Natural and renewable Energy in Estonia Consumer approach

Natural and renewable Energy in Estonia. Consumer approach Tiiu Müürsepp Director of Tartu Consumer Advice and Information Centre, Estonia Riga, 20. 08. 2010 Exchange of the best practice of natural and renewable Energy in Sweden, Latvia and Estonia

Why to produce energy from renewable sources? Environmental influence of energy industry is biggest in the industry sector Estonia’s electricity production caused 80% from total air pollution and about 95% from total water pollution (2006) Europe Union climate policy: Emitted greenhouse gases diminish competitivity Europe Union energy police: focus on liberalisation of energy markets and use of energy sources with slender environmental impact

Eesti Energia energy production an international company known as Eesti Energia in Estonia, internationally operates under the Enefit brand 94% of electricity is produced from oil-shale Eesti Energia have to purchace quota ca 1 mln ton for 2010, price of quota ca 15 €/t In the situation when emitted CO 2 amounts are not covered with corresponding number of quota have the company pay forfeit 100 €/t in years 2008 -2012

Electricity and heat for our homes 2009/2010

Eesti Energia overview Source: www. energia. ee

Sources of electricity production situate mainly in North-East Estonia, in neighbourhood of oil shale pits So is our electricity system mainly “ 0 ne direction”, for transportation of electricity from North-East Estonia to the other parts of Estonia This eliminates electricity production working in principles of distributed generation, less till 2020

The need of generating power from renewable energy sources in Estonia During the next few years, power generation from oil shale, which currently generates 93% og Estonia’s power may drop from the current level of 7400 GWh to 3600 GWh in 2016 This is due to EU CO 2 and SO 2 regulations, which first dictate to decrease production from older oil shale units and then cease it for good. At the same time, power consumption according to prognosis increases from 7900 GWh in 2008 to 9200 GWh in 2016 Source: Leo Rummel, Eesti Energia power production development department

Renewable energy Estonian Electricity Market Act defines renowable energy sources as ◦ water, ◦ wind, ◦ sun, ◦ waves, ◦ tides, ◦ geothermal energy, ◦ gas from landfils, ◦ gas from waste water treatment, ◦ biogas and biomass

Renewable energy It would be possible to cover the deficit of power generation capacities in Estonia in the near future using only renewable sources. He majority of deficit could be covered by a system consisting of 2000 MW of wind parks and 1200 MW of pumped storage power plant. About a quater of deficit could be covered – by biomass and hydropower capacitiescogeneration If all the possible renewable energy capacities have been constructed by 2020, 70% of Estonia’s power consumption could be covered by renewable energy. Source: Leo Rummel, Eesti Energia

The possibilities of generating power from renewable energy sources in Estonia The power generation capacities from renewable sources will increase, since there are lot of renewable energy projects under development and some of them are already under construction The level in 2008 was 1, 5% of generation By the end of 2009, it will presumably have increased to 9% Then to 24, 5% in 2012 and to 35, 2% in 2016

The possibilities of generating power from renewable energy sources in Estonia About half of planned renewable power will be generated from biomass CHP The other half from wind energy in the cowork with pump power stations a little bit of hydropower

Renewable energy produced by Eesti Energia

Eesti Energia produces currently electricity from wind, water and biomass Source: www. energia. ee /en /power/renewable

Eesti Energia plans to produce electricity from multiple energy sources in oder to reduce the emission on greenhouse gases Source: www. energia. ee/en/power/renewable

The importance of renewable energy in the Estonian electricity production is growing In the production of wind energy the remarkable sprung was in 2005, afterwards is the production grown but slowlier, wind energy increased 47% in 2009 The production of hydro plants was stabiler and slowlier, increase in 2009 was 10% Although the importance of renewable electricity is relative small, it is grown from year to year and constituted 2, 1% in 2008 and 6, 1% in 2009

EU support for wider use of renewable energy sources In 2009, an application round of the measure "Extended use of renewable energy sources for the generation of energy" financed from the Europe Regional Development Fund ERDF was held. In the framework of that round, 150 million kroons worth of grants were awarded for the reconstruction of boiler houses and district heating networks and the construction of combined generation plants The application round was open to local governments, non-profit associations, businesses and foundations. Applications accepts Environmental Investment Centre

Renewable energy and fuels Directive 2001/77/EC on the promotion of electricity Directive 2003/30/EC on the promotion of the use of produced from renewable energy source in the internal electricity market ---goal for Estonia 5, 1% in 2010 biofuels or other renewable fuels for transport Goals for member states, biofuel 5, 75% from sold transport fuels Directive 2009/28/EC 23. 04. 2009 on the promotion Goal for Estonia 25% renewable energy in 2020 of the use of energy from renewable sources

Research: Estonians don’t want to pay more for renewable energy International research company Gf. K has provided in last two years research about environmental issues 67% Estonians in 2009 and 71% in 2010 aren’t ready to pay more for renewable energy, said PRB Youth and especially students are the most agreed group to pay more for renewable energy But for better environment we need to pay for green energy

What will happen in 2013? Consumers are affraid that opening of electricity market will not offer energy with lower price but in opposite, as the Skandinavian experience showed. High price is a serious problem for Scandinavian consumer.

