The structure of the National energy production and demand by wzi17160

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The structure of the National energy production and demand
                     sectors in Estonia

                            Report
                     Partly financed by the EU.
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1.     Administration, Legislation, Regulation bodies

The objectives of the Estonian Ministry of Economic Affairs and Communications is to
create overall conditions for the growth of the competitiveness of the Estonian economy
and its balanced and vital development through the drafting and implementing Estonian
economic policy and evaluating its outcomes.


The Ministry of Economic Affairs and Communications elaborates and implements the
state's economic policy and economic development plans in the following fields:
industry, trade, energy, housing, building, transport (including transport infrastructure,
carriage, transit, logistics and public transport), traffic management (including traffic on
railways, highways, streets, waterways and airways), increasing road safety and
reducing environmental hazardousness of vehicles; informatics, telecommunications,
postal service and tourism; co-ordinating the development of state information systems;
research and development and innovation, metrology, standardisation, certification,
accreditation, licensing, registers, industrial property protection, competition
surveillance, consumer protection, export promotion and trade safeguards; measures
regional development and investment, related administration of minimum stocks of
liquid fuel and drafting the respective legislation bills.

In terms of energy resources, Estonia is a unique country whose energy production
depends primarily on the use of oil-shale. Smaller hydroelectric power plants and wind
parks on the coast of West Estonia produce renewable energy.
From the state’s perspective, energy production from domestic raw material is an
important factor for guaranteeing the security of supply. In addition, the use of oil-shale
will reduce potential risks that the instability of the world’s fuel market might have on the
Estonian economy.
As the use of renewable energy is gaining ground all over the world, the Estonian
energy sector will have to make huge investments in environment-friendlier technology
in the coming years. Oil-shale is a mineral resource also found in other countries of the
world. Thus, Estonia’s unique experience in the production of oil-shale based energy
and various chemicals might find use in many states in the future.
Legislation.
                                              3

Energy sector is regulated by other sub sectors according to Treaty Establishing the
European Community, so the part of energy sector is regulated with the legislation of
other sectors.The main legal acts regulating the Estonian energy market: are;
   1) Electricity Market Act – this act regulates generation, transmission, sale,
      export, import and transit of electricity, also the economic and technical
      management of the power system. The Act prescribes the principles for the
      operation of the electricity market based on the need to ensure an effective
      supply of electricity at reasonable prices and meeting environmental
      requirements and the needs of customers, and on the balanced, environmentally
      clean and long-term use of energy sources.
The sub acts validated by Electricity Market Act:·
     Regulation of the Government of the Republic „Network Code“;·
     Regulation of the Minister of Economic Affairs and Communications „Quality
   Requirements for Network Services“;·
     Regulation of the Minister of Economic Affairs and Communications „Statistical
   Data Submitted by the Entrepreneurs, who Sell Electrical Energy to the Industrial
   Consumers“;·
     Regulation of the Minister of Economic Affairs and Communications „Guide for
   Determination the Amount and Cost of the Unauthorised Electrical Energy
   Consumption Regulation of the Minister of Economical Affairs and Communications
   „Conditions for Determination the Proportions of the Electricity Produced from
   Renewable Energy Sources and Procedures for Determination the Combined
   Electricity Production from Renewable and Other Energy Sources“.Electricity Market
   Act with its sub acts harmonizes the following:·
     European Union Council Directive 96/92/EEC concerning common rules for the
   internal market in electricity: since July 15th 2003 the Directive 2003/54/EC of the
   European Parliament and Council regulates the internal market in electricity);·
     Council Directive 90/547/EEC on the transit of electricity through transmission
   grids;·
     Commission Directive 98/75/EC updates the list of entities covered by Directive
   90/547/EEC on the transit of electricity through transmission grids;·
     Council Directive 90/377/EEC concerning a Community procedure to improve the
   transparency of gas and electricity prices charged to industrial end-users;·
     Directive 2001/77/EC of the European Parliament and of the Council on the
   promotion of electricity produced from renewable energy sources in the internal
   market for electricity.
   2) Natural Gas Act – this act regulates activities related to the import, distribution
      and sale of natural gas by way of gas networks, and connection to networks.
   The sub act is enacted by Natural Gas Act:·
     Regulation of the Minister of Economic Affairs and Communications „The
   Procedures for determination the amount and cost of the Unauthorisely Consumed
   Gas“.Natural Gas Act with mentioned sub acts harmonizes the following European
   Union legislation:·
     Council Directive 98/30/EEC on common rules for establishment of an internal
   market for natural gas (since July 15th 2003 Directive 2003/55/EC of the European
   Parliament and of the Council regulates internal market for natural gas);·
     Council Directive 91/296/EEC on the transit of natural gas through grids;·
     Commission Directive 95/49/EEC updates the list of entities covered by Directive
                                           4

