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to promote intra-Baltic and Baltic-Nordic energy research projects with the participation of Baltic researchers
to create a Baltic-Nordic PhD collaboration programme
to foster an exchange of energy research between the Baltic and Nordic countries.
The MOU builds on the successful co-operation between researchers from the three Baltic countries and the Nordic Energy Research, in the preparation of the “Baltic Energy Technology Scenarios 2018” (BENTE). BENTE analysed several scenarios to explore the drivers and their impacts on possible changes in the energy systems in the three Baltic countries, including which path would lead them towards the 2°C scenario. The key findings of BENTE include that their national renewable energy targets can be achieved using domestic resources and that this would reduce their import dependency and provide an effective hedge against high electricity prices. However, even in the 4°C scenario, the three Baltic countries would not be reaching their 2030 non-ETS sector targets, although Estonia will be close (Nordic Council of Ministers, 2018). Reaching the 2030 non-ETS targets largely depends on the early adoption of additional energy policy and climate measures, especially increasing the share of renewable energy. The report also indicated further areas of joint technology co-operation that are reflected in the MOU.
Estonia is a member of the International Renewable Energy Agency, through which it is exploring ways to meet its commitments under the EU Renewable Energy Directive. Areas of common interest include sectoral policy implementations and renewable energy development, such as the use of liquid biofuels in transport. Estonia does not participate in the Clean Energy Ministerial, nor in Mission Innovation.
Monitoring and evaluation
Estonia does not have a specific monitoring and evaluation system in place for its energy RD&D activities. There is also no plan to create and implement such a system. The evaluation of the ETP in 2012 identified several issues, including the need to increase co-operation between research institutions and the private sector to direct RD&D towards areas with more direct application and economic impacts, and the insufficient supply of qualified energy sector experts.
The Ministry of Education and Research evaluates the outcomes of the country’s overall RD&D programme. An analysis undertaken in 2017 showed that a large number of RD&D goals set in the RDI for 2020 will not be met. Investments in total R&D have declined, from 2.31% of GDP in 2011 to 1.28% in 2016. Estonian scholars’ publications are on path to meet the targets set in the RDI; however, these do not necessarily translate into more output-oriented research (ERR Media, 2018). However, Estonia has been successfully applying for funds under the EU Horizon 2020 programme and has received above EU average funding in terms of funding per population.
The European Innovation Scoreboard 2018, which assesses relative strengths and weaknesses of national innovation systems, considers Estonia a moderate innovator with a performance below the European Union average (EC, 2018b). Estonia’s innovation performance improved until 2015, but due to a strong decline in 2016, the level in 2017 was 3.2% below the level in 2010. This is despite an above EU average score in the
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innovation-friendly environment, human resources and intellectual assets categories. However, this could not compensate for a below-average performance in the finance and support category that declined by almost 34% between 2016 and 2017, and the weak performance in the sales impact assessment (EC, 2018b).
An ongoing challenge for Estonian RD&D is the continuous disparity between the type of research supported by public funds, mainly basic research and academic publications, and the requirements of industry for more applied research, which can translate into economic opportunities (Kattel and Stamenov, 2017). This was also a key finding of the 2012 review of the ETP and the 2017 evaluation report of the Ministry of Education and Research and was also recognised in the 2013 In-depth Review of Estonia (IEA, 2013). This is partly due to the emphasis put on the number of publications and citations in the assessment of research institutions.
Assessment
The NDPES 2030 sets out Estonia’s plans for energy-related research and development activities. This includes trying to simplify and better co-ordinate R&D activities.
Estonia has identified key areas of energy importance to focus its R&D efforts on. These include areas of comparative advantage, such as transitioning to alternative uses of oil shale and the development of biomethane in the transport sector. There is also a focus on areas of significant energy consumption, such as heating. Given that Estonia is a relatively small country, the IEA thinks this is a sensible approach.
