1. EXECUTIVE SUMMARY
will connect the gas systems of the Baltic states with Central Europe. Estonia and its neighbouring EU countries are pursuing the establishment of common rules for a competitive, integrated and liquid regional gas market.
Based on IEA methodology for net imports, Estonia’s oil stockholding obligation is relatively low due to the volumes of shale oil exports. However, as a member of the European Union, its relevant stockholding obligation is 61 days of consumption of main oil products. This level of stocks is well above the 90-day net-import level required for IEA countries. Since Estonia does not have a refinery, all stocks are held as refined products. Estonia neither owns nor operates any public storage facilities; all stocks are held under storage contracts, with a significant share of the mandatory stocks held in neighbouring countries.
Key recommendations
The government of Estonia should:
Clarify energy and climate targets for 2030 and 2050 and implement a regular monitoring system of progress achieved towards reaching these targets.
Undertake a robust analysis of least-cost renewable energy deployment pathways with a comprehensive scope covering: domestic renewable resource potential; the role of all viable renewable energy technologies and supporting infrastructure; and an examination of policy, regulatory and market barriers to renewables deployment, including pre-developing potential wind farm sites.
Review energy taxation of all fuels to reflect their external costs, including carbon content and particles, and accelerate the switch to low-emission technologies, notably in transport.
Increase the financial support for the renovation of the existing building stock, in particular residential buildings, and develop an ESCO market.
Encourage energy efficiency investments by district heating companies, for instance by amending the tariff regulation methodology in the District Heating Act so that savings can be shared between consumers and the companies.
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ENERGY INSIGHTS