91/296/EEC on the transit of natural gas through grids;·
  Council Directive 90/377/EEC concerning a Community procedure to improve the
transparency of gas and electricity prices charged to industrial end-users.
3) Minimum Stocks of Liquid Fuel Act – this act provides the bases for the
   establishment, maintenance and administration of compulsory minimum stocks
   of liquid fuel.
The following Acts based on The Minimum Stocks of Liquid Fuel Act have been
validated:·
  Regulation of the Minister of Economic Affairs „The Form of the Statistical Abstract
of the Liquid Fuel Minimum Stocks“;·
  Regulation of the Government of the Republic „The Procedures for Using the
Minimum Stocks of Liquid Fuels“.Minimum Stocks of Liquid Fuel Act with sub acts
harmonizes the following European Union acts:·
  Council Directive 68/414/EEC imposes an obligation on Member States of the
EEC to maintain minimum stocks of crude oil and/or petroleum products; ·
  Council Directive 98/93/EC repealing the Directive 68/414/EEC, imposes an
obligation on Member States of the EEC to maintain minimum stocks of crude oil
and/or petroleum products·
  Council Directive 73/238/EEC on measures to mitigate the effects of difficulties in
the supply of crude oil and petroleum products.
4) Liquid Fuel Act – the act provides the basis and procedure for liquid fuel
   treatment, the responsibility for breaking the present law and the arrangement of
   state supervision performance. The fuel market is not regulated on the EU level.
   The directives are related to environmental requirements for the content of
   certain substances (sulphur, lead, benzene etc.). There is no information about
   the separate act that regulates the fuel markets in other countries. Also the
   conformity attestation of fuel is not obligatory in the way described in the present
   act.
There are validated the following legislations based on Liquid Fuel Act:·
  Regulation no 95 of the Minister of Economic Affairs and Communications 9 June
2003 „List of the Fuels that Need to be Registered for Treatment“;·
  Regulation no 97 of the Minister of Economic Affairs and Communications 11 June
2003 „The Requirements for Liquid Fuels“; ·
  Regulation no 98 of the Minister of Economic Affairs and Communications 11 June
2003 „The Form of the Corresponding Certificate of Liquid Fuels and the Guide for
Completing “;·
  Regulation no 69 of the Minister of Finance 27 May 2003 „The Form of the Fuel
Treatment Report and the Procedures for Completing and Submitting“.
5) Energy Efficiency of Equipment Act – this act regulates the requirements for
   the energy efficiency and energy labelling of certain types of household
   appliances, heating equipment and installations and the bases of and procedure
   for their conformity assessment and attestation in order to increase the efficiency
   of the consumption of energy and other essential resources.
The following regulations based on Energy Efficiency of Equipment Act have been
validated:·
  Regulation of the Minister of Economic Affairs „Energy Labelling, Specification,
Technical Documentation and Period of Preservation Requirements for Household
Refrigerators, Freezers and for their Combinations“, based on Directives 94/2/EC
                                               5

