil shale. Practical examples of total optimisation are the development and utilisation of selective mining methods, avoiding to burn low concentration oil shale directly, modernisation of boiler technology, use of oil shale as raw material for chemicals, and collecting and using the ash and waste heat.
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Renewable Sources of Energy
There will be tighter European rules and directives for the use of renewable sources of energy instead of fossil fuels.
It is very essential for Estonia to map and develop technologies, which give the country possibilities to utilise local renewable sources of energy to the maximum extent. That’s the main driver to this key development area.
Utilising e.g., wind energy is to a large extent a political and investment decision rather than a technology development issue. Large scale use of wind power, however, has a link to the problems of energy balancing, transmission, and backup power, which are system level technology issues for the entire national electricity supply.
New Emerging Sources of Energy
Very many countries make basic and applied research in the field of new emerging sources of energy such as solar, fuel cells etc. There have not yet been major commercial breakthroughs. In this early stage it is still feasible for Estonia to invest in the development of the new emerging sources of energy and start an own technology programme. One of the main targets is to create technologies from which Estonian companies and research institutes can create IPR revenues.
Horizontal Common Objectives
Reduction of Energy Consumption and Improved Energy Efficiency
The energy consumption tends to follow the increase of GNP (Gross National Product) but Estonia has an ambitious target to stabilise the consumption and increase overall energy efficiency. These objectives are in the first hand much related to investments to energy transmission networks because in international benchmarking the losses in both heat and electricity transmission are very high and energy efficiency in consumption side is often quite low in Estonia.
People’s attitude plays also very important role in reaching these targets. Consumers and enterprises can be encouraged to save energy and use energy efficient products. Possible public sector actions are ranging from incentives and recommendations to laws that forbid wasteful practices.
Improved environmental friendliness
Directives and international agreements drive for improved environmental friendliness in all energy processes. The main issue at the moment is CO 2 emission but other development areas are active as well. At the same time individuals are getting more aware of the impacts of industrial processes to the nature and demand for sustainable development.
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A specific structural problem in energy efficiency improvement is caused by price regulation. When the distribution prices of energy are kept artificially low by state, there are no natural incentives for such efficiency improving investments that would have short payback times, when calculated with real world market prices.
Increased R&D investments and IPR value generation
Covering all technology programmes, the objective is to encourage SME companies to invest more in R&D and to improve the cooperation between universities, research institutes, and companies also internationally.
All of these development areas are very well in line with common EU initiatives, thus giving Estonia a good chance to contribute to EU programmes, and also to get some European funding for technology programmes.
Development of other energy related topics such as fusion energy on European level gives Estonia new competences and possibilities for technology transfer, but the decision about the level of participation in these activities is more political than technological.
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2 PROJECT METHODOLOGY
2.1 General Project Approach
The project approach was structured into nine distinctive modules, which are presented in Figure 1. The project starting point was the existing Estonian energy strategy, which was published in 2004 as well as other relevant information from Estonia and internationally.
Further information has been received by analysing a large number of recent public sources and publications, which are listed in appendix 1. This information has been complemented by Swot Consulting’s own information sources and experience in the technology sector.
One of the main objectives for the survey was to involve in information collection, workshops, and conclusions all the Estonian energy related stakeholders; companies, universities, research institutes, and public sector.
Based on the material dynamic SWOT-analysis and competence/technology pyramids for 2007 and 2013 were created, future trends identified, target, and vision for Estonian energy related technologies were created, key development areas were selected and technology programme approach for future development was defined.
Project was managed by Estonian Ministry of Economic Affairs and Communications project leader Ando Leppiman and the proposed approach and results were approved by the Steering Committee, which had members from all the different stakeholder groups.
Figure 1. General project approach.
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2.2 Main Project Actions
The project work was conducted through desk studies of public sources and publications, personal interviews, web survey, and expert workshops. The first workshops were organised in four different segments:
• Production and distribution of electricity • Heat generation and distribution • Production of fuels and • Production of energy producing technologies.
After noticing that many technologies and competences are relevant to several segments and the challenge was the number of different development ideas and the right priority, it was decided to combine the four groups and have one common workshop.
This final report includes the summary from different sources of information, conclusions and recommendations, and proposals for future actions and approach.
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3 BACKGROUND
3.1 The Strategic Objectives
The strategic objectives for Estonian fuel and energy sector presented here are based on ‘Long-term Public Fuel and Energy Sector Development Plan’, a strategy document of the Ministry of Economic Affairs and Communications from year 2004 The plan is being updated, and this technology strategy is one of the input documents for the updated Estonian Energy Strategy.
The main topics are:
• Ensure fuel and energy supply with the required quality and at optimal prices; • Ensure the existence of local generating power to cover the domestic electricity consumption needs and the supply of liquid fuel in compliance with law; • Ensure that by 2010 renewable electricity forms 5.1% of the gross consumption; • Ensure that by 2020 electricity produced in combined heat and power (CHP) production stations forms 20% of the gross consumption; • Ensure that the power network is completely modernised in approximately every 30 years; • Ensure that, in the open market conditions, the competitiveness of the domestic market of oil shale production is preserved and its efficiency is increased, and apply modern technologies which reduce harmful environmental impact; • Ensure compliance with the environmental requirements established by the state; • Increase the efficiency of the energy consumption in the heat, energy and fuel sector; • Until 2010, maintain the volume of primary energy consumption at the level of the year 2003; • Develop measures which enable the use of renewable liquid fuels, particularly biodiesel, in the transport sector; • Achieve the target of 5.75% share of biofuel in transport fuels by 31 th of December 2010 proposed in Directive 2003/30/EC, • Ensure that modern know-how and specialists are continuously available in all fields of the fuel and energy sector to promote technology development within the state and enable transfer of the modern energy technology; • Establish preconditions for the establishment of connections with the energy systems of the Nordic countries and Central European countries.
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3.2 Energy Indicators
Table 1 shows numeric targets for different energy indicators. Three main objectives are to replace oil shale with local renewable sources of energy, minimise the increase in total energy consumption and reduce the CO 2 emission.
2000 2010
Primary energy supply (PJ) 189 < 200
Oil shale consumption (mln t) 13.2 11–13 Proportion of renewables in primary energy 10.5 13–15 supplies (%) Proportion of renewables in electricity production 0.1 5.1 (%) Final consumption of electric energy (TWh) 5.4 6.5–8.0
Required net capacity of power stations (MW) 1980 2400–2650
Proportion of combined production in electricity 12–14 15–20 production (%)
Maximum base load of Estonian power system 1400 1500–1800 (MW)
Rate of electricity market openness (%) 10 35–40
Heat consumption (TWh) 8.5 8 Proportion of combined production in heat 33 35–40 production (%) Environmental pollution caused by SO 2 181 90–100 (% of the permitted level by 2008) Environmental pollution caused by CO (% of the 2 48 50–55 permitted level by 2008)
Table 1. Estonian energy indicators years 2000 and 2010.
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3.3 General Facts
Some general facts in Estonian energy production, consumption, and efficiency are following:
• The efficiency of primary energy consumption (the ratio of the final energy consumption to the primary energy consumed) in Estonia is approximately 51%, which is a low figure compared to e.g., Scandinavian countries thus supporting the target setting of improved energy efficiency. • In 2002, the supplies of primary energy were 193.8 PJ, and it was produced: – 61% of oil shale – 12% of wood and peat and it was used – 43% for the production of electricity – 24% for the production of heat.
State environmental objectives in the energy sector are:
• Further reduction of sulphur emissions, by 40% by 2010, based on the level of 1980. • Limitation of emission of pollutants as of 2010 to 100 000 t regarding sulphur dioxide, 60 000 t regarding nitrogen oxide, and 49 000 t regarding volatile organic compounds. • Bringing filling stations and terminals into compliance with the environmental requirements regarding volatile organic compounds by 2007. • Limitation of the annual emissions of sulphur dioxide from oil shale power stations to 25 000 t as of 2012. • Reduction of the permitted sulphur content of petrol and diesel fuel to less than 50 mg/kg by 2005, and less than 10 mg/kg by 2009.
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The alternative possibilities for Estonia in the development of power engineering are the following:
• To continue the renovation of Narva power stations on the basis of the circulating fluidised bed combustion technology. • To apply, in oil shale power industry, other technological solutions, such as combustion under pressure, mixing of oil shale with other (e.g., also renewable) fuels, large-scale production of shale oil and application thereof on the basis of the principle of distributed energy production etc. • To change the structure of the whole Estonian energy sector fundamentally, abandon oil shale power industry and concentrate on other, mainly imported energy carriers. The most likely alternatives for the solution are natural gas and coal. • To cooperate with other states – e.g., participate in a possible project for the construction of a new nuclear power station in Lithuania which already has the trained personnel and infrastructure necessary therefore.
If the circulating fluidised bed combustion technology in Narva power stations does not justify itself, development of the power engineering must be based on natural gas and/or coal.
Structure of education and research is out-dated and, due to underfunding, cannot support the modernisation of the energy sector sufficiently. Oil shale mining, production of shale oil, heat energy and electrical energy comprise one value chain and should be considered together in order to avoid losses and achieve optimal quality of products.
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3.4 Electricity
The present situation with electricity is:
• The net production capacity of electricity in the Estonian power system is ca. 2700 MW, during the summer period (from April to September) the net electricity output of power stations is between 400–1000 MW and during the winter period (from October to March) it is between 500–1600 MW. • In 2002, the gross electricity production of Estonian power stations was approximately 8.5 TWh and the domestic final consumption was approximately 5.3 TWh. • Eesti Energia AS produces ~ 97% of all the electric energy. • The structure of the power network is constructed for the transmission of electricity produced in Narva power stations to consumers (mainly to Tallinn) and restricts the development of the distributed electricity production. • Distribution network is unsatisfactory in certain regions and there are problems with voltage quality and interruptions in electricity supply. • Line transmission losses were this year reduced from 12.3% to 11.3% because of network investments and better control.
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In the future the targets are:
• To have 20% of the electricity consumption covered by CHP by 2020 (now 13%). Restricting factor is the needed heat load. • Electric energy consumption has been estimated to grow 2–3.75% annually. However, latest information suggests that this rate might be closer to 7% due to booming economy. • Deficit of the electric capacity arises in the immediate future due to unsuitable structure, old age of power stations,, and environmental restrictions. • Estonian electricity market must be totally open by end of 2012, 35% by end of 2008. • It is expected that when energy markets are opened, new power stations are not built by enterprises as the market price of electricity is too volatile to guarantee the investments. • The Baltic and Estonian power stations in Narva will remain the main power stations supplying Estonia until 2015. • The renovating cycle of the power network is approximately 30 years. • In order to raise the security of electricity supply and to cover the peak loads, construction of gas turbines in bigger cities is analysed. • By 2010, 300–360 GWh electric energy will be produced from renewable sources (5.1% of gross consumption). • By 2020, renewable electricity will cover up to 10% of the gross consumption. • The technical limit for the installation of wind generators in the Estonian power system is 400–500 MW, but this requires investments to power networks and power stations to ensure the transmission, regulation and the necessary reserves. Nature protection and noise aspects also may limit the building of wind farm, especially onshore. • In 2005, the total capacity of electricity windmills was approximately 30 MW. By 2030, it may reach 500 MW. • The network operator purchases the electricity generated from renewable sources at a price of 115 cents/kWh, up to certain limit of country total renewable production.
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3.5 Electricity Plan
Table 2 shows the future estimates for Estonian electricity capacity.
Period Years Load of capacity, MW of time 2000 2005 2010 2015 2030 Summer 400 480 580 700 1230 Net base load of power stations Winter 600 720 870 1050 1850 Capacity of power stations Summer 300 360 440 530 920 necessary to cover intermediate part of the load curve Winter 450 540 650 790 1390
Net dispatchable peak capacity Summer 200 240 290 350 620 of adjusting stations necessary to cover load curve peaks Winter 250 300 360 400 770 Maximum net output of power Summer 900 1080 1310 1580 2770 stations Winter 1300 1560 1880 2280 4010 Summer 90 110 130 160 280 Regulation reserve Winter 130 160 190 230 400 On a regular Hot emergency reserve 100 100 100 100 100 basis On a regular Cold reserve 300 300 300 300 300 basis Total necessary maximum net Summer 1400 1600 1800 2100 3500 capacity of power stations, Winter 1800 2100 2500 2900 4800 rounded The same, taking account of the Summer 1540 1760 1980 2310 3850 10% export of electric energy Winter 1980 2310 2750 3190 5280
Table 2. Electricity plan.
