ANNEX A: Institutions and organisations with energy sector responsibilities
The Ministry of Economic Affairs and Communications (MEAC) has overall responsibility for energy policies and is responsible for co-ordinating the implementation of the National Development Plan for the Energy Sector. Within the ministry, the Energy Department has the main responsibility for energy and co-operates with the Building and Housing Departments on matters related to the energy efficiency of the housing stock and district heating. The Transport Department and the Energy Department are both responsible for fuel issues.
MEAC is responsible for the Electricity Market Act, and the Electricity Network Codes. MEAC is also responsible for the implementation of the EU Renewable Energy Directive and other related EU legislation. It drafts legislation proposals related to renewable energy, in consultation with other stakeholders. The ministry has two subordinate bodies that support the implementation of renewables and energy efficiency policies. The first one, the Credit and Export Guarantee Fund (KredEx Fund), works on measures targeted to the residential sector and electromobility. KredEx Fund provides guarantees for loans, mainly for reconstruction of houses and improving their energy efficiency, but also provides grants for installing renewable energy generation installations for private households (solar panels, wind generators). The second subordinate body, the
Environmental Investment Centre (EIC), implements measures targeting public infrastructure, particularly heat and electricity generation, reconstructing combined heat and power plants, district heating systems, street lighting, and wind parks. The EIC also manages funding for energy investments in the industrial sector and provides support schemes for increasing the share of renewable heat.
MEAC, the Ministry of Environment (MoE) and the Ministry of Agriculture (MoA) share responsibility for the overall legal framework, policies and measures related to renewable energy. MEAC deals directly with energy and electricity-related issues and is responsible for preparing legislative changes and presenting them to the relevant authority. The MoE and the MoA are responsible for biomass sustainability and biodiversity-related issues, which are highly relevant to renewable energy given the important role of biomass. The MoA also deals with land-use issues related to agricultural biomass.
MEAC has the responsibility for oil emergency preparedness, emergency oil stocks and other emergency measures for liquid fuels. The Estonian Oil Stockpiling Agency (OSPA), established in 2005 under the Liquid Fuel Stocks Act, is tasked with establishing and maintaining compulsory oil stocks to fulfil Estonia’s international obligations for emergency oil stocks. The agency’s operational and administration costs are covered through a stockpiling fee paid directly to OSPA by oil companies, which pass the cost of this fee on to consumers through the price paid at the pump. OPSA is a 100% state-owned enterprise. MEAC has overall supervisory functions for security of electricity and gas supply and coordinates electricity and gas security of supply crises response and communications. It undertakes these responsibilities in close coordination with the transmission system operator and the competition authority.
MEAC oversees all activities related to planning, co-ordinating and executing technological development and innovation policy, including for energy, with a special
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focus on liaising with the private sector. National support measures for innovation policy are implemented by Enterprise Estonia, which provides financing products, advice and partnership opportunities, as well as training for entrepreneurs, R&D institutions and the public. The Ministry of Education and Research has overall responsibility for planning, co-ordinating, implementing, and monitoring research and education policies, including those related to energy. It also coordinates international RD&D co-operation at the national level.
The MoE organises and co-ordinates environmental policy, including the management of the use, protection, recycling and registration of natural resources and emissions from the energy sector. Among others, the MoE regulates is responsible for the implementation and co-ordination of the National Development Plan for the Use of Shale Oil. The MoE, through the Environmental Board, issues exploration and mining licenses for oil shale. The MoE and MEAC share responsibility for climate policy which in Estonia is closely linked to the oil shale sector. The MoE is responsible for the development of green public procurement.
The Ministry of Finance (MOF) is responsible for state budget and tax policies. The MOF is the energy conservation co-ordinator for the central government buildings stock and as such responsible for implementing the renovation obligation for the public building stock. Though the obligation is not applicable to regional and local authorities; the MOF is obliged to share best practices with regional and local authorities.
The Estonian Competition Authority is the main regulatory body in the energy sector and controls and ensures the compliance of energy market participants with the market rules and regulations. The Competition Authority is independent and has a legal obligation to exercise its powers impartially. It exercises state control, supervision and monitoring in accordance with the Electricity Market Act and the Competition Act in the electricity sector and in accordance with the Natural Gas Act and the Competition Act in the gas sector.
The Competition Authority approves the methodology for the European network codes, determines gas and electricity network tariffs, and sets prices for district heating. Its responsibilities include ensuring fair competition on the renewable energy market. It also supervises the maintenance of long-term gas and electricity security of supply in cooperation with the transmission system operator and the MEAC. It prepares risk assessment, preventive action and emergency plans in the gas sector.
Some aspects of energy regulation fall under the jurisdiction of the Estonian Consumer Protection Board, which also has a supervisory role under the Electricity Market Act in areas related to safety. The Technical Surveillance Authority supervises the commissioning, use, operation and maintenance of gas installations, and monitors compliance with requirements for energy efficiency, energy performance labels and ecological design.
Elering AS is the state-owned electricity and gas transmission system operator (TSO) and electricity network service provider. Elering owns Estonia’s entire electricity transmission network and is joint owner, with neighbouring TSOs, of the respective interconnections. Elering also owns the entire Estonian gas transmission network.
Elering is a member of the European Network of Transmission System Operators for Electricity (ENTSO-E) and an associated partner for gas (ENTSO-G). The company’s
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shareholder rights are exercised by MEAC. Elering undertakes regular assessment of medium-term security of supply in the electricity sector and is also responsible for the overall balancing of the national electricity network and approves the methodology for calculating the price of balance energy and the terms and conditions for balance contracts ex ante. Elering shares responsibility for security of supply in the electricity and gas sectors with MEAC and the Competition Authority. It is also manages subsidy payment for bio-methane production.
Eesti Energia is a state-owned company with interests in oil shale mining and processing (electricity and liquefaction), renewable electricity generation, and gas imports and retail. Esti Energia also owns the majority of Estonia’s gas distribution network through its subsidiary Eesti Gas. Eesti Gas in turn has handed the operation of the distribution network to another subsidiary, Gaasivõrgud AS.
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