    and 2003/66/EC;·
      Regulation of the Minister of Economic Affairs „Requirements for Energy Efficiency
    and Technical Documentation and the Procedures for Conformity Attestation for
    Household Refrigerators, Freezers and their Combinations“, based on Directive
    96/57/EC;·
      Regulation of the Minister of Economic Affairs „Energy Labelling, Specification,
    Technical Documentation and Period of Preservation Requirements for Household
    Combined Washer-dryers“, based on Directive 96/60/EC;·
      Regulation of the Minister of Economic Affairs „Energy Labelling, Specification,
    Technical Documentation and Period of Preservation Requirements for Household
    Washing Machines“, based on Directive 95/12/EC;·
      Regulation of the Minister of Economic Affairs „Energy Labelling, Specification,
    Technical Documentation and Period of Preservation Requirements for
    Dishwashers“, based on Directive 97/17/EC;·
      Regulation of the Minister of Economic Affairs „Energy Labelling, Specification,
    Technical Documentation and Period of Preservation Requirements for Household
    Electric Tumble Dryers“, based on Directive 95/13/EC; ·
      Regulation of the Minister of Economic Affairs „Energy Labelling, Specification,
    Technical Documentation and Period of Preservation Requirements for Household
    Electric Ovens“, based on Directive 2002/40/EC; ·
      Regulation of the Minister of Economic Affairs „Requirements for determination of
    Airborne Noise Emitted by Household Appliances“, based on Directive 86/594/EEC.·
      Regulation of the Minister of Economic Affairs „Efficiency, Labelling and Technical
    Documentation Requirements for Liquid and Gas Fuelled Hot Water Boilers and the
    Procedure for their Conformity Attestation“, based on Directives 92/42/EEC and
    93/68/EEC; ·
      Regulation of the Minister of Economic Affairs „Energy Efficiency and Technical
    Documentation Requirements for Ballasts for Fluorescent Lighting and Procedure
    for their Conformity Attestation“, based on Directive 2000/55/EC;·
      Regulation of the Minister of Economic Affairs „Energy Labelling, Specifications,
    Technical Documentation and Period of Preservation Requirements for Household
    Air-conditioners“, based on Directive 2002/31/EC.
    6) District Heating Act – this act regulates activities related to the production,
       distribution and sale of heat by way of district heating networks, and connection
       to the networks. The act provides the definition of the district heating area and
       gives to the council of rural municipality the right to validate the district heating
       areas on municipality’s territory. The district heating markets are not regulated on
       the EU level.
    The sub act is enacted according to the District Heating Act:·
      Regulation of the Minister of Economic Affairs and Communications „The
    Procedures for Determination the Amount and Cost of the Unauthorisely Consumed
    Heat “.

1.1 Administration, national level

•   Government authorities involved in the administration in energy sector, their role and
    tools to affect:
    The Estonian Energy Market Inspectorate (EMI) was established pursuant to the
    Energy Act on 22 January 1998. EMI is responsible for implementing the state
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    control, supervision of and monitoring the fuel and energy market, including the
    issuance of market licences and price control.
    The main competence of the EMI is to supervise the fuel and energy markets. Due
    to the current energy situation in Estonia the main tasks of the energy market
    regulator are likely to be connected to licensing and the supervision of power
    transmission, distribution and sales tariffs and the power generation prices of power
    plants with market dominating position.
    Principles for approval of the price limit of heat sale price are prepared by the
    Energy Market Inspectorate (hereinafter EMI) with the legislative basis provided by
    the District Heat Act (hereinafter DHA).
    According to subsection 9(1) of DHA, the following companies shall seek approval
    for the price limits of heat to be sold (hereinafter prices) by network area from EMI:
           •     heat companies whose annual sale of heat in their area of activity exceeds
                 50 000 MWh;
           •     heat companies belonging to a group if the total annual sale of heat by the
                 group to Estonian consumers not belonging to the group exceeds 50 000
                 MWh;
           •     heat companies generating district heating through the combined power
                 and heat generation process.
     Standard methodology for calculating electricity network charges (hereinafter
     methodology) is prepared by the Energy Market Inspectorate (hereinafter EMI) in
     accordance with subsection 72(4) of the Energy Market Act (hereinafter EMA)
     which is based on weighted average cost of capital.


