Wind power in Estonia

1. IBA SEERIL Conference 2008 Wind power in Estonia IBA SEERIL Conference Copenhagen, 28 April 2008 Imbi Jürgen Attorney Tark & Co

2. Wind power in Estonia • Facts • electricity market in general, wind power • Policy • targets, incentives, liberal approach • Permits and planning • types and stages of plans, EIA • Public participation • forms of participation, scope of participants • Developments IBA SEERIL Conference 2008

3. Wind power in Estonia – Facts (1) • Small electricity market – overall production 2007: approx 12 TWh • Energy sources for production of electricity (2006): • 93 % fossil fuels (oil shale mined in Estonia) • 5.3 % land gas • 1.7 % renewable sources • Wind – the main renewable source • Only onshore wind farms to date • High offshore potential, projects on hold due to lack of legislation IBA SEERIL Conference 2008

4. Wind power in Estonia – Facts (2) • Rapid growth in wind power production : • First wind power generator erected in 1997 • Number of wind farms operating • in 2002: 2 (2.3 MW)  in 2007: 12 (50 MW) • Significant number of wind farms being developed and planned – approx 20 projects, capacity approx 600 MW • At least three offshore wind farm projects planned (capacity 700 – 2100 MW) • Total amount of electricity generated from wind in 2007: 98.9 GWh; prognosis for 2008: 166.5 GWh IBA SEERIL Conference 2008

5. Wind power in Estonia – Policy (1) • Targets for share of RES-E in gross electricity consumption: • National indicative target under Renewables Directive (2001/77/EC): 5.1 % by 2010 • Targets under national development plans on electricity sector: 8 % by 2015, 10 % by 2020. • Targets likely to be increased as a result of the European Energy and Climate Change Package – Estonia’s target for the share of renewable energy to increase from 18 % in 2005 to 25 % by 2020 IBA SEERIL Conference 2008

6. Wind power in Estonia – Policy (2) • Incentives to RES-E by Electricity Market Act: • Purchase obligation at fixed feed-in tariffs – right to sell RES-E as a fixed supply at ≈ € 0.073/kWh. • Alternative: subsidy – right to sell RES-E at market price and apply for a subsidy (paid by the TSO) of ≈ € 0.053/kWh • Feed-in tariffs and subsidy applicable only to generation installationwith capacity not exceeding 100 MW, and within 12 years of the start of production. • Limits applied to wind energy – right to sell at fixed tariffs until the total annual amount of electricity generated from wind in Estonia is up to 200 GWh and right to subsidy until the total annual amount of electricity generated from wind in Estonia is up to 400 GWh. IBA SEERIL Conference 2008

7. Wind power in Estonia – Policy (3) • Liberal approach: • No tenders for the right to increase electricity generation capacity (e.g. Lithuania) or to produce wind power or to sell the produced electricity at fixed tariffs (e.g. Latvia); no predefined zones for generation of wind power (e.g. Lithuania). • Permits and authorisations for production: • Construction permit (and permit for use) – local municipalities • Licence for production - Competition Board (national authority) • Lack of comprehensive national development plans for renewable energy; decentralised procedures (224 local municipalities as self-governing units) IBA SEERIL Conference 2008

8. Wind power in Estonia – permits and planning (1) • Types of plans by Planning Act: • National spatial plan • County plan (15 counties) • Comprehensive plan – for the territory of a local municipality, setting out the bases for the preparation of detailed plans / establishment of land use provisions and building provisions for areas where detailed planning is not mandatory. • Detailed plan IBA SEERIL Conference 2008

9. Wind power in Estonia – permits and planning (2) • Plans required for wind farms:  • Wind farms of more than 5 generators and total capacity of 7.5 MW - objects of significant spatial impact → comprehensive plan required for choice of location. • A comprehensive plan may be prepared for the territory of one or more local municipalities. It may be prepared as a thematic plan specifying and amending a valid comprehensive plan. • Detailed plan in certain areas IBA SEERIL Conference 2008

10. Wind power in Estonia – permits and planning (3) • Main stages of the planning procedures (comprehensive or detailed plan): • Initiation – by the local municipality at the request of anyone (developer) • Consultations, approvals • Acceptance – by the local municipality • Public display • Adoption – by the local municipality IBA SEERIL Conference 2008

11. Wind power in Estonia – permits and planning (4) • Environmental impact assessment to be carried out by planning wind power production: • Strategic environmental impact assessment required by preparation of a comprehensive plan (all wind farms of more than 5 generators and total capacity of 7.5 MW) • Environmental impact assessment prerequisite in most cases for issuing building permits for smaller wind farms. • SEIA to be carried out in parallel with the planning procedure IBA SEERIL Conference 2008

12. Wind power in Estonia – permits and planning (5) • Result of the planning and SEIA procedures: • comprehensive or detailed plan → basis for construction project → construction permit for power generation installations, to be issued by the local municipality. • Upon completion of construction – permit of use to the object, if conforms with the project, to be issued by the local municipality. IBA SEERIL Conference 2008

13. Wind power in Estonia – public participation (1) • Forms of public participation: • Right to participate in the planning and EIA proceedings: • right to information • right to make proposals • public displays and discussions etc • Right to contest the administrative acts adopted in the course of planning and EIA • initiation of supervision by higher authorities • initiation of administrative court proceedings IBA SEERIL Conference 2008

14. Wind power in Estonia – public participation (2) • The scope of persons entitled to participate in the planning and EIA process: • Individuals; • Companies, NPOs, any forms of legal persons; • Right to file a claim with the court also for non-persons (groups of interested persons representing local people) • Right to file a claim with the court also in case when violation of rights of the claimant is not proven, anyone interested may claim IBA SEERIL Conference 2008

15. Wind power in Estonia – developments • The effect of the European Energy and Climate Change Package • targets for share of renewable electricity by 2020 may increase • national action plan on renewable energy to be prepared • amendments in national legislation, inter alia to make the procedure more efficient • New national energy development plan being elaborated, still in very initial stage • Legislation on offshore wind farms to be expected IBA SEERIL Conference 2008

16. Wind power in Estonia Thank you for your attention! Contact details: Tark & Co Roosikrantsi 2, 10119 Tallinn, Estonia Tel: +372 611 0900; Fax: +372 611 0911 E-mail: tarkco@tarkco.ee www.tarkco.com Contact: Imbi Jürgen E-mail: imbi.jurgen@tarkco.ee IBA SEERIL Conference 2008