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3.6 Heat
The basic facts for heating are:
• Heating and cooling houses takes in Estonia in average 250kWh/m2, which is 2.5 times typical Scandinavian figure. • Combined heat and power production based on biomass is restricted by heat load. Heat production is ca 8–9 TWh annually. In 2002, 38% of the heat in boiler houses was produced of natural gas and over 45% of local fuels (oil shale, peat, wood, shale oil). • Average calculated losses in heat utility lines are approximately 18.5% (in Finland approximately 6%), but due to a long payback, only approximately 2% of the pipelines are replaced by pre-isolated pipes per year. • District heating has formed approximately 70% of all heating. • Heat consumption is inefficient and the possibilities for energy conservation in the cities are great. • The state supports the formation of optimal district heating regions in cities. • Heat pumps enable considerable energy conservation. Investment expenses restrict a wider spread of earth heat pumps. • Although building regulation prescribes level of insulation for new houses there is no interest of real estate developers to exceed those norms • The short term trend of heat consumption is decreasing, but development of new residential areas and raising living standard will raise the need for central heating in coming years.
3.7 Fuels
Oil shale covers today more than 90% of fuels used in Estonia. The plan was to increase the utilisation of natural gas but due to price increase and risks with availability, the target now is to increase the share of local renewable sources of fuel.
• Mining and use of oil shale cause great environmental damage. • At consumption volume of 12 M t/a, the active supplies of the now operating mines and quarries of oil shale will last until 2025. If new mines are opened, total active supplies will last 60 years. • Oil shale is sold for 130–182 EEK/t. Price does not reflect caloric value or content of limestone. • Selective mining would enable to leave limestone in the point of mining and produce differentiated products of shale oil better suited for electricity and oil production. • 30% more shale oil could be extracted if technology of filling mines with ash, semicoke, and concrete could be applied. At the same time there would be much less waste deposits on the surface. • Government is now giving mining rights away with no charge based on applications
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Other fuels
• Maximum natural gas usage is now 5.5 Mm 3/day (at -20ºC). • Coal is not used for the production of electricity in Estonia. • By 2010, the consumption of motor vehicle petrol will be 328 000 t/a, and the consumption of diesel fuel 208 000 t/a. • By 2011, the proportion of renewable fuels has to be 5.75% of all transportation diesel and petrol fuels. At the moment, planting of energy forest and energy grass (e.g., Phalaris arundinacea, Päideroog ) plantations is not economically feasible, although the existent agricultural machinery is suitable for the cultivation and harvesting of energy grass. • It is possible to use straw for the energy production. E.g., the local heating system of Tamsalu town switched over from shale oil to straw because of price. Daily consumption of straw is 4t. Economical transport distance is restricted. • 800 000 hectares of productive forest provide max 100 000 m 3 of tops and branches/year. At present 16 000 m 3 are sold by government agency RMK (State forest management centre). • There is a substantial production of wood pellets in Estonia. The production is exported mainly to Sweden, availability of sawdust being the limiting factor of production. • Firewood is exported and the price in the country is now market price 400–500 EEK/m 3.
3.8 Technologies
Energy related technologies in Estonia are today mostly related to oil shale process.
• In terms of desulphurisation rate, Estonian energy production must comply with EU Directive 2001/80/EC by end of 2007, with a special transition period until end of 2015 for named plants in Ahtme, Narva, and Kohtla-Järve. • Compliance with desulphurisation directive will require investment in excess of 10.000 MEEK. • Producing shale oil using the Kiviter technology has problems which require large investments e.g., storage of the semicoke emission of sulphur compounds contained in the produced gas. • By 2030, distributed micro-energy may spread widely based on fuel elements, depending on developments in the energy technology. • Combustion under pressure will increase the efficiency of oil shale burning from the present 35% to 40–45%. • Galoter type of pyrolysis process adapted to Estonian needs is currently being investigated and developed by at least four different companies in parallel.
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4 OBJECTIVES
Estonian Ministry of Economic Affairs and Communications has prepared R&D and Innovation Strategy that addresses key technology development areas for the country. The strategy covers the industrial branches and technologies that will drive the success and growth of industrial activity in Estonia and are the focus areas for the next financial perspective 2007–2013 of EU. Energy is one of the key areas and there will be national development programme for it.
Long term development goals include the improvement of energy efficiency, reduction of emissions and increasing of the diversity of energy sources. A number of development initiatives are active for the time being. In order to ensure the success of development efforts and efficient use of resources the Ministry wants to focus and align the development.
This survey will provide input for national development programmes. By bringing together main research, industry and administration parties, the strategy process creates common determination and alignment of national development efforts.
The objective of the project is to create a concrete, focused Development strategy for energy related technologies in Estonia. The strategy can be used to guide the national development efforts in the EU programme period 2007–2013.
The strategy process is designed to promote the creation of shared vision and commonly agreed priorities for development efforts. The strategy process will bring together viewpoints of research institutions, administration, and different energy related industry segments:
• Production, transmission and distribution of electricity. • Heat generation and distribution. • Production of fuels. • Production of energy producing technologies.
Additionally the project provides a platform and methodology for future maintenance and updates of the national technology development strategy.
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5 THE CURRENT STATE OF ESTONIAN ENERGY RELATED TECHNOLOGIES
5.1 SWOT-analysis
Strengths Weaknesses • High energy independence due to oil shale • Oil shale dependence, oil shale reserves will last • Vertically integrated financially strong energy for 20 to 60 years company • Centralised production of electricity and heat • Availability of renewable fuel demands long distribution distances • Availability of arable land • Both electricity and heat distribution networks • Dynamic attitude in society need massive investments to improve efficiency • Lean and flexible organisations and to reduce losses • Centres of (scientific) Excellence at universities • Rules and legislation do not support innovations and investments to energy related technologies – Usage of local fuels – Oil shale pricing is not depending on quality and grade – Energy efficiency improvements – Insulation rules • Poor implementation of national strategies and plans • Partly uncoordinated research activities • SME companies have very low investment level to outsourced R&D and low capacity of inhouse R&D.There is no tradition of cooperation between SMEs and universities and research institutes
Opportunities Threats • Improved efficiency of the whole electricity value • Restrictions in the use of oil shale chain • Potential risks caused by Russian electricity • Interconnections with neighbouring countries to system (technical, commercial, political) increase flexibility, reliability and balancing • NIMBY (Not in my backyard) effect restricting capacity investments • New rules and legislation to encourage energy • Potential sharp increase of electricity prices innovations • Need of financing for modernisation of • Coordinated development programmes for usage infrastructure of local renewable sources of energy and energy • No sustainable political decisions – lack of efficiency alignment • Joint Baltian Nuclear Power Plant in Lithuania • Energy sector does not attract good young gives alternative source of energy (needs professionals which is causing lack of skilled political agreement and decision) work force
Table 3. SWOT-analysis.
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5.2 Competence/Technology Pyramids 2007
This chapter summarises the results of web survey, interviews, and workshops in the form of technology pyramids presenting the status of Estonian energy related technologies in year 2007.
During the strategy work a large number of distinct technology/competence areas were assessed. The evaluations are presented in more detail in chapter 15. The presented technology/competence pyramids 2007 are more generic to clearly indicate the present situation and the level of competence in Estonia.
In technology pyramids, the technologies/competences have been placed in three fields of a triangular graphic element. The fields describe the national level of important technologies/competences:
Spearheads are subjects, where Estonia has verifiably internationally top level know-how in a significant scale.
Distinctive level technologie s are subjects, where the national level is remarkably high in e.g., regional comparison.
Key technologies are areas that are important for the nation. In many cases there is good level know-how in Estonia, although similar level of expertise can be found also abroad.
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5.2.1 Production, Transmission, and Distribution of Electricity
Spearheads • Production of electricity from oil shale
Distinctive level technology
Key technology
• Transmission network • Balancing • Cabling • Wind energy design/management power
Figure 2. Competence/technology pyramid 2007 of production, transmission, and distribution of electricity. Arrows illustrate the development of a technology 2007–2013.
At present, Estonia has spearheads related to use of oil shale for electricity production. Combustion technologies for oil shale have some distinct features, but a lot of the necessary know-how is related to more general technologies of mixed fuel boilers.
Essential subjects are the development of the transmission network for efficiency and reliability, and the new challenges brought about by the increasing use of wind power.
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5.2.2 Heat Generation and Distribution
Spearheads
Distinctive level technology • Small size boilers
Key technology • Energy efficiency of • Reducing • Replacement of • Heat pumps buildings heat loss es in fossil fuels with networks renewable in heating
• Hydronic balancing • Cogeneration plants • Use of residual heat of processes
Figure 3. Competence/technology pyramid 2007 of heat generation and distribution. Arrows illustrate the development of a technology 2007–2013.
Heat production and distribution system in Estonia has a great potential for efficiency improvement. This will require infrastructure investment, but also technological renewal. There is a lot of good level know-how in the country, but no specific subject stands out clearly in international comparison within Baltic Rim/EU.
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5.2.3 Production of Fuels
Spearheads • Oil shale conversion
Distinctive level technology
Key technology • Combustion • Woodchip • Mining • Peat technologies (e.g., usage technologies processing waste, pellets) • Biogas production • Liquid bio fuels • Solid biomass fuel technology
Figure 4. Competence/technology pyramid 2007 of production of fuels. Arrows illustrate the development of a technology 2007–2013.
Fuel producing industries in Estonia can be divided to oil shale process and diverse biofuels. In the processing of oil shale, and e.g., production of oil shale and chemicals, Estonia has at present unique competences. There is also some production of wood pellets that produce export income.
Mining is an essential link in the total value chain of oil shale, but the technologies used are mostly in use also in the production of other minerals. The problems and solutions of utilisation of different biofuels are essential for the future, and common with many other countries.
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5.2.4 Production of Energy Producing Technologies
Spearheads
Distinctive level technology
Key technology • Semiconductor • Small scale • Hydrogen • Fuel cell converter combined power based energy technology technology generation technology • Fusion technology • • Energy Storing Nuclear technology • Combustion technologies
Figure 5. Competence/technology pyramid 2007 of production of energy producing technologies. Arrows illustrate the development of a technology 2007–2013.
This pyramid consists of a variety of energy production and conversion technologies, which may have an influence in the energy solutions of Estonia in shorter or longer range.
In addition to the technologies playing a role in own energy solutions of Estonia, there is qualified know-how in Estonia about subjects, where the research and development takes place in international pursuits of new revolutionary solutions for the energy future of the mankind. The participation in this work is motivated by the decision of Estonia to be a good member of the international community, and as such is subject to political decisions rather than technology considerations. Estonian contribution to fusion research is a good example.
Applied research in solar cell technologies is on advanced level in Estonia, and utilised commercially through internationally operating product vendors, without much linkage to the national energy problems or their solutions.
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6 FUTURE DEVELOPMENT
6.1 Trends
Trends will be analysed by looking at the expected development in the branch from different angles of view (5-basket analysis, Figure 6):
Global and
general trends
Customer and General trends market based and changes trends in the branch
Technology Environmental trends based trends
Figure 6. 5-basket analysis.
6.1.1 Global and General Trends
Global and general trends indicate possible changes that are common to all industries.
• Constant change of industry structure and moving of functions from country to another. • Rapid increase in energy consumption. • Volatility of the price of gas and oil in short term and increase in long term. • Political instability and uncertainty. • Energy production and delivery is used to create political pressure. • Because of energy deficit each country must cover own consumption. • Need for decentralised energy systems due to increasing insecurity.
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6.1.2 Customer and Market Based General Trends
Customer and market trends predict the possible changes in market situation and customer behaviour.
• Use of local renewable energy sources increases. • Energy efficiency is improving. • Shortage of liquid fossil fuels as compared to the need is 40Mbbl/d. • Environmental concerns growing. • Energy saving efforts will take place. • Interest to new fossil energy sources will grow alongside with price. • Alternative energy technologies are more feasible. • Energy production structures will change. • New buildings increase total heat consumption, offsetting the effect of efficiency improvement. • Renovation of buildings improves energy efficiency in heating. • Heat losses in pipelines are big (18–20%), replacement of piping is slow/costly.
6.1.3 General Trends and Changes in the Branch
General trends show the possible changes in Estonian energy related industry.
• New technologies for alternative energy sources will emerge – Micro production of electricity – Hydrogen based energy technology. • Increasing share of local renewable fuels. • Need for decentralised energy systems due to increasing insecurity. • Small (< 50MW el.) cogeneration plants using woodchips and other renewable energy sources are being built. • Alternative energy technologies are more feasible. • Constant change of industry structure and moving of functions from country to another. • Rapid increase in energy consumption. • Volatility of the price of gas and oil & increasing long trend.
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6.1.4 Technology Based Trends
Technology trends indicate future changes in energy related technologies.