     According to subsection 72 (1) of EMA, a network operator providing a network
     service shall collect the following charges:
     1) for becoming connected to the network (connection charge);
     2) for amending consumption or generation conditions (charge for amendment of
     conditions);
     3) for enabling a network connection to be used (charge for using a network
     connection);
     4) for the transmission of electricity (transmission charge);
     5) for extra services directly related to network services.
     The Energy Market Inspectorate on the basis of the Natural Gas Act has prepared
     the Principles for Approval of Natural Gas Prices.

•   Different national programmes –
Energy Efficiency Target Program and its implementation plan.
The Principe's are
       -       Support growth of economy
       -       Security of supply, optimal energy price
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         -   Decrease environmental impact from energy use and production side
         -   Energy end-users well-being and effective job surroundings
         -   Energy investments to the rural areas

and Energy effective targets are
    •   To keep change of energy use, generated by economical growth, at least two
         times lower than growth of GDP.
    •    On the period 2008 – 2012 decrease 8% CO2 emissions from 1990 level.
National funding for energy saving investments - Last three years state support to
energy saving investments in municipalities has been annually 173 000 EUR and for
energy planning (Energy master plan) activities 42 400 EUR.

All kind of loans are available for energy investment.
Foundation KREDEX
The objective of KredEx is implementing the Estonian housing development plan to
contribute to preserving the existing housing stock and to alleviate housing-related
financial problems.
KredEx's guarantees for housing loans are targeted at young families, young
professionals and tenants living in restituted buildings so that they can obtain a bank
loan for buying or renovating an apartment. Housing loan guarantees
Housing loan guarantees are designed for the purchase, construction or renovation of a
residence. Individuals belonging in one of the below target groups are eligible for a
guarantee.
•   Loan guarantee for young families
•   Loan guarantee for young specialists
•   Loan guarantee for tenants of restituted buildings
•   Loan guarantee for apartment buildings
•   Loan guarantee for apartment associations helps an apartment association take a
    loan for the renovation of an apartment building.
Housing grants
Aids are provided for the renovation of apartment buildings. KredEx offers the following
aids:
    • Grant for reconstruction of apartment buildings
             The grant targets apartment associations, housing associations or
             associations of apartment owners, and is designed for reconstructing the
             exterior structures and load-bearing structures of apartment buildings built
             before (including) 1990. The grant covers up to 10% of the cost of the work.
             The grant covers a maximum of 200 kroons per m² of the total area of the
             building.
             Reconstruction grant covers up to 10% of the cost of the work related to:
             1. the reconstruction of the main structures (exterior structures and load-
             bearing structures), and
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          2. renovation of the main structures:
             2.1 renovation of the roof material
             2.2 renovation of storm water sewerage
             2.3 replacement of doors and windows in public areas
             2.4 renovation of the foundation pavement
             2.5 renovation of the facade
             2.6 renovation of panel joints
             2.7 renovation of the storm lobby as a part of renovation of the facade
          3. reconstruction of electrical systems and gas installations
          4. renovation of electrical systems and gas installations
          incurred by apartment buildings built before (including) 1990, but not more
          than 200 kroons per m2 of the closed net area of the apartment building in
          2003-2008.
    • Grant for technical inspection of apartment buildings


•   Relations to international / trans-national cooperation (BASREC / Baltic 21 energy
    sector/ other) – Ministry of Economic Affairs and Communication is taking part on
    BASREC activities.


