Bio-mass energy and production Estonia 2005-2013

Section I
Purposes and the current situation of renewable energy in Estonia
By Rene Tammist, Manager of Estonian Renewable Energy Association

Structure Introduction of Estonian Renewable Energy Association Renewable energy in Estonia today Perspective up to 2020 The main activities in 2011

Renewable energy in Estonia today

Renewable sources are water, wind, sun, waves, tides, earth temperature, dumping ground wastegas, gas emission/segregation from sewage, biogas and biomass

 282,4 MW power to the end of 2011 Up to 2007 minimum investments Soaring in 2009: 107,5 MW Towards the end of 2011 there is produced 767 GWh power from renewable sources, 412 GWh from biomass and 343 GWh from wind power

Prospective of renewable enery in Estonia up to 2020

Purpose according to the renewable energy directive: 25% renewable powers from total final consumption, 7% higher from consumption level in 2005 (18%) Up to the Member State whether it will be achieved in heating and cooling, electricity or transporting fuel consumption (min 10% renewable fuels in the field of According to the National Renewable Energy Action Plans (NREAP) the renewable sources must come from heating and cooling (from 31,3% in 2005 to 38,1% in 2020), from electricity (from 0,1% to 17,6%), from transport (from 0% to 9,9%)

727 MWel powers to the end of 2020 according to the National Renewable Energy Action Plans up to year 2020 1919 GWh electricity produced of renewable sources

 Basically all the growth in the country is planned through the wind power; biogas and solar power are not included to the plans Electricity Economics Action Plans accepted in 2009 (up to 2018) budgets for 1160 MW renewable powers (incl. wind 900 MW). Today the existing powers are acceptable

Subsidization of Energies
It is important to move towards to the development of market- based prices for electricity. Therefore it is expected an end of subsidization in fossile power sources and calculating the environmental contamination caused by fossile sources and nuclear power in energy prices.

Allikas: OECD ja Rahvusvaheline Energiaagentuur (2011) http://www.oecd.org/document/57/0,3746,en_2649_37465_45233017_1_1_1_37465,00.html

Subsidization of Energies Estonia

Subsidium of renewable sources contains on the base of EITS ?? The grant for sustainable sources 120 Mlj eur from fossile subsides is made up by a CO2 quota, 150 Mlj eur oil shale opportunity costs, in addition financial support for biomass burning in Narva kettles and grant for efficient cogeneration

Allikas: Elering http://elering.ee/taastuvenergia-toetus-2/ , Eleringi juhi Taavi Veskimgi hinnang http://www.taaviveskimagi.ee/

Grants for renewable energy

Investment grant, which helps to brng the new sustainable technologies to the market, cause the lower costs for technology through the increased extension, reduce the impact of energetics to the environment, increase the confidence in supply Grant for renewable energy (Feed-in Tariff) guarantees to the producer the prices for electricity or fixed grants during 10-20 years in addition to electricity price applied on the market. (EE-s both up to 2010). In 23 Member States in service.

Taastuvenergia toetuste min mr 04/2010, EUR/kWh

0.6 0.5 0.4 0.3 0.2 0.1 0 Bulgaria Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden United Kingdom Windpower 'On-shore' Wind power 'Off-shore' Solar PV Biomass Hydro

In the neighbouring countries the obligation to purchase is used. Is in use in Latvia, Lithuania and Finland. Fixed grant is used in Estonia and the obligation to buy green certificates in Sweden. There are differentiated refunds which vary in payments duration and there are differences in reference system. i. e. Additional investment aids, available payment facilities, compensation of power network costs, taxation of fossile sources etc.