• Improvement in whole oil shale end to end process technologies – Selective mining will replace drilling and blasting in both underground and open mines – Chemical process. Processes for enrichment of fine grain fraction (0–25mm) of oil shale would enable to increase caloric value from 8.5 to 11 MJ/kg. Additionally there will be 15% less ash and less transportation cost of limestone and 20% less of CO2 emissions – Combustion (CHP) – Improved environmental friendliness – Utilisation of ash and other waste. Filling of mines with ash, limestone and concrete (artificial pillars) would enable to increase the yield by 30% in underground mining. • Real time performance and maintenance monitoring. • Automation of the monitoring and control of network (AMR – Automated Meter Reading). • Improved efficiency in distribution of electricity and heat – Material technology – Isolation – Air cables are replaced with underground cables – Possibilities to use electrical networks also for other purposes. • New semiconductor converter technology enabling higher efficiency. • Energy storage technologies (super capacitors, flywheels). • Regeneration of energy in industrial processes and appliances. • Own energy consumption of electricity generating processes decreases. • New energy producing technologies will be more competitive in the market – Biogas production – Biomass and pellet combined with small and efficient boilers – Low temperature pyrolysis of organic matter – Development of combination fuels combining peat, oil shale, and waste – Fuel cells – Wind – Heat pumps – Solar. • In distant areas savings in network will affect the competitiveness of alternative energy producing technologies. • Nuclear energy • Heat recovery from waste water technologies
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6.1.5 Environmental Trends
Environmental trends list the changes in legislation and directives, and increased awareness of environmental effects.
• Environmental impact of whole life cycle of products and related costs is increasingly a competitiveness issue. • Environmental awareness is increasing in policy making. • Environmental sustainability is a recognised target. • Citizens are using their rights to claim and block susceptible investments (NIMBY). • More demanding environmental rules and regulations – CO 2 emissions (Kioto agreement) – CO 2 free technologies are increasing in alternative energy technologies – Sulphur content of liquid fuel oil can now be 1%. SO2 is a problem – Environmental taxation drives changeover from shale oil to gas, peat, and biomass. • Use of low calorific gas for energy production. • Emission taxes on semicoke will affect competitiveness of Kiviter technology. • Recycling and reuse of materials – Investigation of possibilities of using limestone from oil shale mining as building material – selective mining as enabling technology – Improved recycling of municipal waste – Use of ash from Narva power stations to fill underground mines, and as a building material.
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6.2 Competence/Technology Pyramids 2013
Competence/technology pyramids 2013 summarise the findings of web survey, interviews, and workshops in the form of technology pyramids describing the vision for the coming five years.
6.2.1 Production, Transmission, and Distribution of Electricity
Spearheads • Production of electricity from oil shale
Distinctive level technology • Transmission • Balancing network power design/ management
Key technology • Cabling • Wind energy • Monitoring and control of networks (distribution network and end user interface)
Figure 7. Competence/technology pyramid 2013 of production, transmission, and distribution of electricity. The bolded technologies have appeared after 2007.
In the analysis of electricity chain from production to consumption, the focus has been in technologies that are expected to have a reasonable impact in Estonian energy system in a time scale of ca. 5–10 years. So e.g., solar cells and hydrogen economy are not discussed here, although they may play an important role in electricity production in a longer period. There is a lot of development potential in Estonian electricity system, and results can be obtained in a quite short time frame.
The performance and eco-efficiency of the oil shale process is one of the main challenges related to electricity production, including the production and use of conversion products of oil shale (generator gas, shale oil). The vision is that the aspects of efficient and environmentally friendly electricity production using oil shale will be well understood and applied, at the same time as renewable sources of electricity, most notably wind power, are actively developed.
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The technology development of wind power itself is a well established branch with several commercial vendors, and the needed competences from Estonian perspective are related to skilful selection, acquisition, and use of commercially available solutions. The associated problems of balancing power and transmission network optimisation are more specific to Estonia and will require national focus.
6.2.2 Heat Generation and Distribution
Spearhead s
Distinctive level • Small size boilers technology • Reducing • Replacement • Cogeneration heat losses of fossil fuels with plants in networks renewable in heating
Key technology
• Energy efficiency of • Heat pumps • Hydronic • Use of residual buildings balancing heat of processes
Figure 8. Competence/technology pyramid 2013 of heat generation and distribution.
In order to harvest the efficiency improvement potential in the heat production and transmission system in Estonia, specific competences and skills need to be created. At the same time of network improvement, a shift towards cogeneration of electricity and heat using renewable fuels will be in focus.
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6.2.3 Production of Fuels
Spearheads • Oil shale conversion
Distinctive level • • technology • Combustion Mining Solid technologies technologies biomass fuel (e.g., waste, technology
pellets) • Liquid biofuels Key technology
• Woodchip • Biogas • Peat • Biodiesel usage production processing
Figure 9. Competence/technology pyramid 2013 of production of fuels. The bolded technologies have appeared after 2007.
In the production of oil shale, the application of mining technologies to oil shale specific challenges, e.g., selective mining and filling of emptied mines will be nationally developed. The increased use of biofuels will be supported by stronger R&D in both solid and liquid biofuel technologies. In subjects, where there is well established supply of commercial solutions in Baltic Rim/EU area, the national know-how development will be directed towards effective adoption and use of the available technologies.
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6.2.4 Production of Energy Producing Technologies
Spearheads
Distinctive level technology • Fuel cell technology • Energy storing
Key technology • Semiconductor • Small scale • Hydrogen converter combined power based energy technology generation technology • Combustion technologies • Nuclear technology
Figure 10. Competence/technology pyramid 2013 of production of energy producing technologies.
Among diverse energy production technologies energy storing has a special importance for Estonia because of growing use of wind power and lack of possibilities to use hydro power stations for balancing. Fuel cell technology is an internationally advancing subject, where there may be possibilities for national contribution in applied research. Other technologies, like nuclear technology, require a certain level of national competence maintenance in order to be capable for technology transfer and e.g., possible participation in international joint efforts.
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7 KEY CONCLUSIONS
7.1 New Grouping of Development Areas
In the previous chapters of this document, we have followed the original division of the entire field of energy technologies in the following segments:
• Production and distribution of electricity, • Heat generation and distribution, • Production of fuels and • Production of energy producing technologies.
The division of technologies to these four groups was somewhat arbitrary, and during the work it soon became obvious that they are strongly interconnected. Figure 11 shows examples of energy technology subjects that cross the borders of the segments.
Figure 11. Examples of energy technology subjects that cross the borders of the segments.
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In the strategy process, a more adequate way to classify the field was developed. This takes better into account the integrity of value chains, and especially the different character of the development actions that are suitable for each topic. In the final conclusions and recommendations we have used the division of the vast field of energy technologies into three groups of subjects:
• Total oil shale process. • Renewable sources of energy. • New emerging sources of energy.
The target setting, the participants, and possible means of development are different in each of these groups.
7.2 Conclusions Drawn from the Analyses
The main contribution of the different phases of the strategy process to the final result in a way is presented in Table 4.
Phase Main contribution
Main value chains, problems, visions, Key person interviews interconnections between segments and subjects, industry structure etc.
Importance and status of different subjects and Web survey technologies; comments.
Characteristics and main problems of each Workshop 1 (per segment) segment.
Main themes and scenarios for development; new grouping of development subjects Workshop 2 according to target setting instead of segments. Selection of key development areas.
Table 4. The main contribution of the different phases of the strategy process.
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Conclusions
Following conclusions are drawn from all the information collected in the different phases of the project:
• At present, there is a wide diversity of development needs and initiatives. • Due to the environmental considerations there is an urgent need to modernise the present energy system that is based on combustion of oil shale. • Preservation of energy independence (especially independence of single source natural gas deliveries from Russia) is a critical requirement. • On a short and middle time frame, oil shale is needed to retain the independence. • Large parts of energy infrastructure are outdated and there is a lot of potential for efficiency improvement by infrastructure modernisation. • Price regulation (State subventions) cause a problem for efficiency improvement: When the distribution prices of energy are kept artificially low, there are no natural incentives for such efficiency improving investments that would have short payback times, when calculated using real world market prices. • Although energy efficiency will be improved and energy preservation measures will be implemented, the GNP of Estonia is expected to grow so fast that it is not realistic to expect a decrease in total energy consumption. • In the present value chains of oil shale utilisation there is a lot of development potential in cooperation of the actors, in efficient development of technology, and in the use of the innovation potential. • Increase in the share of renewable sources in energy production is necessary in any case. The scope, time frame, resources, and international cooperation needed for the development of renewable fuels are different from those relevant in the improvement of oil shale end to end process. • There are research groups in Estonia doing qualified work in the fields of various emerging new energy technologies. These technologies do not have substantial application volumes today, but may be essential in the future. In some cases this research has already brought IPR income to Estonia • In order to ensure goal-oriented and aligned long term development actions it is not enough to select some key development subjects and allocate funds to those. It is even more essential to create a continuous process with a capability to continuously shape its strategy and allocate available funds to best development initiatives in a way that serves the most essential national goals.
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8 DIFFERENT SCENARIOS
During the strategy process it was very much discussed about what should be the main driver in development of Estonian energy related technologies.
Based on mostly three main facts:
• volatility of the oil and gas price in the short term and increase in then long term, • uncertainty of availability of imported sources of energy and • present dependence on oil shale
it was decided that the level of independence in whole Estonian energy balance is the key critical objective.
Following figure (Figure 12) illustrates the source of energy and the location of energy production. The sources of fuel which are both used and produced in Estonia give the maximum level of independence.
Imported Estonia
• Oil shale and shale oil • Local renewable sources of energy - Waste • Biodiesel - Wood chips • Natural gas - Pellets • Fossil fuel for cars - Firewood • Nuclear power - Biomass • Fusion - Bio fuels - Etc. • Wind • Solar energy • Hydro energy
Figure 12. The source of energy and the location of energy production.
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9 FUTURE TARGET FOR ESTONIAN ENERGY POLICY
In the development strategy for energy related technologies it is important to identify the most important driver which is the overall objective for Estonian energy policy.
Based on several factors the level of independence in total energy balance was selected to be the key success factor in the future.
The target statement for Estonian energy policy was defined in the following form:
Estonia’s independence in total energy balance will remain on the level 60% in spite of increasing consumption
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10 VISION
The strategy process resulted in the following vision statement:
Estonia is one of the worlds leading developers of technologies for oil shale processing and low grade oil resource utilisation.
Estonia has high competence level of utilising other sources of energy and maximising the use of local renewable energy sources in innovative, environment friendly, and effective manner.
Efficiency and energy saving are common objectives for all Estonian energy related technologies
Estonia will develop new technologies for emerging sources of energy
IPR revenues of Estonian enterprises and research institutes are one of the key criteria to follow up the implementation and success of the strategy.
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11 BOSTON MATRIX
The Boston matrix (Figure 13) describes the importance and risk for different development areas. The natural and low risk choices for Estonia are the further development of oil shale utilisation and technologies and the overall energy efficiency.
The biggest interest and fastest market growth globally are related to study and utilisation of renewable sources of energy. There the challenge is to select the most interesting and realistic development areas for Estonia.
The question marks are the technologies and energy sources where very much basic research is done but the real technological and/or commercial breakthrough is still missing. It’s also one principal decision whether Estonia should utilise public funding for technologies, which will be mainly used in other countries in the future.
Figure 13. The Boston matrix.
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12 KEY DEVELOPMENT AREAS
During the process three main development areas and horizontal common objectives were clearly identified. These are also very well in line with EU energy strategies, giving Estonia excellent opportunity to contribute to joint European development initiatives and also to get EU funding for national development programmes.
The key development areas are:
• Total oil shale process – Mining – Chemical process – CHP – Power and heat – Transmission and distribution of electricity – End users. • Renewable sources of energy – Bio fuels – Biomass – Waste – Wind. • New emerging sources of energy – Solar – Fuel cells – Fusion – Hydrogen – Innovations for energy efficiency improvements – Others.
Common horizontal objectives:
• Reduction of energy consumption and improved energy efficiency. • Better environmental friendliness. • Increased R&D investments and IPR value generation.
The main criteria for implementation, success measurement and follow up must be created as part of the three technology programmes but Estonian enterprise and research institute IPR revenue generation was considered to be one of the most interesting common criteria for all areas.
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13 ROADMAP
Following roadmaps (Tables 5 and 6)) give the overall picture of future development, priority and expected time span of the results for different development areas and main topics for coming years.
Development 2007–2008 2009–2010 2011–2012 2013 + area • Development • Development • Utilisation of • Utilisation of and utilisation of Galoter new boiler and world class of selective enrichment smoke gas end to end mining technology cleaning process for technologies • Replacement technologies low grade oil Total oil for both open of old boilers to reduce the resources shale pit and with new CO 2 emission underground fluidised bed • Develop process mines technology technologies for utilisation of ash and waste heat from boiler plants • Define the • Start applied • Commercialise • Have more targets for research for first than 10% of technology selected local innovations of energy programme renewable local production Renewable • Map and study sources of renewable covered with international sources sources of local sources of energy benchmarking • Transfer and energy renewable utilise e.g., sources of wind energy energy technologies
• Define the • Start basic • Commercialise • Sell first IPR targets for research for first licenses technology selected new breakthrough programme energy application New • Map and study sources emerging international sources of benchmarking energy
Table 5. Future roadmap for three technology programmes.