1.2 Administration, regional and municipal level


•  Regional and local authorities involved in the administration in energy sector and
   their tools to affect:
Local municipalities should regulate heat prices if the heat companies annual sale of
heat in their area of activity are below 50 000 MWh;

1.3 Most important energy sources in Estonia
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         ENERGIA TARBIMINE / ENERGY CONSUMPTION
                                        AS ENPRIMA ESTIVO

                          ENERGIA SISEMAINE TARBIMINE
                        Cross Inland Consumption of Energy*
                                                                                                          (PJ)

                                                            1999   2000      2001       2002      2003
Muundamiseks teisteks energialiikideks
                                                         153,9 159,0 160,2 157,8 177,0
For conversion to other forms of energy
Tarbitud tooraineks
                                                            7,2      7,7       8,1       3,9       4,9
Consumed as raw material
Lõpptarbimine / Final consumption                           95,6    96,2     102,0 106,9 109,7
Muu / Other                                                 8,7      7,5       7,6       3,9       8,9
Kokku / Total                                            265,4 270,4 277,9 275,8 300,5
sh. elektrienergia / incl. Electricity                      17,2    17,9      18,5      19,0      20,1
sh. soojus / incl. Heat                                     30,5    29,3      31,2      31,5      30,8
* Sisaldab muundatud energia tootmiseks tarbitud energiat / energy consumed for production of converted energy
is taken into account.
Allikas: Statistikaamet / Source: Statistical Office of Estonia



         PJ
              350

              300

              250

              200

              150

              100

               50

                0
                       1999            2000           2001           2002            2003

              Muu / Other
              Lõpptarbimine / Final consumption
              Tarbitud tooraineks / Consumed as raw material
              Muundamiseks teisteks energialiikideks / For conversion to other forms of energy
                                                               10

            ENERGIA LÕPPTARBIMINE ENERGIAKANDJATE KAUPA
               Final Energy Consumption by Carrier Categories
                                                                                                                (PJ)

                                            1997       1998         1999     2000        2001       2002     2003
Kivisüsi ja koks / Coal and coke              1,3        1,1        1,2           1,8     2,6        1,2      0,8
Põlevkivi / Oil shale                         2,2        3,6        2,3           1,9     1,8        1,1      1,4
Kütteturvas ja –puit / Peat and
                                             19,8       15,2        14,7      14,3        14,4       14,4    16,8
firewood*
Vedelkütus/ Liquid fuels**                   30,5       29,5        23,7      20,7        28,4       33,7    35,3
Gaas / Gas ***                                3,9        4,2        3,1           3,3     3,6        4,0      4,6
Elektrienergia / Electricity                 17,7       18,3        17,2      17,9        18,5       19,0    20,1
Soojus / Heat                                36,6       33,6        30,5      29,3        31,2       31,5    30,8
Kokku / Total                               112,0      105,5        92,7      89,2       100,5      104,9    109,8
 * Kaasaarvatud turbabrikett, puiduhake, ja –jäätmed/ Including peat briquette, wood chips and wood
 waste.
 ** Raske ja kerge kütteõli, põlevkiviõli, autobensiin, diislikütus, lennukipetrool ja –bensiin/ Heavy fuel oil,
 shale oil and light fuel oil, motor gasoline.
 *** Maa-, vedel-, põlevkivigaas/ Natural gas, liquefied gas and oil shale gas.
 Allikas: Statistikaamet / Source: Statistical Office of Estonia


                                                         2003


                                                     Põlevkivi /
                                         Gaas /      Oil shale      Kivisüsi ja koks /
                  Kütteturvas ja -
                                          Gas           1%           Coal and coke            Vedelkütus /
                  puit/ Peat and
                                          5%                               1%                 Liquid fuels
                     firewood*
                        15%                                                                      32%




                     Elektri-energia /
                                                                                   Soojus /
                        Electricity
                                                                                    Heat
                           18%
                                                                                    28%
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                  ENERGIA LÕPPTARBIMINE MAJANDUSHARUDES
                   Final Energy Consumption by Sector Categories
                                                                                                            (PJ)

