Ecology, Energy, Estonia, EU – Baltic States, Legislation

The ministry commented upon the plan presented in the middle of the week by the Estonian Chamber of Renewable Energy to fully transition to using renewable energy, noting that in the current market situation production of renewable energy would remain too expensive.

The NGO presented its vision, according to which Estonia could fully be powered by renewable energy by the year 2030, by improving individuals’ awareness of energy matters and changing the energy policy. The organisation is of the opinion that biomass should be used more than it currently is, and there ought to be more hydroenergy and wind energy plants.

The Ministry of Economic Affairs is of the position that the plan of the NGO is overly optimistic and based on wrong premises, leaving aside the current market situation and the price that has formed. Deputy Secretary General of the ministry Ando Leppiman stated that the study indicates as of there is currently no production of energy in Estonia.

“We have to take into account the fact that new production capacities would be established on the existing electricity market and the market is not at zero level, but rather on a level where there are more production capacities in Estonia than is necessary for consumption in Estonia,” he explained.

“If we were to speaking about production of renewable energy, the cost price of it is more expensive than the current market price of electricity,” said Leppiman, adding that without subsidies renewable energy would not be produced.

Pursuant to a directive of the European Union, Estonia will have to ensure that by the year 2020, 25% of all energy would be from renewable sources. Nearly 20% of energy consumed at the moment is renewable energy and hence the State is quite close to the target level.