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Common objectives for all development areas 2007–2008 2009–2010 2011–2012 2013 +
• Study and • Map and • Map and • Replace the define the develop develop old biggest losses remote- energy saving transmission in energy monitoring technologies networks on efficiency and continuous • Map the maintenance basis Reduction in different technologies • Utilise modern energy solutions • Investments high energy • Set the target for electricity efficient consumption for energy and heat electric and improved consumption transmission appliances energy and networks efficiency proactively • Active ruling encourage and legislation with rewards people to change their consumption behaviour
• Define the • Map and • Invest to the • Constantly target setting develop equipments follow and and time technologies and benchmark schedule which either processes the state-of- improve the which improve the-art energy Environmental existing environmental processes friendliness processes or friendliness and create new implement the more most suitable environmental and best ones friendly to Estonia process
• Map the • Develop • Sell IPR present private licenses situation structures to Increased R&D • Resources in commercialise investments universities, and protect and IPR research IPR revenue institutes and generation companies • R&D investment
Table 6. Future roadmap; common objectives for all development areas.
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14 OTHER MAJOR ENERGY RELATED INITIATIVES
There are plenty or other energy related initiatives both in Europe and in Estonia. Some of the topics are so close to the selected development areas that these should either be combined to the technology programmes or at least be coordinated together.
14.1 European Strategic Energy Technology Plan
The Commission of the European Union has set some important objectives for the development of energy systems in the member states and proposed the preparation of joint European Strategic Energy Technology Plan (SET-Plan; Towards a European Strategic Energy Technology Plan, COM (2006).
The Commission states that Europe and the rest of the world have not reacted quickly enough to increase the use of low-carbon energy technologies or to improve energy efficiency. As a consequence, climate change has become a real threat and security of energy supply is worsening.
The Commission has already increased the budgeted spending in energy issues in the Seventh Framework Programmes (50%, from 574 M€/year to 886 M€/year), as well as the Intelligent Energy-Europe Programme (100%, from 50 M€/year to 100 M€/year), and sees this as a step in the right direction that Member States and industry should at least match.
The Commission of EU points proposes a strategic energy policy objective: by 2020 the EU will reduce its greenhouse gas emissions by at least 20% compared to 1990. In addition, by 2050 global greenhouse gas emissions must be reduced by 50% compared to 1990 levels.
As a vision of Europe’s energy future the Commission states that Europe's energy system must rapidly progress on four main fronts:
• The efficient conversion and use of energy in all sectors of the economy, coupled with decreasing energy intensity; • The diversification of the energy mix in favour of renewables and low- carbon conversion technologies for electricity, heating and cooling; • The decarbonisation of the transport system through switching to alternative fuels; • Full liberalisation and interconnection of energy systems, incorporating “smart” information and communication technologies to provide a resilient and interactive (customers/operators) service network.
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In order to be able to compete in global markets, the European Union and its Member States have to both to increase their investment, public and private, and to mobilise all these resources much more effectively to address the mismatch between the sheer magnitude of the challenge and the underlying research and innovation effort.
The Commision proposes SET-Plan with target to match the most appropriate set of policy instruments to the needs of different technologies at different stages of the development and deployment cycle.
The strategic element of the plan will be to identify those technologies for which it is essential that the EU as a whole finds a more powerful way of mobilising resources in ambitious result-oriented actions to accelerate development and deployment. Possible examples of such large-scale initiatives, which are beyond the capacity of any single country, could be biorefineries, sustainable coal and gas technologies, fuel cells, and hydrogen and Generation IV nuclear fission.
The Commission intends to put forward a first SET-Plan for endorsement by the 2008 Spring Council.
The SET-Plan will not be an isolated initiative, but will build on and complement existing initiatives, such as national energy strategies and reviews. This Estonian Energy Technology Strategy is in accordance with the vision of the Commission about Europe’s energy future. It is meant to be one of the building blocks of SET and all consequent national plans and programmes will be aligned with SET-Plan.
14.2 Estonian energy related initiatives
14.2.1 State Development Programme on the Utilisation of Oil Shale 2007–2015 (Ministry of the Environment, 15.02.2007)
The programme’s objective is to ensure improvement of supply, production, utilisation efficiency, mining processes, and environmental friendliness of oil shale resources. The document covers existing oil shale resources’ conditions and areas of utilisation as well as states the objectives for further developments related to oil shale industry.
The programme supports the vision statement from “Estonian Development Strategy of Energy Related Technologies”, which claims that by the year 2013 Estonia will be one of the worlds leading developers of technologies for oil shale processing and low grade oil resource utilisation. The objectives and actions proposed in “State Development on the Utilisation of Oil Shale” reflect and complement the objectives and proposals from “Oil Shale Process Development Program” stated in this document.
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14.2.2 Energy Efficiency Target Programme 2007–2013 (Ministry of Economic Affairs and Communications, 15.02.2007)
The programme focuses on the following areas: improvement of the energy utilisation efficiency, environmental friendliness, and reasonable utilisation of environmental resources. The document covers existing conditions of energy economy, considering fuels’ utilisation and overall energy conservation, as well as states the objectives for the future, and proposes actions for the fulfilment of the objectives.
The programme supports the vision statement from “Estonian Development Strategy of Energy Related Technologies”, which claims that efficiency and energy saving are common objectives for all Estonian energy related technologies.
The objectives and actions proposed in “Energy Efficiency Target Program” reflect and complement the objectives and proposals from “Energy Efficiency Development Program” stated in this document.
14.2.3 The Programme on the Promotion of Biomasses’ and Bio Energy Utilisation 2007–2013 (Ministry of Agriculture, 25.01.2007)
The programme has two broad objectives: increase energy efficiency and develop renewable energy sources. By reaching these objectives it will be possible to decrease amount of waste, decrease dependency on imported energy, ensure stable energy market and support European technological development. The document covers existing biomasses’ and bio energy conditions and problems as well as proposes objectives and actions for further developments in this area.
The programme supports the vision statement from “Estonian Development Strategy of Energy Related Technologies”, which claims that by the year 2013 Estonia will have high competence level of utilising other sources of energy and maximise the use of local renewable energy sources in innovative, environmentally friendly, and effective manner.
The objectives and actions proposed in “The Programme on the Promotion of Biomasses’ and Bio Energy Utilisation” reflect and complement the objectives and proposals from “Renewable Sources Development Program” stated in this document. (http://www.agri.ee/index.php/16690)
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14.2.4 European Renewable Energy Programme
The main objective of the European Renewable Energy Programme is to make renewable energy consumption share 20% out of the total energy consumption in the EU. The action programme till 2009 proposes the ways to improve gas and power energy internal market’s processes, and the ways to improve energy markets’ interconnection.
The programme supports the vision statements from “Estonian Development Strategy of Energy Related Technologies”. The vision in this strategy is that by the year 2013 Estonia will have high competence level of utilising other sources of energy and maximise the use of local renewable energy sources in innovative, environment friendly, and effective manner. The second part of the vision statement is that Estonia will develop new technologies for emerging sources of energy.
The objectives proposed in “European Renewable Energy Program” reflect and complement the objectives and proposals from “Renewable Sources Development Program” and “Emerging Energy Sources Development Program” stated in this document. (http://www.valitsus.ee/?id=6478)
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14.2.5 Energy Related Projects Financed by Enterprise Estonia
Enterprise name Project name Year Amount TTÜ Põlevkivi Instituut USA–Estonia Oil shale research program 2004 2 540 000 kr Applied research on new production technology of oil shale Viru Keemia Grupp AS 2004 3 525 000 kr alkyl-resorsin epoxy resin Preliminary study on applied research of "Measurement Martem AS 2004 200 000 kr solutions of Power network parameters" Viljandi Metall AS Rounded tube enlargements' flame-smoke boiler 2004 1 440 000 kr
Teamprotection Baltic AS Cleopatra 2004 200 000 kr RAKETERM 2 – new environmentally friendly product, new Rake AS 2004 199 545 kr production, and installation technology RAKERTERM2 ja RAKEFIX – new environmentally friendly Rake AS 2004 4 772 800 kr product, new production, and installation technology Applied research 2 – methyl-resorsin production technology Viru Keemia Grupp AS 2004 1 860 000 kr research Work out of energy economical power station for public Tehnikateaduste OÜ transport and means for the overall decrease of energy 2005 200 000 kr consumption (preliminary research) Elrato AS Electrical panel's SEC series' development and testing. 2005 783 725 kr Development of innovative improvement of thermoprofiles' Loodesystem OÜ 2005 1 635 000 kr production line Research on industrial application of bio fuels' production by Nordic Biodiesel OÜ 2005 15 416 559 kr supercritical method. Renovation of electrical system of electrical railways' rolling Tallinna Tehnikaülikool 2005 150 000 kr stock (preliminary study) Production of additional chemicals from oil shale raw materials Kivirand OÜ 2005 2 945 051 kr for tyres' production Elcogen AS SOF-type fuel element work out based on new materials. 2005 4 942 163 kr Convective heat distribution intensifying device (preliminary Tallinna Tehnikaülikool 2006 133 088,17 kr study) Environmentally friendly selective mining combine technology Põlevkivi Kaevandamise AS 2006 199 943,00 kr development (preliminary study) Prospective usage of waste materials in oil shale industry for Tartu Ülikool 2006 4 745 291,20 kr phosphorus extraction from sewage water. Curonia Research OÜ Electrical Energy Intelligence Communicator (preliminary study) 2006 167 764,00 kr Research on energy conservators and opportunities of their Tallinna Tehnikaülikool 2006 200 000,00 kr utilisation in Estonia (preliminary study). Hydrogen production in cooperation with wind energy, Wind- Curonia Research OÜ 2006 199 260,00 kr Hydrogenmill (preliminary study) Qcell OÜ Research on bio fuels from CO2 (preliminary study) 2006 199 000,00 kr
Viljandi Metall AS Solid firewood STI40T boiler (preliminary study) 2006 110 274,00 kr
Tallinna Tehnikaülikool Side devices' transformators of electric transport 2006 1 325 000,00 kr Concept of passive building that does not require additional Tartu Ülikool 2006 188 981,00 kr heating (preliminary study) Carboshale OÜ ABEF 2006 149 247,06 kr
Table 7. Energy related projects financed by Enterprise Estonia.
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14.2.6 Estonian Participation to European 6 th Framework Energy Related Projects
Table 8. Estonian energy related projects financed by European 6 th framework. Proposal Requested Title Abstract Total Cost Legal Name Status Grant The objectives set in most EU countries with regard to the sustainable electricity production Biomass Cofiring in European in combination with the increase in the energy Reserved Tallinn University of 1 494 161 € 1 013 298 € Power Stations in 2020 demand in the coming decades will lead to the list Technology need of a high yearly increase in sustainable electricity production
Renewable energy systems are promoted in Europe, to reduce greenhouse gas emissions, Estonian Marine Reserved Directly Induced Wave Energy and increase the security of energy supplies. 2 470 000 € 2 086 000 € Institute, University list Wave energy offers a large and so far of Tartu untapped potential source of electric power.
New Energy Externalities SEI-Tallinn, Tallinn Successful 11 315 227 € 7 599 280 € Development for Sustainability Technical University With the increase in EU member countries to Tallinna 25, the challenge of reducing CO2 emissions Tehnikaülikooli CO2 capture and storage Europe-wide also increases. The Kyoto Geoloogia Instituut networking extension to new Retained 389 444 € 294 064 € Protocol obligates the EU to cut CO2 emissions (Institute of member states by 8% by 2008–2012 and much deeper Geology, Tallinn reductions will probably be required thereafter. Unive
The eight Central European Countries (CEC), Stockholm which are going to join the EU in spring 2004, Environment Large-scale integration of RES-E face their particular problems related to large- Institute Tallinn and cogeneration into energy Successful 230 456 € 230 456 € scale integration of renewable and co- Center, Estonian supplies in ACC generation electricity into energy supplies. Institute for These problems do not often meet. Sustainab
Reserved European Wind Atlas II 2 057 970 € 1 493 490 € University of Tartu list
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Proposal Requested Title Abstract Total Cost Legal Name Status Grant City of Tallinn, The objectives of VISIT 2008 are: improved Tallinn Technical urban air quality, create a sustainable, safe, University, AS MRP VISIT 2008 – Vision for an and flexible traffic system that improves the Linna Liinid, Tallinn intelligent sustainable intermodal quality of life in Malmo" and Tallinn. It will cut Successful 27 532 953 € 11 296 849 € Tram and city traffic 2008 the current trend of increased use and Trolleybus ownership of cars, promote sustainable Company, Tallinn development. Bus Company
Advanced cities wants to mitigate their greenhouse gas emissions further together with Sustainable Energy Systems in local stakeholders and researchers and show Vastseliina Rural Successful 37 461 739 € 14 913 322 € Advanced Cities how sustainable energy systems can be Municipality achieved through incorporating innovative technologies and systems..
The European PV market is developing rapidly, A science base on photovoltaics with new products and services, new actors performance for increased market Tallinn University of and technologies emerging Successful 14 934 091 € 8 910 992 € transparency and customer Technology constantly while overall business grows by over confidence 30% a year.
The objective of the project is to gain experience and to build up a track record of Hogsara island demonstration small wind farm with multi megawatt wind Successful 5 599 000 € 1 996 500 € Roheline Ring OÜ project turbines built on island, to demonstrate high availability and to verify the low cost foundation.