                                                   1997 1998 1999 2000 2001 2002 2003
Tööstus / Industry                                  27,2 26,0 19,1 20,7 22,1 21,1 24,5
Põllumajandus / Agriculture                          3,3  3,5  2,3  2,5  2,3  4,4  4,6
Transport / Transport                               14,5          16,1   14,0   14,3   16,4    19,2      17,7
Äri ja avalik teenindus
                                                     7,9          8,2     9,6   10,0   11,2    12,9      13,2
Commercial and public services
Kodumajapidamine
                                                    59,1          51,7   50,3   48,7   50,0    50,0      49,6
Households
KOKKU / TOTAL                                     111,9 105,4            95,2   96,2   102,0 107,6 109,6
Allikas: Statistikaamet / Source: Statistical Office of Estonia


                                                              2003

                                     Äri ja avalik
                                     teenindus /
                                     Commercial
                                                                            Põllumajandu/
                                      and public
                                                                             Agriculture
               Transport /             services
                                                                                 4%
               Transport                 12%
                  16%




                                                                                            Kodumaja-
                 Tööstus /                                                                  pidamine /
                  Industry                                                                  Households
                    22%                                                                        46%
           National Energy Systems and organisational structures of the ESCOBALT partners




             KÜTUSTE TARBIMINE / CONSUMPTION OF FUELS
                                                      AS ENPRIMA ESTIVO

                    KÜTUSTE KOGUTARBIMINE MAJANDUSHARUTI
                  Total Consumption of Fuels by Branches of Economy

                                                                      2003




                                                                                                                                                  Tarbitud kokku
                                                                                  Põllumajandus




                                                                                                                                 majapidamine
                                                                                                               Äri- ja avalik
                                                                  Energeetika




                                                                                                                                                    (kogused)
                                                                                                                teenindus
                                                                                                   Transport
                                                  Tööstus




                                                                                                                                    Kodu-
  Kivisüsi ja koks, 1000 t
                                                 12               4               1                0             9               19               55
  Coal and coke, 1000 t
  Põlevkivi, 1000 t
                                                163          15311                0                0             0                 0             15474
  Oil shale, 1000 t
  Turvas, 1000 t
                                                 16           405                 0                1             7               16              445
  Peat, 1000 t
  Puit, 1000 tm
                                                889           518                 27               2           88                2006            3530
  Wood, 1000 m3
  Maagaas, mln m3
  Natural gas, million m3
                                                265           427                 9                2           98                47              848

  Vedelgaas, 1000 t
  Liquefied gas, 1000 t
                                                  2               0               0                0             0                 4                6

  Raske kütteõli, 1000 t
                                                 10               4               0               70           16                  0             100
  Heavy fuel oil, 1000 t
  Põlevkiviõli, 1000 t
                                                 41           73                  1                0             6                 0             121
  Shale oil, 1000 t
  Kerge kütteõli ja diisllikütus,
  1000 t
                                                104           26                  86              264          57                55              591
  Light fuel oil and diesel oil
  1000 t
  Autobensiin, 1000 t
                                                 34               3               7                5           46                211             306
  Motor gasoline, 1000 t
                                                                                                               Commercial and
                                                                                                               public services
                                                                  Energy supply




                                                                                                                                    Households
                                                                                  Agriculture




                                                                                                                                                  Total con-
                                                                                                                                                  sumption
                                                                                                   Transport
                                                  Industry




Allikas: Statistikaamet / Source: Statistical Office of Estonia
          National Energy Systems and organisational structures of the ESCOBALT partners




                                              KÜTUSTE SISEMAINE TARBIMINE*
                                              Gross Inland Consumption of Fuels


                                                                        2003




                                                                                                               Light fuel oil and
                                                                                                               Kerge kütteõli ja
            Kivisüsi ja koks




                                                                                                                                    Motor gasoline
            Coal and coke




                                                                               Raske kütteõli
                                                                               Heavy fuel oil




                                                                                                                                     Autobensiin
                                                                                                Põlevkiviõli



                                                                                                                  diislikütus
                                  Põlevkivi
                                  Oil shale




