Government agrees on energy development plan

Narva Power Plants in eastern Ida-Viru County. (Peeter Langovits/Postimees/Scanpix)
10/6/2016 11:49 AM
Source: BNS
Category: News

The government announced on Thursday that it had come to an agreement about the national development plan for the energy sector. The plan, outlining Estonia’s energy strategy leading up to 2030, had been on the table since the beginning of the year.

The plan aims at a functioning open and free fuel and electricity market by the year 2030. The country’s electric power network should by then have switched to the European Union frequency range, a government press release of Thursday read.

In addition, the development plan includes increasing the efficiency of energy consumption, increasing the share of renewable energy in Estonia’s energy supply, diversifying supply sources on the gas market, and reducing the number of consumer power shortages.

To increase energy efficiency, reconstructing buildings to make them more energy efficient as well as modernizing street lighting and district heating will be focused on. In terms of renewable energy development, the plan will to continue present activities until 2030 with the goal bringing renewable energy to the point where it will amount to 50% of total consumption.

To reach these goals, the biggest contribution will need to come from the energy market, which means that the tax environment, the energy market, and the price of emitting greenhouse gases will need to favor renewable energy investments. National subisdies in the renewable energy sector will have to be reduced to a minimum.

The state is planning to support making housing more energy efficient with €108.7m between 2017 and 2020. The total amount Estonia will invest in the energy sector development during the period is €363m, most of which is to be drawn from European Union structural funds.

In other major areas, Estonia will dedicate €105.6m to measures saving energy in the manufacturing sector as well as street lighting, €48.9m to the renovation of public sector buildings, €63.3m to the modernization of heating systems, and €31.3m euros to the implementation of alternative energy sources in transportation.

The new development plan will replace the previous measure, which will expire in 2020.

Editor: Dario Cavegn

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