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Estonia is making significant strides in transforming its energy sector with a strong focus on renewable energy, emission reduction, and even exploring nuclear power as a viable energy source. Below are some of the latest developments shaping Estonia’s energy landscape.
Offshore Wind Energy Developments
In a move to accelerate the development of offshore wind farms, Estonia has introduced a new legal framework that simplifies the permitting process for developers. Under the recent amendments, a single consolidated superficies license now covers what previously required three separate permits: the building permit, water permit, and superficies license. This streamlined process is a key component of Estonia’s strategy to increase the share of renewable energy in its energy mix, aligning with the Energy Sector Organisation Act’s mandate that 65% of the country’s energy consumption must come from renewable sources by 2030.
Developers with ongoing projects have the flexibility to choose between the new consolidated licensing system or continue under the previous three-license procedure. This flexibility aims to cater to different project needs while promoting faster and more efficient development of offshore wind farms.
Award of Offshore Wind Areas Near Saaremaa Island
In a significant milestone for Estonia’s offshore wind energy sector, two offshore wind areas near Saaremaa Island, with a total capacity of approximately 2,400 MW, have been awarded to the Norwegian company Deep Wind Offshore AS. This award marks a crucial step towards enhancing Estonia’s renewable energy capacity and contributes to the country’s ambitious 2030 renewable energy targets.
Energy ESG: Climate Act and Emission Reduction Targets
In August 2024, Estonia unveiled a draft Climate Act, signaling a strong commitment to reducing greenhouse gas emissions across key sectors such as energy, transport, and buildings. The draft law sets ambitious targets for emission reductions by 2030, 2035, and 2040, aligning Estonia with broader European climate goals and legal obligations set by the Estonian Supreme Court and the European Court of Human Rights.
The implementation of the Climate Act is expected to require investments exceeding EUR 14 billion, with a significant portion of this burden falling on the private sector. Key areas of investment will include renewable energy production and comprehensive building renovations aimed at improving energy efficiency. The act underscores Estonia’s dedication to sustainable development and its role in global efforts to combat climate change.
Nuclear Energy: Exploring New Frontiers
As part of its broader strategy to diversify energy sources and enhance energy security, Estonia is considering the development of nuclear power. The Estonian Parliament is currently debating the potential for state support in developing nuclear power plants, with particular focus on a project proposed by Fermi Energia. The company is planning to construct a 300 MW nuclear power plant, which would be a significant addition to Estonia’s energy infrastructure.
The discussion around nuclear energy reflects Estonia’s proactive approach to exploring all viable options for meeting its future energy needs, particularly as the country seeks to reduce its reliance on fossil fuels and increase its share of low-carbon energy sources.
Offshore Wind Permitting Reform in Estonia
Estonia is simplifying its offshore wind farm permitting process to encourage faster development and investment in renewable energy. The new reform consolidates the building, water, and superficies permits into a single Superficies License, streamlining the process for developers.
This new system is designed to reduce administrative hurdles and accelerate the establishment of offshore wind farms. Developers with ongoing projects have the option to continue under the existing three-permit system or switch to the new, more efficient process. However, they needed to submit their applications by 1 August 2024 if they wished to take advantage of the new Superficies License.
Increasing the Energy Efficiency of Buildings – the Revised Energy Efficiency Directive
The revised Energy Efficiency Directive has been finally adopted in the European Union. It provides a framework for Member States to reduce emissions and energy use in buildings, from homes and workplaces to schools, hospitals and other public buildings.
The directive is also referred to as the ‘Forced Renovation Directive’ because it puts pressure on buildings to renovate buildings in an accelerated manner.
European Union has expressly stated that increasing the energy efficiency of buildings is key to saving energy and achieving a zero-emission and fully decarbonised building stock by 2050.
