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E nergia of estonia at now. Energy Policy and Regulation.
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Energy Policy and Regulation • The Estonian Government is giving high priority to its energy sector in its ongoing economic reform program. Government policy and objectives toward its energy sector can be summarized in two ways: to provide a reliable source of energy for the country, and to provide such energy at the lowest possible cost. The chosen means for accomplishing these include improving the efficiency in use of energy, improving the overall reliability of electricity generation and distribution, attracting investment capital where such capital can help finance needed infrastructure improvements, and allowing competition and diversity into areas where state-owned monopolies exist. • The Estonian Government intends to separate its policy and regulation responsibilities from actual management of energy infrastructure by decentralizing energy activities to the local municipal level where possible and to allow privatization of all enterprises that are not considered of national strategic importance. The energy regulatory functions will be carried out by mostly autonomous agencies, especially in cases where monopolies continue to exist.
In 2001, the Estonian Government began a phased-in liberalization of its electricity sector, so as to keep on track for its expected accession into the European Union. In January 2001, new electricity tariffs were established that will allow customers to choose their electricity supplier. By the spring of 2002, all electricity users will be covered by this liberalization.
Energy Summary • Estonia is unique among nations in its heavy use of oil shale. Estonia produces no significant amounts of coal, oil, or natural gas. Natural gas and petroleum products are imported. There is also some use of peat and wood waste as fuel at small heating plants. There is a reserve of 929 million metric tons of peat. Small hydroelectric power plants serve some villages.
Oil Shale • Oil shale (Kukersite) has been a major source of energy in Estonia for many decades, and is Estonia's primary mineral resource. Estonia accounts for about 70% of the world's oil shale production. Prior to World War II, use of oil shale allowed Estonia to become independent of foreign fuel and power supplies. After the war, Estonian oil shale reserves were developed to provide liquid fuel for the Soviet navy stationed at Leningrad. • Oil shale is presently by far the largest source of energy in Estonia; in 1997 oil shale provided 76% of Estonia's TPES. Since Estonia began using oil shale they have mined about 900 million metric tons. • Estonian oil shale plans to increase efficiency in its operations. Oil shale mining will continue in the Viru and Estonia mines. The Narva and Sirgala quarries will be under one firm, AS NarvaKarjaar (Narva Quarry Ltd.). The Kohtla mine and Aidu quarry will be under another firm. Estonian oil shale also plans to merge the Ahtme mine with either the Viru or Estonia mine and to stop extraction at Ahtme at the start of 2002. This will continue a pattern of shale oil mine closings, since the Tammiku mine closed in 1999.
Renewable Energy • Hydroelectric PowerAlthough Estonia has numerous rivers, it is a relatively flat country and does not have significant hydroelectric potential. The three longest rivers in the country are the Vohandu which flows eastward through southeastern Estonia, the Parnu, which flows southwest through western Estonia, and the Poltsamaa, which flows southward through central Estonia. The Narva River, which forms part of Estonia's eastern border with Russia, has the greatest discharge rate, more than all the other river systems in the country combined. A map showing Estonia's rivers is shown in Figure 2.