Funding for energy R&D in Estonia comes from EU funds like Horizon 2020, and Estonian state budget programmes. Some of these funds and programmes appear to have overlapping objectives and there may be an opportunity to better use the funding to more effect. As an example, the R&D funding from the national budget under the national development plan (EUR 1.6 million over four years) appears too small to have a meaningful impact. This is especially so when spread across seven R&D programme areas, the Nordic-Baltic energy research programme and participation in the IEA’s technology collaboration programmes.
The government has recognised the importance of international and regional co-operation on areas of common interest. The IEA commends this approach as it could help build scale, speed up developments and leverage additional private investment.
Estonia has well-established institutions, such as Kredex and the Environmental Investment Centre, that help to finance research, development, demonstration and commercialisation projects related to environment and energy. For example, the Environmental Investment Centre channels funding from state budget funds and EU funds for the implementation of projects, including in priority R&D areas such as biomethane production and efficiency improvements in district heating. These appear to be working effectively and have the support of market participants.
R&D statistics do not appear to be collected in an efficient and systematic way. Given the efforts made in Estonia to move towards digitalisation and the range of different R&D funding sources and programmes, there is opportunity to improve the system of R&D data collection, its transparency and reporting, to the benefit of systematic evaluation, which seems to be lacking.
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The government’s review of the previous Energy Technology Programme found that there was too much emphasis on research publications and citations in universities, rather than in helping to solve real world problems with industry. The NDPES 2030 recognised the need to realign funding away from theoretical academia to RD&D demonstration projects. A 2017 analysis undertaken by the European Union suggests that there is still significant potential to improve in this area.
Recommendations
The government of Estonia should:
Focus its energy R&D efforts on areas of most relevance to Estonia, such as alternative uses for oil shale, biomethane for transport, improvements to heating and digital solutions.
Explore ways to better collaborate regionally and internationally on areas of common interest in energy R&D, including leveraging private sector investment.
Systematically evaluate research programmes, notably to see whether they contribute to practical innovations.
References
EAS (Enterprise Estonia) (2019), Development of Clusters, EAS, Tallinn, https://www.eas.ee/teenus/development-of-clusters/?lang=en (accessed on 15 March 2019).
European Commission (EC) (2017a), RIO Country Report 2017:Estonia, Luxembourg, https://rio.jrc.ec.europa.eu/en/country-analysis/Estonia/country-report.
EC (2017b), Energy Union Factsheet Estonia, EC, Brussels, https://ec.europa.eu/commission/sites/beta-political/files/energy-union-factsheet- estonia_en.pdf.
EC (European Commission) (2018a), Commission Opinion of 29.1.2018 under Regulation (EU) No 994/2010 on the Preventive Action Plan and Emergency Plan Submitted by the Competent Authority of the Republic of Estonia to the European Commission, EC, Brussels, https://ec.europa.eu/energy/sites/ener/files/documents/c_472_ee_en.pdf.
EC (2018b), European Innovation Scoreboard 2018, EC, Luxembourg, http://ec.europa.eu/growth/industry/innovation/facts-figures/scoreboards/index_en.htm.
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ERR Media (2018), Estonia Failing to Meet Research and Development Goals, ERR Media, Tallinn, https://news.err.ee/855683/analysis-estonia-failing-to-meet-research-and- development-goals.
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IEA (2013), Energy Policies of IEA Countries: Estonia 2013 Review, IEA, Paris, https://webstore.iea.org/energy-policies-of-iea-countries-estonia-2013-review.
MEAC (Ministry of Economic Affairs and Communications) (2017), National Development Plan of the Energy Sector until 2030, MEAC, Tallinn, https://www.mkm.ee/en/objectives- activities/development-plans.
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MER (2014), Estonian Research and Development and Innovation Strategy 2014-2020, MER, Tartu, https://www.hm.ee/sites/default/files/estonian_rdi_strategy_20142020.pdfMER.
MoE (Ministry of the Environment) (2016), National Development Plan for the Use of Oil Shale 2016-2030, MoE, Tallinn, https://www.envir.ee/sites/default/files/2016_2030ak_ingl.pdf.
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