Grant for renewable energy fixed by law for electricity market 59 prescribes the right for the renewable energy producer to get support from main power network supplier: For electricity produced from renewable sources 0,0537 EUR per kWh For electricity produced from biomass in cogeneration regime 0,0537 EUR per kWh

On an efficient cogeneration regime from fossil sources i.e. waste, peat or oil shale gas (heating gas) 0,032 EUR per kWh Over 20% of total grants are paid for burning oil shale and biomass together in Eesti Energia Balti EJ (Power Station) 11 cogeneration blocks. The efficiency of cogeneration a block in the Baltic Electric Power Station is ca 40%, which is approximately two times less compared to new CHP stations. From the same wood amount could be produced twice as much and even more energy or to produce the same amount of energy with twice as less wood.

 By the end of 2020 according to the National Renewable Energy Action Plans Estonia will need 727 Mwel renewable powers. According to the law for electricity market in 59 the support for wind energy is reduced to 600 GWh (ca 250 MW). This limit will be reached by 2012. With grants for sea wind parks, biogas and solar power have not accompanying investments. There are also problems in the case of small biomass CHP-s. Discussion about reorientation of the grant system in order to accompany alternative monetary resources for new required powers by 2020 for obligatory renewable energy purposes. By existing powers forms EREA an opinion, that the grants cannot be changed for the legal certainty. Also there must be found some other sources for refunding besides the bills of electricity comsumers, e.g. The EU CO2 waste trade (ETS) auction incomes, the EU structural funds or the flexible trade regulations of renewable energy directive. 1

Section II Bioenergy Production and Use

Issued by the Estonian Ministry of Agriculture 2005

1. Resources used for electricity production in 2005 Oil shale - 91%

Natural gas - 5% Oil shale gas - 2% Wind and water - 0,8% Peat - 0,1% Biomass - 0,2%

Growing of energy crops 2007

Wood waste - 20% Oil shale - 14% Oil shale oil - 8% Other fuels - 8%

Original PowerPoint written by: Estonian Renewable Energy Association Rene Tammist www.taastuvenergeetika.ee, 10.11.2011

 Peat - 3% Fuel oil and diesel fuel - 4%

Bricks and Pellets

Fuel briquette, pellets, quarter wood - 1% Natural gas - 42% Osier/willow - 1 ha Rape - 11 400 ha Oat - 75 ha Reed - 110 ha

Territorial scale according to land type

Swamps and wetlands - 5% Grassland - 7% Arable land - 23% Forest - 50% Scrubland - 2% Internal water bodies - 2% Built-up area - 4% Other - 4% Estimated 2,27 Mlj Ha are covered with forest, partially with wooded arable land. At present arearelated aids are paid for ca 850 000 Ha arable land. In 2004 were declared 1,2 Mlj Ha arable lands in total.

Main arable crops production in 2005

Arable crop - area - harvest productivity Rye (Winter) wheat Oat

 Barley Legume vegetables Rape

2. Developing of biomass and bio energy

Implementation of 2007-2013 development plan for promotion the usage of biomass and bio energy Grants for energy materials Buying-up renewable energy Bioenergy investment grants in both rural development plan and in operational program in physical and social environment development. Exemption from excise duty for transport bio fuel

Bio-energy in current and its future goals, 2005-2013

Combined heat and power - 0,2% / 3% Heat produced from renewable resources for district heating - 21% / 33% Proportion of bio fuels in production of transport fuels - 0% / 6%

Over 10 000 TJ heat per year is produced in wood boiler plants

Big pellet manufacturers Production of bio ethanol, bio diesel and bio gas in current and in future Existing bio diesel production Planned bio diesel production Existing bio gas production Planned bio ethanol production Planned bio gas production

Primary energy supply in 2005

Oil shale - 59% Gas - 15% Wood and peat - 12% Liquid fuel - 14%

Final consumption of energy resources in 2005 114 PJ in total

Wood and peat - 14,9% Liquid fuel - 37,2% Gas - 4,5% Electricity 21,7% Heat - 32,2% Coal - 1,1% Oil shale - 2,3%

Energy final consumption in 2005 in total 114 PJ

Industry - 25,9% Agriculture - 4,2% Transport - 22,4% Institutions - 14,8% Residential consumption - 46,7% 2

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