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Proposal Requested Title Abstract Total Cost Legal Name Status Grant To develop the market for solid biofuels within the EU standards are needed. This is true for Pre-normative research on solid the definition of key properties Reserved Tallinn University of biofuels for improved European 4 519 058 € 2 727 346 € describing solid biofuels as well as test list Technology standards procedures to analyse if these properties are met. With the increase in EU member countries to 25 comes an increase in the challenge of Assessing European Capacity for Institute of Geology reducing CO2 emissions Europe wide. Geological Storage of Carbon Successful 5 042 000 € 2 638 000 € at Tallinn University Especially for Kyoto Protocol Annex 1 Dioxide of Technology countries, whose challenge is to cut CO2 emissions by 8% by 2008–2012. Biomass co-firing represents, compared to other renewable sources, a technically feasible option with the potential of Estonian Integrated European Network for contributing to the EU energy supply Successful 959 149 € 959 149 € Agricultural Biomass Co-firing meanwhile ensuring sustainable development. University Co-firing of biomass with coal offers several advantages. Chemical looping combustion (CLC) is a new, indirect combustion process with inherent Chemical Looping Combustion separation of CO2. The CLC Tallinn University of Successful 2 335 000 € 1 883 750 € CO2-Ready Gas Power technology uses metal oxide particles for Technology oxygen transfer from combustion air to fuel, thus CO2 is obtained in a separate stream.
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Proposal Requested Title Abstract Total Cost Legal Name Status Grant DESIRE will disseminate practices which will Dissemination Strategy on integrate fluctuating renewable electricity Electricity Balancing for large supplies such as wind power into electricity Tallinn Technical Successful 2 320 034 € 1 665 049 € Scale Integration of Renewable systems using combined heat and power. This University Energy will allow an increase in pan-European trade in electricity.
Smart-Eco creates a community for eco- buildings by bringing together experienced Sustainable Smart Eco-Buildings organizations that span the full range of Tallinn University of Retained 683 421 € 500 146 € in the EU stakeholder views. These include universities, Technology R&D organisations, companies that supply and use innovative technologies.
The Municipality of Stenloese has decided to strengthen the energy requirements for a new Cost-effective Low-energy settlement to be erected in the municipality. In Valga Town Retained 9 782 285 € 4 082 534 € Advanced Sustainable So1utions this new settlement 650 dwellings will be Government constructed in the years 2007–2008 to a low- energy standard. The Municipality of Stenloese has decided to strengthen the energy requirements for a new Cost-effective Low-energy settlement to be erected in the municipality. In Retained 9 782 285 € 4 082 534 € IB Aksiaal OÜ Advanced Sustainable So1utions this new settlement 650 dwellings will be constructed in the years 2007–2008 to a low- energy standard.
The EU has put considerable effort in creating Production of a movie to a favourable legal framework for renewables accelerate the uptake of innovative (RES). However, RES heating and cooling has Tallinn University of Retained 308 480 € 308 480 € bioenergy technologies for heating so far received less political attention. This Technology and cooling market sector is heavily dominated by biomass (>98% share)
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15 PRESENT RESOURCES AND FUNDING
Main development resources in energy related technologies in Estonia are located in Estonian University of Life Sciences, Tallinn University of Technology, University of Tartu, and three centres of excellence:
• European and National Centre of Excellence in PV Materials and Devices. • Chemical and Material Science Centre of Excellence of Tallinn University of Technology. • Oil Shale and Power Engineering Centre of Excellence of Tallinn University of Technology.
The challenge is to map and identify the development resources in enterprises. Almost the only way is to list the persons who have participated to the publicly funded projects.
Totally Estonia has in the energy related technologies enough resources even for large scale technology programmes. International cooperation in EU’s 7 th framework and with individual countries will increase the resource “pool” and improve the technology transfer and transfer of best practices. Competence definition for individual persons or research groups must be done while project applications are evaluated.
The following tables 9, 11, and 13 give the names of the faculties where energy related technologies are relevant, the names for key people, the main research areas, and tables 10, 12, and 14 show the present funding of the faculties.
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Table 9.Energy related resources in Estonian University of Life Sciences.
Estonian University of Life Sciences
Deans/directors of Faculty Department Personnel Main research areas departments Dean - Illar Lemetti
Associate Professor - D.Sc Sirje Vabrit, PhD Ao Pae; Lecturer, Director - D.Sc Kadri Horticulture researcher - PhD Ulvi Moor, lecturer - MSc Priit Põldma; Researcher - Energy Optimisation in European Greenhouses. Karp MSc. Agnes Merivee, MSc - Marge Starast; Assistant - MSc. Ele Vool
Senior Researchers - PhD Kalevi Kull, PhD Malle Leht,PhD Marek Solutions for the safe application of wastewater Sammul, PhD Katrin Heinsoo, PhD Tatjana Oja, DSc Vello Jaaska; and sludge for high efficient biomass production Botany Director - PhD Tiiu Kull Researchers - PhD Kadri Tali, PhD Merit Otsus, PhD Maret Saar, PhD in Short-Rotation-Plantations, watering systems Ülle Kukk, MSc Thea Kull; Senior Lecturer - Toomas Kukk; Lecturer - of energy verdures watered by waste waters. Mare Leis; Senior Laborant - MSc Bert Holm, Katrin Jürgens
Phytopathology Director - prof. Valdo Environmental Protection Kuusemets Institute of Landscape Architecture Agricultural and Landscape Management and Nature
Environmental Conservation Sciences Professors Emeritus - Dr. Raimo Kõlli, cand Paul Kuldkepp, dr. Loit Influence of collapses of underground oil shale Reintam, Dr. Endel Kitse; Dotsent - Dr. Enn Leedu; lecturer - MSc Endla Director - prof. cand mines on the properties of soil cover; Soil Science and Agrochemistry Reintam MSc - Alar Astover, MSc - Avo Toomsoo; Researchers - MSc Hugo Roostalu recultivation of exhausted quarries; Tiiina Köster, MSc Triin Teesalu; Senior Laborant - Tiina Laidvee, Kaire pedotechnology and use of humus soil. Rannik
Mycology Grassland Science Plant Physiology Plant Protection Director - prof. cand Senior Researcher - cand Jaan Kuht; dotsent - Dr. Enn Lauringson; Field Crop Husbandry Factors influencing growth of rape biomasses. Juhan Jõudu professor - Dr. Ervi Lauk Zoology
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Estonian University of Life Sciences Deans/directors of Faculty Department Personnel Main research areas departments Director - Ants Soon Applied Physics Mathematics
Profitability of the biogas production, efficiency Professors - Kuno Jürgenson; Professors Emeritus - Jaan Lepa, Matti of energy utilisation, energetically self-sufficient Liiske; Dotsents - Tõnis Peets,Eugen Kokin, Veli Palge; Lecturer - Toivo Southern Estonia, energy audit, renewable Leola, Külli Hovi, Vahur Põder; Doctorant - Sven Peets; Senior Institute of Energy utilisation Director - Andres Annuk energy sources: biomasses, wind energy Laborant- Toivo Kreutzberg; Laborants- Aino Mikksaar, Lea Voltein; Technology utilisation, solar energy utilisation, Young specialists -Argo Normak, Marek Muiste, Erki Jõgi, Madis implemetation of new energy technologies in Pennar, Mart Hovi local governments and enterprises.
Agricultural and production
technology
Farming technology and ergonomics
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Estonian University of Life Sciences
Deans/directors of Faculty Department Personnel Main research areas departments Director - Dr Sc Paavo Director of Studies - MSc Toomas Timmusk, Kaimre
Senior Researchers - Dr Jaan Klõsheiko, cand Aljona Lukjanova, Dr. Growth of trees in oil shale open pit's dump, Director - cand Malle Ecophysiology Katri Ots, cand Henn Pärn; Researcher - Tatjana Kuznetsova; wood waste utilisation for energy production, Mandre Engineers - Reet Korsjukov, Kersti Poom; Laborant - Mari Tilk formation of biomasses.
Geomatics Rural Building Forest Biology Silviculture Forest Management Institute of Forestry and Rural Potential of the forest waste used as fuels in Engineering different forest fields, oil hale, and biofuels in Estonian energy sector, morphological Dotsent - cand Jaak Pikk; Lecturers - MSc Regino Kask, MSc Vahur Director - prof. cand adaptations of fine roots in Scots pine, silver Forest Industry Kurvits, MSc Teet Nurk, MSc Andres Uus; Senior Laborant - Pille Peeter Muiste birch, and black alder stands in recultivated oil Peterson; Laborant - Kalle Moor; Engineer - Risto Mitt shale mining and semi-coke areas, unused energy verdures in power lines, bio fuels, dynamics of wood fuels.
Professors emeritus- cand Koit Alekand, Dr. Jüri Kuum, Dr. Aleksander Maastik; Lecturers - MSc Valev-Jaan Reidolf, MSc Mihkel Gross, MSc Director - MSc Toomas Waste to energy, natural pond's utilisation as Water Management Mait Kriipsalu, MSc Priit Tamm, Helmut Lillipuu, Urmas Uri; Dotsent - Timmusk renewable energy source and vegetation filter. Dr. Toomas Tamm; Senior Laborants - Heiti Haldre, Tõnu Salu, Kersti Teeäär.
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Estonian University of Life Sciences Deans/directors of Faculty Department Personnel Main research areas departments
Director - Rando Värnik
Professor Emeritus- Viktor Jullinen, Associate Professors - Dr. Enn Plaan, PhD Uno Silberg; PhD Fai Simo; Main Specialist - PhD Mati Department of Economics and Director - MSc Ülle Economical and social aspects in production Sepp; Lecturers - MSc Ülle Kerner, MSc Katri Lahesoo, MSc Priit Social Sciences Roosmaa and utilisation of biofuels. Institute of Pajuste, MSc Kaire Uiboleht, Raul Omel; Specialists- Kaire Vahejõe, Economics Ülle Kulp. Senior Specialist - Jaana Orin and Social Department of Accounting and Sciences Finances Department of Business Informatics
and Econometrics
Department of Rural Management,
Co-operation and Rural Sociology
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Table 10. Funding of Estonian University of Life Sciences.
Estonian University of Life Sciences Target financing distribution by institutes Financing Institute’s share of EULS total financing (%) 2005 (Thousands of EEK) Institute of Agricultural and Environmental Sciences 1 3623,0 65,9 Institute of Technology Institute of Forestry and Rural Engineering 2 880,0 13,9 Institute of Economics and Social Sciences Other institutes 4 182,0 20,2 In total 16 503,0 100,0 Basic financing distribution by institutes, Financing Institute’s share of EULS total financing (%) 2005 (Thousands of EEK) Institute of Agricultural and Environmental Sciences 2 093,0 39,3 Institute of Technology Institute of Forestry and Rural Engineering 1 162,0 21,8 Institute of Economics and Social Sciences Other institutes 2 075,0 38,9 In total 5 330,0 100,0 ETF grants' distribution by institutes, 2005 Institute’s share of EULS ETF grants' distribution (Thousands of EEK) total ETF grants (%) Institute of Agricultural and Environmental Sciences 4 253,9 47,1 Institute of Technology 47,3 0,5 Institute of Forestry and Rural Engineering 1 724,5 19,1 Institute of Economics and Social Sciences 11,7 0,1 Other institutes 2 989,4 33,1 In total 9 026,8 100,0 International funding distribution by Institute’s share of EULS total International funding institutes, 2005 (Thousands of EEK) international funding (%) Institute of Agricultural and Environmental Sciences 3 892,0 58,1 Institute of Technology Institute of Forestry and Rural Engineering 1 183,0 17,6 Institute of Economics and Social Sciences 22,0 0,3 Other institutes 1 607,0 24,0 In total 6 704,0 100,0
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Table 11. Energy related resources in Tallinn University of Technology.