Electricity price for consumers 1. 03. 2010 price rised 3% - added was excise and network payment rised 1, 5% 1. 06. 2010 - added was renewable energy payment 12, 64 senti/k. Wh = 0, 81 euro/k. Wh Renewable energy payment is payment appointed from state for financing energy produce from renewable energy sources and for combined energy production

Estonia is with their long coastal strip suitable for installing the wind generators Source for this slide and for next 7 slides www. tuuleenergia. ee/about/statistika

Wind energy in Estonia There was 142 MW wind energy installed in Estonia in the end of 2009 Last year (2009) were installed: 39 MW Aulepa Wind Farm (Eesti Energia AS), 9 MW Vanaküla Wind Farm and 16 MW Tooma Wind Farm (Nelja Energia OÜ) in total the wind energy capacity in Estonia increased by 64 MW in 2009

Wind energy in Estonia There was 142 MW wind energy installed in Estonia in the end of 2009. The wind energy capacity in Estonia increased by 64 MW in 2009

Wind energy capacity MW in Estonia Source: www. tuuleenergia. ee

Windparks in developing 379, 38 MW wind energy will be developed in 2010 -2013, 92, 9 126, 98 98, 5 61 MW MW in in 2010 2011 2012 2013

Wind energy projects 2010 -2013 Wind parks developers and planned wind energy in MW, Eesti Energia projects about 26%

Offshore windparks Plans 2014. . . Nelja Energia OÜ Hiiumaa 700 Liivi laht 1000 Eesti Energia AS Neugrund 100 -200 Neugrund OÜ

Before the wind park set up Environmental influence evaluations Public discussions Negotiations with local municipalities Negotiations to join to electricity network

The most important bottlenecks are strict regulation and standards in wind energy production Wind parks in other countries can easier to join to electricity network

Combined heat and power production (CHP) More environment friendly – less carbon dioxide emission Produces energy as heat as well electricity, CHP are built near their consumer, this allows electricity losses to be reduced and heat prices to be lowered Smaler CHP are built in regions where the combined energy production is economically feasible and can ensure the local power supply with the lowest possible environmental impact.

Combined heat and power Tartu 25 MW on biomass and turf working CHP station started up in January 2009 Väo 25 MW on biomass and turf working CHP station started up also in January 2009 Application: to built the Tallinn CHP station (litter and wood) 2 x 40 MW

Possibilities to produce energy from renewable sources 2009 -2016 2009: Väo CHP 23 MW, Tartu CHP 23 MW Aulepa WP 39 MW 2012: Pärnu CHP 22 MW, Ahtme CHP 22 MW Narva WP 50 MW + WP 70 MW 2016: 500 MW windparks, Iru waste CHP 15 MW, Narva 10% biomass 43 MW

Biomass resources in Estonia All needed energy could be produced from biomass, if to take to use 0, 4 mln ha unused farmland to grow there willow 1/3 energy could be produced from unused wood. Turf and cane could be sources for 10% energy + Biomass generated in the agricultural sector- mainly hays �Source : Estonian Land University

Solar resource in Estonia The price of energy produced by solar panels is 5 times higher than wind energy price The price is not competition capable

Water energy resource in Estonia Water resource in Estonia is small ( without Narva river) Linnamäe and Keila-Joa hydroelectricity plants Only 2 -5% from energy production

Renewable energy It’s possible to cover 70% from energy consumption in Estonia in 2020 with renewable energy Source: Possibilities to produce electricity from renowable energy source, Leo Rummel, Tallinn Technical University

Strengths and weaknesses Big renewable energy sources Oil shale dominates in energy produce Estonia’s todays electricity tranfer network doesn’t enable to join enough wind energy producers

Application plan of developing scheme in Estonia Renewable energy: 17, 5% in 2006 25% in 2020 CHP in electricity brutoconsum 10, 2% in 2007 20% in 2020 Fuels on base renewable energy sources: 0, 06% in 2007 10% in 2020 Source: www. mkm. ee

Renewable energy production is in Estonia on good level but there are some potentitals to develop forward Supports for produce of renewable energy in Estonia are good for local municipalities, NGOs, But there isn’t any support or advantage for using renewable energy at home economics

Thank you for attention! Tiiu Müürsepp Tartu Tarbijanõustamis- ja Infokeskus Tartu Consumer Advice and Information Centre tiiu. muursepp@ut. ee