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This communication presents the results of the research carried out by the Stockholm Environment Institute Tallinn Centre, in connection with the preparation of the Nordic power roadmap 2050. Development needs of the Estonian energy sector were assessed in order to prepare policy recommendations for enabling the shift from fossil fuel based electricity production to the use of 100% renewable domestic energy sources and fuels on a national level.
The current communication has a particular focus on the new policy instruments needed to enhance the shift to 100% renewables-based electricity production within the liberalized power market in Estonia. The Estonian climate and energy policy goals have been aiming for low-carbon economy since regaining independence in 1991, but until today these goals have not been achieved due to insufficient application of the relevant policy measures. The country’s electricity production is 85% based on non-conventional fossil oil shale and all oil-based motor fuels are imported. In 2012, energy intensity of the Estonian GDP was amongst the highest in the EU. The most recent energy sector development strategies until 2030 do foresee maintaining the dependency on oil shale use in power production.
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