Tallinn University of Technology Publications Deans/directors Faculty Department Heads of chairs Personnel Main research areas by faculty, of departments 2005 Dean - Professor
Tõnu Lehtla Engineers - Raul Aarpuu, Zoja Raud; Researchers - Vitali Chair of Robot Technology Energy saving electrical drives; Power Boiko, Tanel Jalakas, Taavi Möller, Raul Naadel, Indrek Electrical Drives Director - Doctor - Tõnu Lehtla; Chair of electronic converters; Diagnostics of Roasto; Disainer - Ann Gornischeff; Dotsent - Raik Jansikene, and Power of Engineering, Electrical Drives and electrical drives and converters; Rain Lahtmets, Elmo Pettai, Avo Reinap, Raivo Teemets; Electronics Juhan Laugis Power Supply - prof. Juhan Electrical transport systems; Industry Senior Researchers - Madis Lehtla, Endel Risthein (professor Laugis automation. emeritus), Argo Rosin, Dmitri Vinnikov; Lecturer - Liisa Liivik. Associate Professor Emeritus - Tiit Metusala; Associate Professor - Mati Valdma; Professor - Mati Meldorf; Associate Professor - Peeter Raesaar; Associate Professor Emeritus - Modelling, analysis and optimal control Chair of High Voltage Eeli Tiigimägi; Associate Professor - Ülo Treufeldt; Associate of the operation of power plants, Director - Engineering - Rein Professor - Juhan Valtin; Senior Research Scientist - Matti electrical networks and power systems; Electrical Power Professor Heiki Oidram; Power Systems Keel; Research Scientist - Jelena Shuvalova; Researcher - models, planning and analysis of Engineering Tammoja Cybernetics - Heiki Reeli Kuhi-Thalfeld; Teaching Assistant - Jako Kilter; Senior energy system development; electrical Power Tammoja Engineer - Mati Kodumets; Associate Professor - Rein insulation, and insulation breakdown 152 Engineering Oidram; Researcher - Jaanus Ojangu; Teaching Assistant - under different conditions. Ivo Palu; Engineer - Aleksander Annus; Lab Assistant - Paul Taklaja Professor - Jaan Järvik; lecturer - Aleksander Kilk; Researcher Fundamentals - Victor Boglov; Researcher - Peeter Kroos; Researcher - Eino Director - Chair of Eletical Machines Problems of energy saving, reactive of Electrical Sepping; Researcher - Thomas Vinnal; Lecturer - Heljut Associate - Jaan Järvik; Chair of power compensation, network friendly Engineering and Kalda; Lecturer - Andrei Shkvorov; Assistant - Tarmo Professor Kuno Fundamentals of Electrical power supply, and special types of Electrical Rosman; Engineer - Aino Moor; Engineer - Heigo Mõlder; Janson Engineering - Heljut Kalda electrical machines. Machines Researcher -Tiiu Sakkos; Researcher - Toomas Vinnal; Researcher - Jevgeni Shklovski Senior Researcher - Alo Adamson; Associate Professor - Chair of Aplied Geology - Katrin Erg; Teaching assistant - Veiko Karu; Dotsent - Jüri- Director - Oil shale mining, hard limestone Katrin Erg; Chair of Mining Rivaldo Pastarus; Researcher - Sergei Sabanov; Associate Mining Professor Ingo mining; rehabilitation of mined out of Earth Resources - Ingo professor - Ülo Sõstra; Teaching Assistant - Aire Västrik; Valgma areas. Valgma Specialist - Reili Pärnasalu, Vivika Väizene; Professor - Ingo Valgma
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Tallinn University of Technology Publications Deans/directors Faculty Department Heads of chairs Personnel Main research areas by faculty, of departments 2005 Dean - Professor
Andres Õpik Chemical
Engineering Polymeric
Materials Food Processing Senior Researchers - Mare Altosaar, Jaan Hiie, Helle Kirss, Malle Krunks, Jüri Krustok, Ljudmila Kudrjavtseva, Anne Chair of Physical Menert, Jaan Raudoja, Enn Siimer, Vello Valdna, Tiit Varema, Studies related to PV materials, Director - Enn Chemistry - Andres Õpik; Material Science Engineers - Tatjana Dedova, Andri Jagomägi, Liina Polycristal semi-conductors' chemistry Mellikov Chair of Applied Physics - Kaupmees, Ilona Oja; Researchers - Marit Kauk, Olga and technology Jüri Krustok Chemical Kijatkina, Julia Kois, Mati Kuus, Helen Rebane; Senior and engineers - Riina Mellikov, Toomas Piibe (total 23 persons) 190 Materials Director of Oil Shale Chemical Engineers - Irina Bajeva, Tatjana Bassova, Mihhail Technology Scientific Laboratory - Bitjukov, Mihhail Kaev, Larissa Kruglenkova, Ljudmila The properties of oil shale, thermal Hans Luik; Fuels Research Letsmann; Senior Researchers - Ille Johanes, Ljudmila processing of oil shale and improvement Oil Shale Director - Jüri and Experiments Kekisheva, Hans Luik, Rein Muoni, Hella Riisalu, Hindrek of equipment, new fuels development, Research Soone Laboratory - Hella Riisalu; Tamvelius; Laborants - Klavdia Lantova, Valentina liquid and solid fuels' chemistry and Chair of Fuels Chemistry Poljantsihhina, Tatjana Rozikova, Valentina Voltsikova; technology, oil shale economics. and Technology - Jüri Researchers - Kristjan Kruusement, Lea Luik, Laine Tiikma; Soone (total 38 persons) Centre for Materials Research Laborants - Helle Ehala; Chemical Engineer - Marve Einard; Laboratory of Director of Senior Researcher - Rein Kuusik, Tiit Kaljuvee, Juha Kallas, Oil shale ash and sulfur refinement for oil Inorganic Laboratory - Rein Kaia Tõnsuaadu, Andres Trikkel, Mihkel Veiderma; Engineer - shale boilers Materials Kuusik Irina Rudjak, Merli Toom, Karin Viipsi; Researcher - Mai Uibu
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Tallinn University of Technology Publications Deans/directors Faculty Department Heads of chairs Personnel Main research areas by faculty, of departments 2005 Dean - Priit Kulu Laboratory of Mechanical
Testing and Metrology Machinery Materials
Engineering Mechanical Mechatronics Engineering Head of Chair of Engineers - Raaja Aluvere, Tatjana Bojarinova, Jüri Eivak, 179 Oil shale related research, boilers, oil Industrial Thermal Paul Juurma, Alar Konist, Agu Ots, Kristjan Plamus, Rein shale ash, fuels' properties, biomasses, Technology - Karl Rootamm, Vello Selg, Ants Veski, Illar Viilmann; Senior wastes, fuels' co-burning and Director - Ingermann; Head of Researchers - Hendrik Arro, Ivan Klevtsov, Toomas Lausmaa, Thermal gasification, heat and power co- Professor Aadu Chair of Thermal Tõnu Pihu, Arvi Prikk, Harri Tallermo, Villu Vares; Laborants - Engineering production, heat physical processes in Paist Engineering - Aadu Kaja Ülenõmm, Evi Einloo, Researchers - Andrei Dedov, Livia burning machinery, theoretical Paist; Head of Chair of Kask, Ülo Kask, Teet Parve, Indrek Pertman, Inge Roos, fundamentals of intesifying exchange of Materials Engineering - Sulev Soosaar; Lecturers - Aleksandr Hlebnikov, Heli Lootus; heating masses Andres Siirde Dotsent - Rein Kruus, Arvi Poobus; (total 43 persons) Dean - Professor
Roode Liias Structural
Design Head of Chair of Construction Technologies of complex use and Economics and Dotsents - Ljudmila Drõkina, Uno Juurvee, Toomas Laur, Rein utilisation of oil shale ash in the Management - Roode Plats, Olev Müürsepp; Lecturers - Valle Erlach, Kuulo Mõisnik, production of building materials, Building Director - Irene Liias; Head of Chair of Tiina Nuuter, Erki Soekov, Tanel Tuiskl; Researchers - Tiina Building technology and building Production Lill Construction Hain, Margit Rosenberg; Engineers - Maksin Koroljov, Maria materials, Construction economics and Technology - Irene Lill; Tsibanova; Professors - Lembi-Merike Raado, Jüri Sutt, management, Energy saving Head of Chair of Väärdi Reiman (total 28 persons) renovation of buildings and facilities, Civil Engineering Construction Materials Housing management 132 - Lembi-Merike Raado Head of chair of Fundamentals of Dotsent - Valdu Suurkask, Jüri Säärikõnno, Jaan Karu, Arvo Environmental Iital; Professor - Heino Mölder, Kaidor Hääl, Teet-Andrus Kõiv; Director - Protection - Enn Loigu; Environmental Researchers - Viktoria Blonskaja, Mare Pärnapuu, Ülle Leisk, Professor Enn Head of Chair of Heat Environmental engineering Engineering Kati Roosalu; Engineers - Olev Sokk, Siret Bankier, Virve Pall, Loigu and Ventilation - Teet- Katrin Kuslap; Lecturers - Tarmo Vaalu, Peeter Parre, Vootele Andrus Kõiv; Chair of Hansen, Alvina Reihan (total 27 persons) Water Technology - Valdu Suurkask Mechanics Transportation
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Table 12. Funding of Tallinn University of Technology. Tallinn University of Technology Target financing distribution by faculties Financing Faculty’s share of TUT total financing (%) 2005 (Thousands of EEK) Power Engineering 1 224,0 2,0 Chemical and Materials Technology 9 770,0 17,7 Mechanical Engineering 6 181,0 11,2 Civil Engineering 1 528,0 2,8 Other Faculties 36 795,5 66,3 In total 55 498,5 100,0% Basic financing distribution by faculties, Financing Faculty’s share of TUT total financing (%) 2005 (Thousands of EEK) Power Engineering 180,0 3,4 Chemical and Materials Technology 1 315,0 25,2 Mechanical Engineering 625,0 12,0 Civil Engineering 187,5 3,6 Other Faculties 2 911,4 55,8 In total 5 218,9 100,0 ETF grants' distribution by faculties, 2005 ETF grants' distribution Faculty’s share of TUT total ETF grants (%) (Thousands of EEK) Power Engineering 1 012,0 5,8 Chemical and Materials Technology 2 743,0 15,8 Mechanical Engineering 2 087,0 12 Civil Engineering 682,0 3,9 Other Faculties 6 737,0 38,8 Institutes 4 120,0 23,7 In total 17 381,0 100,0 International funding distribution by Faculty’s share of TUT total international funding (%) faculties, 2005 Power Engineering 3,3 Chemical and Materials Technology 12,4 Mechanical Engineering 15,7 Civil Engineering 10,4 Other Faculties 58,2 In total 100,0
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Table 13. Energy related resources in University of Tartu.
University of Tartu Publications Deans/directors of Faculty Department Heads of chairs Personnel Main research areas by faculty, departments 2005 Dean - Tõnu Meidla R&D Dean, PhD - Leho Ainsaar; Biology and Geography Effects of global climate change Director - Avo on the photosynthetic apparatus, Roosma; Director of growth and water regime of Associate Professor, PhD - Arne Sellin; Researcher, cand. biol. - Institute of Botany and Doctoral School of Head of Chair of plants, the carbon cycle of forest Anu Sõber; Researchers, PhD - Ebe Merilo, Priit Kupper, Robert Ecology (Chair of Ecology and Ecophysiology - Anu ecosystems, relationships Szava-Kovats; Technicians, MSc - Lea Hallik, Pille Mänd, Olaf Ecophysiology) Environmental Sõber between environmental Biology Räim, Ingmar Tulva (total - 11 persons). and Science - PhD, Edgar conditions, and the spatial 466 Geography Karofeld. heterogeneity of plant communities. Geography Institute Geology Institute Molekular- and cell
biology institute Zoology and
hydrobiology institute
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University of Tartu Publications Deans/directors of Faculty Department Heads of chairs Personnel Main research areas by faculty, departments 2005 Deans - Säde Viirlaid, Kalev Tarkpea, Peeter Tenjes Physics and Chemistry Institute of Experimental
Physics and Technology Development Mechanisms of Professor PhD - Tiit Nilson; Dotsent - Hanno Ohvril; Researchers atmospheric aerosols, the impact - PhD Marko Vana, PhD - Ülle Kikas, PhD Anne Männik - PhD - of electrically charged clusters on Aare Luts, PhD Urmas Hõrrak, cand Tiia-Ene Parts, PhD Marko the dynamics of the size Institute of Director - Rein Rõõm Kaasik, cand. Jaan Salm; Lecturers - Piia Post; Senior spectrum on nanometer Environmental Physics Researchers - Aadu Mirme, Madis Noppel, Eduard Tamm, particles, and with the Hannes Tammet; Senior Engineers - Aleksander Savihhin; Senior assessment of the effect of these Laborant - Aleksandra Linnas; (total 25 persons) processes on the formation of climate and weather. Institute of Theoretical
Physics Institute of Chemical
Physics Physics and Professor cand. Väino Sammelselg; Dotsent - cand Lembi Tamm, 169 cand. Heldur Keis, PhD Kaido Taimeveski; Lecturers - cand Erika Chemistry Head of Chair of Jüriado, cand Juha Erlich, MSc Karin Hellat, Senior Researchers Inorganic Chemistry - cand Jüri Tamm, PhD Alar Jänes, cand Mart Väärtnõu, PhD - Väino Sammelselg; Processes taking place on Toonika Rinken, Researchers - cand Ants Alumaa, cand Allan Head of Chair of modified border surfaces and on Hallik, MSc Priit Möller, MSc - Jaak Nerut, PhD - Silvar Kallip, Institute of Physical Director - cand. Enn Physical Chemistry - conjungated phases, their PhD Jaanus Kruusma, PhD Karmen Lust, PhD Gunnar Nurk, Chemistry Lust Enn Lust; Head of implementation in new types of PhD Thomas Thomberg, MSc Indrek Kivi, MSc Rutha Jäger, MSc chair of Colloids and electrical power generators and Ave Sarapuu, MSc Nadezhda Aleksejeva, PhD Timo Kikas, PhD Environmental in environmental studies. Erik Mölder, PhD Taavo Tenno, MSc Heili Kasuk; Senior Chemistry - Kaido Laborants - Malle Moldau, Piret Tüür; LAborants - Heisi kurig, Tammeveski Kersti Vaarmets, Priit Nigu, Liis Siinor, Joosep Poom, Kerli Tõnurist, Anne Paaver. (total 57 persons) Institute of Organic and
Bioorganic Chemistry Gammaspectrometric and radiometric analysis methods for Director - cand Jaak Specialist - cand Hilda Teral; Engineer - Helbe Paabut; natural and artificial radionuclide Materials Science Kikas Preparaator - Vilma Roose analysis and the assessment of radiation doses in the Estonian natural environment.
