5. Electricity

Key data

(2018 provisional)

Total electricity generation: 12.3 TWh, +16.3% since 2008

Electricity generation mix: oil shale 75.9%, bioenergy and waste 11.2%, coal and peat 6.2%, wind 5.2%, oil 1.0%, natural gas 0.5%, hydro 0.1%

Electricity net exports: 1.9 TWh (imports 3.1 TWh, exports 4.9 TWh)

Installed capacity (2017): 2.53 GW

Electricity consumption (2017): 7.7 TWh (commercial 38.8%, industry 29.0%, residential 25.1%, other energy 6.5%, transport 0.6%)

Exchange rate (2017): EUR 1 = USD 1.13

Overview

Oil shale is by far the most important energy source in electricity generation in Estonia. In 2018, the share of oil shale in electricity generation was 76% (Figure 5.1). However, the share has been gradually decreasing due to the continuous growth of renewables over the last decade. According to the National Development Plan of the Energy Sector until 2030 (MEAC, 2017), Estonia has set a target of 50% renewable electricity in domestic final electricity consumption by 2030. The government considers increasing the target to 80% if the right conditions are met.

Estonia has taken significant steps to integrate its electricitynetwork with the Nordic region and Europe, including joining Nordpool in 2013 and participating in the European Market Coupling (PCR) since its launch in February 2014. Interconnections with Finland, reinforced in 2014 with EstLink 2, and Latvia, soon to be further expanded with a third interconnection, have allowed Estonia to trade electricity and serve as a transit country for electricity flowing from the north to the south. Estonia seeks to further increase its security of electricity supply by desynchronising from the Russian Integrated Energy system, and synchronising with the synchronous grid of continental Europe, by 2025.

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ENERGY SECURITY