                                                                                                 Shale oil
                                               Turvas



                                                           Wood




                                                                                                                     diesel
                                                                      Gaas
                                                Peat




                                                                      Gas
                                                           Puit




  PJ        1,2                 136,4          4,2         24,0      27,8      1,2              4,8               23,1              13,2
* Kütuse sisemaine tarbimine = tarbitud muundamiseks teisteks energialiikideks + energiasektori tarve + tarbitud
tooraineks + lõpptarbimine / Gross inland consumption of fuels = consumption for conversion to other forms of energy +
consumption of energy sector + consumption for non-energy purposes + final consumption.
Allikas: Statistikaamet / Source: Statistical Office of Estonia


                                                        Kerge kütteõli ja
                                                           diiselkütus/       Autobensiin /
                                                        Light fuel oil and    Motor gasoline                     Kivisüsi ja koks
                                Põlevkiviõli /                Diesel               6%                            / Coal and coke
                                 Shale oil                    10,5%                                                   0,5%
                                   2,1%

                Raske kütteõli /
                 Heavy fuel oil
                    0,5%




                               Gaas / Gas
                                 12,9%
                                                                                                                        Põlevkivi / Oil
                                                                        Turvas / Peat                                       shale
                                                 Puit / Wood                2,3%                                           57,7%
                                                    7,5%


Problems.
Waste generation
Energy production is extremely wasteful, providing 73% of the total waste generation in
Estonia in 2003. Out of 18.4 million tons of wastes generated in 2003, 6.3 million tons was
oil-shale combustion ashes and 6.2 million tons was mining residuals. Compared to
previous year waste generation by Energy Sector was increasing by 21% due to increased
excavation and usage of oil shale.
       National Energy Systems and organisational structures of the ESCOBALT partners




Environment Protection
The draft version of Estonian National Environmental Strategy for 2010 and Long-term
National Development Plan for the Fuel and Energy Sector foresee:
     · to reduce negative environmental impact of energy sector, intensively usage of
     renewable energy and best available techniques
     · to reduce sulphur compounds by 35% for year 2005 and for 2010 by 40%
     comparing to year 1980
     · to guarantee that the total emission of sulphur dioxide will be below 25 thousand
     tonnes per year For year 2012
     · to guarantee that the emission rates of existing burning facilities will be in
     accordance with limits
     · to bring into accordance with requirements the emission of volatile organic
     compounds from gas stations and fuel terminals for year 2007
     · to decrease the sulphur content in motor gasoline and diesel to the level under 50
     mg/kg for year 2005 and under 10 mg/kg for year 2009
     · to achieve 5.1 % of gross electricity consumption (net consumption + losses) would
     covered by renewable energy sources for year 2010.
     · To bring the share of bio-fuel in motor gasoline and diesel consumption to level of
     2% for year 2005 and 5.75% for year 2010.


1.4 Future energy resources strategy

Overview of Fuel and Energy Sector in Estonia (from Long-term Public Fuel and Energy
Sector Development Plan until 2015)
     1.1. General Organisation of Fuel and Energy Sector
The state organises the Estonian fuel and energy market analogously with other EU
Member States and the fuel and energy supply, as a whole, meets the essential needs of
consumers. In order to implement the strategic objectives and principles of the fuel and
energy sector, the state may use the following measures:
§    regulative or legislative measures (including price formation mechanisms),
§    the tax system,
§    investment support,
§    national programmes       (including   of   education,   research    and     technology
development).
Regulation which affects power engineering is prepared in several ministries. The Ministry
of Economic Affairs and Communications is responsible for providing for the regulation of
and technical requirements for the energy market. Regulations which significantly affect
power engineering are also developed by the Ministry of the Environment (use of mineral
resources, pollution charges, environmental requirements etc) and by the Minister of
        National Energy Systems and organisational structures of the ESCOBALT partners