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University of Tartu Publications Deans/directors of Faculty Department Heads of chairs Personnel Main research areas by faculty, departments 2005 General: Vice-director - PhD Erik Puura, energy efficiency laboratory director - PhD Tõnu Mauring, Materials Science Senior Researcher - PhD Tarmo Tamm, Technology Specialists - Kent Langel, Olev Kahre, Malle Viik; Laborants - Jelena Kiprovskaja, Clean-up technologies for Eve Proovel; Engineers - Aleksei Mashirin (total 22). polluted air, soil, water; waste Institute of Director - cand Mart Environmental Technology - Senior Researchers - Allan Nurk, management; environmental 17 Technology Ustav PhD Hennes Kollist, dr. Heino Moldau ; Researchers - MSc Ene monitoring technologies; Talpsep, MSc Indrek Suitso, MSc Tiina Michelson, MSc Eerik monitoring of global changes. Jõgi, PhD - Priit Pechter; Specialists - Kristjan Karabelnik, Kaspar Nurk, Elar Põldvere, Alar Noorvee, Hilja Lopp, Mari-Liis Ots,Margit Oja; LAborants - Maria Gusina (total 18 persons)
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Table 14. Funding of University of Tartu.
University of Tartu Target financing distribution by faculties Financing Faculty’s share of UT total financing (%) 2005 (Thousands of EEK) Biology and Geography 26 474,0 26,1 Physics and Chemistry 13 335,0 13,1 Institute of Technology 4 802,0 4,7 Other faculties and institutes 56 839,0 56,0 In total 101 450,0 100,0 Basic financing distribution by faculties, Financing Faculty’s share of UT total financing (%) 2005 (Thousands of EEK) Biology and Geography 3 607,0 11,5 Physics and Chemistry 216,0 0,7 Institute of Technology 7 443,0 23,8 Other faculties and institutes 20 044,0 64,0 In total 31 310,0 100,0 ETF grants' distribution by faculties, 2005 ETF grants' distribution Faculty’s share of UT total ETF grants (%) (Thousands of EEK) Biology and Geography 8 088,0 21,6 Physics and Chemistry 4 214,0 11,3 Institute of Technology 1 117,0 3,0 Other faculties and institutes 23 990,0 64,1 In total 37 409,0 100,0 International funding distribution by International funding Faculty’s share of UT total international funding (%) faculties, 2005 (Thousands of EEK) Biology and Geography 13 348,0 22,2 Physics and Chemistry 7 115,0 11,8 Institute of Technology 3 063,0 5,1 Other faculties and institutes 36 625,0 60,9 In total 60 151,0 100,0
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16 RESULTS WITH TECHNOLOGY PROGRAMMES
Instead of having many independent individual development projects which are difficult to coordinate and put in priority the recommended approach is to have bigger technology programmes. Technology programmes are an efficient way to promote national development goals through technology development. This means also that the present activities in different ministries should be managed and guided together even if the funding may come from different sources
Essential characteristics of technology programme approach are:
• It enables the alignment of very diverse development initiatives to support a nationally important goal. • It enables use of qualified resources to shape the target setting and to dynamically adjust it as the environment changes and experience is cumulating. • It provides a broad selection of development promotion and direction tools.
Figure 14 . Structure of a technology programme.
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16.1 Technology Programme Tools – General
General structure and main types of activities for technology programmes:
• Funding of R&D projects: – Research projects applied by research institutes – enterprises participating – R&D projects applied by enterprises – universities as subcontractors – Percentage of funding to be defined case by case – R&D Funding can be given as grants or as risk loans – no payback if the development fails. • Communication – Creating and distributing information, e.g., Improving public image of the industry Informing the public about development projects Presenting the strategy of the programme to enterprises and research in order to get qualified and targeted applications and to direct the R&D efforts in early phase. • Seminars – Networking – Learning and processing the knowledge – Communicating the targets and results of the programme – Activating the branch for participation and applications. • Forecasting and analysing the development of the branch or technologies. • Mechanisms stimulating cooperation – Cooperation as prerequisite for funding. • Steering group work – Commitment of core team to the objectives of the programme – Envisioning the development and redirecting the programme as necessary. • Internationalisation. – Linking the work to programmes done in other countries – Channelling international funding. • Programme manager services. • Evaluation of the progress, results, and impact – During the programme – After the programme – Redirecting as necessary.
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16.2 International Benchmarking: Finnish Technology Programmes
Finnish Funding Agency for Technology and Innovation (Tekes) uses technology programmes to allocate its funding, networking and expert services to areas that are important for business and society. Tekes launches technology programmes in areas of application and technology that are in line with the policies outlined in Tekes’ strategy. Tekes allocates approximately half the funding granted to companies, universities, and research institutes through technology programmes (ca 200 M€).
Tekes technology programmes have been contributing to changes in the Finnish innovation environment for twenty years.
History of Technology Programme Activity of Tekes
Technology programme activity began in Finland when Tekes was founded in 1983. The technology programme activity was proposed by the Technology Committee that finished its work in 1980. The Committee proposed two technology programme seeds, related to electronics manufacturing technology and software technology as new type of cooperation initiative. The list of the technology programmes was extended in early 1980s. The first generation technology programmes were research oriented, although they included also product development projects of enterprises as associated projects.
At the turn of the 90s a committee working for the development of the technology programmes evaluated technology programme activities and made proposals for new technology programme areas. The committee recommended linking the technology programmes closer to industry and enterprise group specific target settings and strengthening the international interaction. Based on the proposals of the committee, industry driven technology programmes were launched on those 11 fields that the committee had defined to be important for the competitiveness of Finnish industry.
In 1991 almost half of all technology programme funding by Tekes was directed to industry branch and enterprise group specific technology programmes. The target was to increase the level of challenge in the own long term research and development projects of the enterprises and to make them utilize the research services of the universities. Branch specific technology programmes were launched together with industry associations. Regional technology programmes were a new type of technology programmes, with the target of transferring existing technologies to the use of the enterprises. Increased weight of industry driven model improved the capability of technology programmes to react fast to the changes in the economic environment.
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During the last 10 years the scope and diversity of technology programme activity have been increasing. International aspects and market drive have been gaining ground. The foundations of the technology programmes include increasingly customer orientation, processes and policies, business aspects, and issues crossing borders between technologies.
The purpose of the technology programme process is to create nationally significant innovation action lines that are based on cooperation between large groups of actors and deal with issues that are strategically important to Finland. These activities consist of national technology programmes, strategic centres for science, technology, and innovation, and international cooperation initiatives.
National technology programmes consist of research and development projects and other activities of enterprises and research organisations that promote issues including internationalisation, networking, transfer of results especially to SMEs, regional impact and development of business competence.
During the evolution of programme activity of Tekes the programmes have been subject to following developments:
• The size of the technology programmes has grown and the scope has expanded, the number of technology programmes has decreased. • International focus has been strengthened. • The emphasis has shifted from technology drive towards market drive. • Programmes addressing multiple technologies and crossing borderlines have increased – a shift from a technical problem solving towards more complex and holistic technology programme entities has taken place. • Increasing attention has been given to added value of the technology programmes and utilisation of the results. • The nature of technology programmes has become more strategic – steering influence of Tekes through technology programme activity has increased. • Technology programme processes have become more formalised.
There are some 1,800 instances of corporate participation in the technology programmes every year and about 500 instances of participation by research units. Tekes technology programme funding has increased. Of all financing by Tekes to enterprises, universities and research institutes, ca. 40% is directed through technology programmes, and Tekes plans to increase the share further in the coming years
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Different Types of Technology Programmes
During the history of technology programme activity, there has been a great diversity of different technology programmes. Examples:
• Government official technology programmes of energy branch (based on the needs of national energy supply and politics). • Broad umbrella-type ICT technology programmes (based on fast technological change). • Food industry technology programmes driven by EU directives. • Project management oriented technology programmes for forest and construction industries. • Research oriented technology programmes of chemical industry. • Complex cross-disciplinary business technology programmes. • Joint technology programmes for alignment of incoherent policies and conventions.
At present, the technology programmes are classified in four groups according to the table 15, based on targets, challenges and main focus groups. The classification of technology programmes to these types is not strict. Technology programmes include some features of all types.
Main cooperation Main challenge of Technology Problem to be partner for the the technology programme type solved enterprises programme Identification and Research based How to create new concretisation of the technology business from a new Research institutions possibilities provided programmes technology? by a new technology How to commercially Understanding the Market based utilise the Pioneers and user needs and technology opportunities of new advanced users market changes as programmes markets? drivers of innovation identifying the Leading enterprises of Industry and cluster How to renew a changes and utilising the branch and renewal technology mature industry or new technology; enterprises offering programmes cluster? renewal of value new innovations networks Understanding the How to solve societal Sector authorities Social impact needs of society, problems by means of responsible of the technology identifying and technology and solution of social programmes utilising innovation innovation? problems opportunities
Table 15.Technology programme classification.
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Structure and Functions of a Technology Programme
While the size and scope of technology programmes have been increasing, Tekes has paid more attention to the management of the technology programmes. Technology programme process has been formalised – planning and implementation are carried out in defined phases.
The ideas about new technology programmes are based on initiatives of Tekes customers and target settings defined in the strategy of Tekes. Tekes plans technology programmes in open seminars and in cooperation with industry associations, enterprises, universities, research institutes and public administration. Tekes board decides on the launching of a technology programme. The planning does not necessarily lead to the launching of the programme. Planning of a technology programme has typically taken one year and during that time the aim has been to formulate by expert interviews and various industry and market studies the shared goals for different parties in the industry concerned. Often during this phase a planning group is collected, which then later will form the core of the steering group of the technology programme. The planning group has defined the target setting, scope, the criteria for measurement of the results, defined the means to be used, and evaluated the needed resources.
Strategy work in the technology programmes has mainly been definition of targets and focus areas of the technology programme during the planning phase. Technology programme management and strategy work during the implementation phase have been very different in different technology programmes, and mainly taken shape depending the backgrounds and know- how of the persons involved or according to the established practices of the industry in question.
A technology programme to be launched must support the objectives of Tekes and address Tekes focus areas defined in the strategy. The technology programme must bring added value compared to funding of individual projects: activities in technology programme form must have a clearly defined need and target setting of the technology programme must require technology programme services and cooperation between projects.
Objectives of Tekes are:
• R&D activities strengthen the knowledge base. • Innovative growth companies are successful. • Regional vitality increases. • Innovation activities are increasingly international. • Industries renew and increase their productivity. • Innovation activities boost well-being.
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During the implementation phase of the technology programme the match of project portfolio and actions are compared with the original targets and plans is evaluated, and are the targets and added value being reached. Based on this evaluation the need for redirecting of the technology programme or the need to start new actions is defined. During the implementation also attention is paid to ensuring the utilisation of the results.
The added value of the technology programmes is to a large extent created by technology programme services. The technology programmes have offered e.g., following services:
• Internationalisation services, including market studies, excursions, trade fairs, partner search etc. • Business development support (financing for business plan creation and commercialisation). • Vision and foresight work (roadmaps, technology reviews, studies) • Activation and networking (direct contacts, stakeholder cooperation, seminars). • Communication (www, brochures, seminars, marketing, other communication). • Deployment of the results (result materials, commercialization services).
The follow-up of the progress of the technology programme is also counted as technology programme service.
A technology programme has a technology programme manager and an operative technology programme team within Tekes, and possibly an external coordinator, whose responsibility is mainly to take care of practical arrangements in the technology programme, and a steering group, whose task is to direct the strategic emphasis of the technology programme according to the plan approved by Tekes board. Steering group also follows the progress of the programme and supervises the implementation. Tekes selects to the steering teams visionary experts of technology and business having broad experience. The members do not represent their background organisations, but their own personal know-how. Tekes pays no compensations for the steering group work.
All technology programmes do not need similar type of management. What is important is that the near term targets and the interests of different parties can be matched together and that a longer time vision can be formed. A positive, development friendly atmosphere is very essential for successful management.
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The framework for the success of a technology programme is to a large extent created during the planning phase. On the other hand, as the environments of the implementation are getting more complex, the changes are faster and anticipation of the development is more and more difficult, the steering actions during the technology programme are becoming more important for the success. During the planning phase, besides the strategic choices, the success will be increasingly influenced by the extent to which the technology programme concept can be made proactive and reactive with respect to the changing environment.
