Renewable energy policy in Estonia
Development plans
Energy Sector Development Plan
The preparation of the new Energy Sector Development Plan until 2035 was initiated by the Government in 2021 in order to update the existing Energy Sector Development Plan until 2030 approved in 2017. The national vision, goals, activities and measures will be updated in order to move towards climate-neutral energy production and consumption and to ensure energy security.
General Principles of Climate Policy
The General Principles of Climate Policy until 2050 were approved in 2017 and updated in 2023 according to Estonia’s long-term goal to achieve climate neutrality by 2050. The General Principles of Climate Policy is a vision document the principles and policy directions of which will be integrated into sectoral development plans in the future.
National Energy and Climate Plan
The Government submitted the National Energy and Climate Plan until 2030 to the European Commission in 2019. The plans are compiled by all EU member states on a uniform basis, and it describes the measures implemented in the member state to fulfil the goals of EU energy and climate policy. An updated plan must be submitted to the European Commission in 2024.
Forestry Development Plan
The preparation of the Forestry Development Plan until 2030 was initiated in 2018, but it has not yet been completed. Among other things, the plan foresees the use of wood-based biomass for energy production. After the forest reform will enter into force, the Forestry Development Plan will be replaced by the General Principles of Forest Policy until 2050, and a new development plan will no longer be drawn up.
Spatial plans
According to the existing National Spatial Plan until 2030, the unwanted impact of human activity on the climate must be avoided, a greater share of renewable energy in the energy supply must be achieved, energy-saving measures must be implemented and the environmental impact of energy production must be reduced. The plan recommends building renewable power plants in areas that have already been used for agriculture, industry or energy production and where there is a good electricity and road infrastructure.
In 2023, the Government initiated the preparation of a new National Spatial Plan until 2050, as the current plan until 2030 has already been largely implemented. In addition, the current plan does not address several current needs such as energy security and adaptation to climate change. The new plan addresses, among other things, the development of energy and gas infrastructure in relation to the development of human settlement. The national plan is also based on the current Estonian Maritime Spatial Plan.
Spatial planning of the marine area makes it possible to determine where and under what conditions various developments in the marine area are most appropriate. The plan determines, among other things, the areas suitable for wind energy development, the total area of which, including the innovation area and the reserve area, is 1783 km2, as well as the guidelines and conditions for wind energy development in these areas.
National Designated Spatial Plan for Electricity Connections in the Gulf of Livonia
In 2022, the Government initiated the preparation of a National Designated Spatial Plan for Electricity Connections in the Gulf of Livonia. The purpose of the plan is to plan the electrical connections of the future offshore wind farm in the Gulf of Livonia, through which the electricity produced from wind at sea is brought to the main grid on land, from where it reaches consumers. An offshore wind farm is being developed in the Gulf of Livonia, consisting of 50 to 70 wind turbines with a total power of up to 1000 MW.
Comprehensive and Designated Spatial Plans of Local Governments
The construction of objects with a significant spatial impact, such as wind farms, are generally foreseen in the Comprehensive Plans of local governments, on the basis of which Detailed Plans are drawn up or design conditions are issued. Due to the need to speed up the development of renewable energy, Comprehensive Plans are currently being prepared in several municipalities across Estonia. In the event that the construction of the wind farm is not planned in the Comprehensive Plan, a Designated Spatial Plan of the local government must be carried out.
Laws and regulations
Energy Sector Organization Act
The Energy Sector Organization Act stipulates the principles of promoting renewable energy and the requirements for improving energy efficiency by the public and private sector. By 2030, renewable energy will account for at least 65 per cent of gross domestic final consumption of energy. More specifically, renewable energy will account for at least 100 per cent of gross final consumption of electricity and for at least 63 per cent of gross final consumption of thermal energy.
The Electricity Market Act regulates the production, storage, transmission, sale, export, import and transit of electricity, as well as the economic and technical management of the electricity system. The law stipulates the principles of the operation of the electricity market based on the need to ensure efficient, reasonably priced electricity supply that meets environmental requirements and consumer needs.
The Grid Code lays down the technical requirements applicable to power-generating installations by virtue of the security of supply of the electricity system and simplified conditions for connection to the network of power-generating installations whose capacity is below 15 kW and which use a renewable source for generation.
The District Heating Act regulates activities related to the production, distribution and sale of heat in the district heating network and connection to the network in order to ensure efficient, reasonably priced heat supply that meets environmental requirements and consumer needs.
The Building Code applies to construction works, their design, building, use and maintenance in order to promote sustainable development and to ensure the safety, purposeful functionality and usability of the built environment. The Code also applies in the territorial sea.
Minimum Energy Efficiency Requirements for Buildings
The regulation establishes minimum requirements for the energy efficiency of buildings, including residential and non-residential buildings.
The Planning Act stipulates the principles of spatial planning and the requirements for the planning procedure and the implementation of plans in order to create the prerequisites of spatial development, land use, high-quality living and the built environment that takes into account the needs and interests of society. Environmentally friendly and energy-efficient solutions should be preferred when planning, and the use of renewable energy should be encouraged.
The Liquid Fuel Act stipulates the basis and procedure for handling liquid fuel for the purpose of collecting taxes and ensuring the quality of the most commonly used motor fuels, the obligation to register fuel containers, the requirements for the consumption of biofuel in transport, the organization of state supervision and liability for violations of the law.
Alcohol, Tobacco, Fuel and Electricity Excise Duty Act
Pursuant to this Act, excise duty is imposed on fuel and electricity, among other goods.
Atmospheric Air Protection Act
The Atmospheric Air Protection Act stipulates measures to maintain and improve ambient air quality, requirements to protect the ozone layer, measures to mitigate climate change and reduce greenhouse gas emissions, organization of state supervision and liability for violations of the law.
The Climate-Resilient Economy Act
The Government initiated the drafting of the Climate-Resilient Economy Act in 2023. The law will set sectoral greenhouse gas emission reduction targets for the years 2030, 2035, 2040 and for the year 2050 across all sectors. It will also establish the principles for the mitigation of climate change and for the management of the necessary financial resources and will lay the basis for a more environmentally friendly economy and for a stronger competitive advantage.