The quality of steering group work has a central influence for the success of the technology programmes. Activity, commitment, positive drive, and capability to take distance from own role as a representative of an interest group for the benefit of technology programme goals are properties that have a linkage to successful steering group work.
Evaluation of the Technology Programmes
Tekes technology programmes are always evaluated at the end of the technology programme and often also halfway through. The aim of the evaluation is to provide feedback on how the technology programme aims have been realised, to find out how relevant the technology programme is and to produce information to support the strategic development of technology programme activities and the activities of Tekes in general. In addition to evaluation of individual technology programmes, Tekes continuously assesses the technology programme activity from different angles in order to improve it continuously as one of Tekes core processes.
(www.tekes.fi, LTT-Tutkimus Oy, Teknologiakatsaus, Tekes, Mikko Valtakari, Mervi Rajahonka, Markku Tinnilä and Anssi Kujala, to be published 2007 )
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16.3 Technology Programme Preparation and Strategy
Before a technology programme is started, it must be well prepared and have clear strategy:
• Preparation of the programme – Clarify the target setting and how it will be measured – Identify the expected stakeholders and participants – Evaluate the available qualified resources in the country – Identify present international cooperation partners – Define the intended international context for the programme – Positioning of the programme with respect of the ongoing structures and initiatives – Define the scope – Nominate programme manager and steering group. • Defining the strategy of the programme – Steering group defines the strategy Programme target setting Place in the innovation chain: basic research, applied research, product development How the results will benefit the society Expected time span of utilisation of results Risk level Possible test period in the beginning of the programme with the possibility to cancel the programme if the progress is not expected. – Set of tools to be used – Criteria for selection of projects to be funded, e.g., Fit with the targets of the programme Cooperation of different parties Level of risk taking Expected utilisation of the results Other targets, e.g., support of SMEs, creation of competence infrastructure.
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16.4 Oil Shale Process Development Programme
Vision:
Estonia is one of the worlds leading developers of technologies for low grade oil reserves
• Considering the available resources and foreseen utilization of development results, the scope of the Oil Shale Process Development Programme could be roughly 10M€ during 3 years, consisting of 30-40 R&D projects. Substantial contribution from the enterprises is foreseen. Enterprise projects funded within the programme will be coordinated to avoid overlapping efforts. • Programme target setting – Target of the programme is to support the redesign and coordination of total oil shale process (from mining to end users) so that the existing resources can be utilised in an efficient and sustainable way. It will bring together all players in the value chain of oil shale. Trimming the Estonian total oil shale process to excellent shape will also produce world class know-how about low grade oil resource utilisation, which will be commercialised and offered in international market in form of products and services. • Place in the innovation chain: applied research, product, and process development. • Expected time to utilisation of results: Immediate … 5 years. • Risk level: > 50% of projects will be successful. • Key set of tools to be used: – Funding of R&D projects: cooperation as prerequisite for funding – Communication Improving public image of the industry – Seminars for networking – Steering group work: commitment of core team consisting of decision makers from different parts of the value chain – Internationalisation to ease the export of the know-how – Programme manager services: strong coordinator to pull together the whole chain.
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16.5 Renewable Sources Development Programme
Vision:
Estonia has high competence level of utilising other sources of energy and maximising the use of local renewable energy sources in innovative, environment friendly, and effective manner.
• The tentative scope of the Renewable Sources Development Programme could be roughly 7 M€ during 5 years, consisting of ca. 20 R & D projects with a relatively large contribution from the enterprises. • Programme target setting Target of the programme is to increase the share of renewable sources in energy production by introducing new innovative ways to utilise domestic renewable energy sources and supporting investment in related new energy production capacity. Facilitate structural change. Place in the innovation chain: applied research, product, and process development. • Expected time to utilisation of results: Immediate … 10 years. • Risk level: ca. 30% of projects will be successful leading to implementation and continuous use. • Key set of tools to be used: – Funding of R&D projects: research and piloting projects with moderate risk. – Focused seminars for technology assessment. – Forecasting and analysing the development of the industry – Steering group work: forecasting, selecting promising development and pilot projects for funding – Internationalisation for technology transfer and forecasting.
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16.6 Emerging Energy Sources Development Programme
Vision:
Estonia will develop new technologies for emerging sources of energy
• The tentative scope of the Emerging Energy Sources Development Programme could be roughly 5M€ during 5 years, consisting of 10-15 R&D projects. The share of public funding will be bigger than in the other proposed programmes, including both national and EU contribution. • Programme target setting – Target of the programme is to support research and development in the field of new, emerging energy technologies like e.g., solar, fuel cells, fusion, hydrogen, and others in order to maintain the capabilities for fast implementation of innovations and to contribute in the international research work in the branch. Licence revenue of patented innovations is targeted. • Place in the innovation chain: basic and applied research. • Expected time to utilisation of results: 5 years … 50 years. • Risk level: ca. 5% of projects will lead to the patented innovation and licence, otherwise the work will contribute to science and education. • Key set of tools to be used: – Funding of R&D projects: novelty and innovativeness – Seminars for researchers and developers of distinct subjects – Forecasting and analysing the development of the technologies – Steering group work: selecting ambitious projects, managing the portfolio of risks – Internationalisation to communicate with the science community – Mechanism to support commercialisation of IPR.
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17 TECHNOLOGY PROGRAMME MANAGEMENT IN ESTONIAN INNOVATION STRUCTURE
The basic idea is not to increase the administration and bureaucracy but to use the present Estonian innovation structure to maximum extent. Technology programmes should have Steering Committee, which has members from different stakeholders. Steering Committee will evaluate (by utilising external experts) the content of the project proposals, competence of the applicant team and the risk level. Enterprise Estonia will make the funding decisions and administrate the funding. Programme manager’s role is to actively promote and activate the technology programmes and organise international benchmarking and cooperation.
Figure 15.Technology programme management as part of Estonian innovation structure.(Annual TrendChart Country Report for Estonia, 2005)
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18 INTENDED RESULTS
Proposed three technology programmes have very different time perspective and target setting but some key indicators can be identified to each programme:
• Oil shale process development – The total input volume of oil shale has been reduced essentially without having an impact on output of electricity and heat – The environmental friendliness of the process has improved so that the life cycle has been extended significantly – Estonia has developed for low grade oil resources technologies which are widely utilised in other countries. • Renewable source of energy – Estonia utilises mostly local renewable sources of energy – Estonia can produce 25% of the total energy consumption with renewable sources of energy by 2020 (EU target setting). • Emerging sources of energy – Estonia has increased the competence in universities and research institutes with active international cooperation and execution of high risk new emerging sources of energy development projects – Estonia has made one patented breakthrough innovation and gets remarkable IPR revenue.
One additional result from technology programmes could be improved public – private cooperation. This could be possible especially in energy efficiency and environmental friendliness issues.
Based on this data the benefits and disadvantages will be analysed and evaluated. Benefits will be taken in broad private use by giving people either rewards e.g., low interest loans or by taking the benefits as basic to new building rules and regulations.
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19 RISK ANALYSIS
To analyse the probabilities of successful implementation and important innovations the risk analyse and risk mitigation plan were made. With good programme management all these risks can be avoided.
19.1 Risk Definition
In risk definition some probable risk factors were identified. After that the probability and impact of that risk was evaluated. Based on that, the numbers were placed in right places in fourfold (Figure 16).
High Risks: 2 1. Different organisations are 1 working in isolation thus lack of real cooperation prevents the effective implementation of development strategy 2. Laws and regulations do not Impact 3 support the implementation of
development strategy → E.g pricing of oil shale as raw material for oil and energy production do not support the efficiency and environmental friendliness improvements Low 3. Lack of experience in accurate Low Probability High implementation of technology plans.
Figure 16. Risk analysis.
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19.2 Risk Mitigation
After the main risks were identified it was important to define actions how the risks could be avoided or the effect minimised (Table 16).
Risk How to mitigate 1. Different organisations are working • Develop public technology funding criteria to in isolation thus lack of real support and demand cooperation both inside cooperation prevents the effective universities and research institutes and implementation of development between universities, research institutes, and strategy companies 2. Laws and regulations doesn’t • Develop and utilise new pricing principle and support the implementation of structure for oil shale development strategy → e.g., Pricing of oil shale doesn’t support the efficiency and environmental friendliness improvements 3. Lack of experience in accurate • Define the criteria and responsibilities implementation of technology • Nominate managers for selected technology plans. programmes
Table 16. Risk mitigation.
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20 APPENDICES
20.1 International Benchmarking
20.1.1 Energy Production in Different Countries
To get a better picture of Estonian present situation, an international benchmarking (Figure 17) was made as part of the process.
Self-sufficiency of energy production: Distribution of energy productio n:
Czech Czech 4,1 % 0,1 % 0,5 % Own production 75,1 % Coal 72,6 % Net import 24,9 % 24,9 % Brown coal and peat 0,2 % 21,1 % Oil 0,9 % Natural gas 0,5% 0,5 % Nuclear power 21,1 % 0,9 % 75,1 % Hydro power 0,5 % 0,2 % Biomass 4,1 % 72,6 % Others 0,1 %
Denmark 0 % Denmark 1,9 % 7,0 % 0 % Coal 0 % 0 % Own production 100 % 0,01 % Brown coal and peat 0 % Net Import 0 % Oil 63,6 % Natural gas 27,5 % 27,5 % 100 % Nuclear power 0 % Hydro power 0,01 %
Biomass 7 % Others 1,9 % 63,6 %
Estonia Estonia Own production 72,6 % 7,8 % 0 % Coal 0 % Net import 27,4 % Brown coal and peat 75,1 % 17,0 % 27,4 % Oil 0 % Natural gas 0 % 0 % 0 % 72,6 % Nuclear power 0 % 0,05 % 0 % Hydro power 0,05 % Biomass 17,0 % 75,1 % Others 7,8 %
Finland 0,1 % Finland 0 % 5,0 % 0 % Own production 40,8 % Coal 0 % 0 % Net import 59,2 % Brown coal and peat 5,0 % Oil 0 % Natural gas 0 % 37,8 % 40,8 % 48,7 % 59,2 % Nuclear power 37,8 % Hydro power 8,4 % Biomass 48,7 % Others 0,1 % 8,4 % France 0,1 % France 0,07 % 1,0 % Own production 49,5 % 0 % 8,9 % 0,8 % Net import 50,5 % Coal 0,07 % 3,8 % Brown coal and peat 0 % Oil 1,0 % 49,5 % 50,5 % Natural gas 0,8 % Nuclear power 85,3 % Hydro power 3,8 % Biomass 8,9 % Others 0,1 % 85,3 %
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Self-sufficiency of energy production: Distribution of energy production:
Germany 3,3 % 6,9 % 13,8 % Germany Coal 13,8 % 1,3 % Own production 38,9 % Brown coal and peat 29,3 % Net import 61,1 % Oil 2,6 % Natural gas 10,9 % 38,9 % Nuclear power 31,9 % 31,9 % 29,3 % 61,1 % Hydro power 1,3 % Biomass 6,9 % Others 3,3 % 2,6 % 10,9 %
Great Britain Great Britain 0 % 0,1 % 6,9 % Own production 100 % Coal 0 % 1,3 % 0,2 % Net import 0 % Brown coal and peat 6,9 % 9,3 % Oil 43,5 % 43,5 % Natural gas 38,8 % 100 % Nuclear power 9,3 % Hydro power 0,2 % Biomass 1,3 % 38,8 % Others 0,1 %
Hungary 0,8 % 0 % Hungary 8,5 % 0,2 % Own production 38,9 % Coal 0 % 21,5 % Net import 61,1 % Brown coal and peat 21,5 % Oil 15,2 % 30,3 % 38,9 % Natural gas 23,4 % 61,1 % Nuclear power 30,3 % Hydro power 0,2 % 15,2 % Biomass 8,5 % Others 0,8 % 23,4 %
Ireland Ireland 3,0 % 0 % 11,3 % Own production 12,9 % Coal 0 % Net import 87,1 % 12,9 % 2,8 % Brown coal and peat 46,7 % 0 % Oil 0 % 46,7 % Natural gas 36,2 % Nuclear power 0 % 87,1 % Hydro power 2,8 % Biomass 11,3 % 36,2 % Others 3 % 0 %
0 % 0 % 0 % 0 % Latvia Latvia 0,1 % 0,2 % 12,5 % Own production 41,3 % Coal 0 % Net import 58,7 % Brown coal and peat 0,1 % Oil 0 % 41,3 % Natural gas 0 % 58,7 % Nuclear power 0 % Hydro power 12,5 % Biomass 87,2 % Others 0,2 % 87,2 %
Lithuania Lithuania 0 % 0,3 % 0 % 6,2 % 14,2 % Own production 54,7 % Coal 0 % 0 % 0,7 % Net import 45,3 % Brown coal and peat 0,3 % Oil 6,2 % Natural gas 0 % 54,7 % 45,3 % Nuclear power 78,6 % Hydro power 0,7 % Biomass 14,2 % Others 0 % 78,6 %
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