Finance (excise duties, principles of value added tax, use of state budget funds etc). The
Energy Market Inspectorate exercises supervision over the energy market. Supervision
over the liquid fuel market is also exercised by the Tax and Customs Board. The Technical
Inspectorate checks the technical condition of the equipment used. The Consumer
Protection Board represents the interests of consumers in relations with energy
undertakings.
The main regulation of the fuel and energy sector is provided for in the following Acts:
1. the Electricity Market Act (RT I 2003, 25, 153; 2004, 18, 131; 30, 208),
2. the Natural Gas Act (RT I 2003, 21, 128; 2004, 18,131),
3. the Liquid Fuel Act (RT I 2003, 21, 127; 88, 591; 2004, 18, 131, 53, 365),
4. the District Heating Act (RT I 2003, 25, 154; 2004, 18, 131),
5. the Energy Efficiency of Equipment Act (RT I 2003, 78, 525).


     1.2. Energy Consumption
The efficiency of primary energy consumption (the ratio of the final energy consumption to
the primary energy consumed) in Estonia is approximately 51 per cent which is a relatively
low indicator. This is mainly caused by the facts that there are no large hydro-electric
stations and more than 90 per cent of the electric energy is produced in condensation
power stations the efficiency of which is about 30 per cent. Losses in a power or district
heating network and the export of conversed energy (electricity, shale oil and oil shale
coke, peat briquette, wood chips) also reduce the efficiency indicator of the energy sector.
The volume of energy demand in the gross domestic product (GDP) (the ratio of the
primary energy supply to the GDP) has significantly decreased in Estonia. According to the
International Energy Agency (IEA), the sustainable development indicator of Estonia is still
lower than generally in the EU or in the neighbouring state of Finland with a climate
comparable to the climate of Estonia – in 2000, 2.1 and 1.5 times respectively (the parity
of the buying power is taken into account upon calculation of the GDP). Particularly, this is
caused by the low level of our GDP. At the same time, the energy conservation potential of
Estonia is deemed to be quite high, e.g. in Tallinn 25–30 per cent more heat is used per
one m3 of building volume than in Helsinki.


     1.3. Energy Resources
The proportion of domestic energy resources in the Estonian energy resources and in the
balance of primary energy is high and mostly based on oil shale. It offers a considerable
strategic independence as regards electricity supply (the proportion of imported energy
sources is ~1/3 in Estonia and, on average, ~ 2/3 in EU Member States). The main
positive sides of the large-scale use of oil shale are the security of supply for the state
energy sector and the relative price independence from the world market. The negative
side is the great environmental damage arising from the mining and use of oil shale and
the low calorific value of oil shale. The export volume of electric energy significantly affects
the proportion of oil shale in the balance of primary energy – the greater the export of
electricity, the greater the proportion of oil shale in the balance of primary energy.
       National Energy Systems and organisational structures of the ESCOBALT partners




In 2002, the supplies of primary energy were 193.8 PJ, oil shale formed 61 per cent and
wood and peat together 12 per cent of the supplies. The proportion of renewable energy
sources was approximately 11 per cent, of which wood fuels formed the main part, and the
rest of the sources formed 0.1 per cent of the sources. 43 per cent of the primary energy
was used for the production of electricity and 24 per cent of the primary energy was used
for the production of heat.


     1.3.1. Fossil Energy Sources
Oil shale. Oil shale is the most important mineral resource of Estonia. During the financial
year 2001/2002, Eesti Põlevkivi sold 12.36 mln t oil shale and 81 per cent of the oil shale
was supplied to the Narva power stations. Ahtme and Kohtla-Järve power stations also
produce electric energy and heat from oil shale. In addition to combustion in power
stations, oil shale is also used for the production of oil and in chemical industry (in 2002,
2.5 mln t oil shale was used in oil shale chemical industry).
As oil shale is the strategic energy source of Estonia, economic and environmental and
also social policy and security aspects must be taken into account when its use (power
industry and chemical industry) and volumes are planned. During the period under review,
the proportion of oil shale in the balance of the primary energy of Estonia decreases yet
remains, however, the main energy resource. At the moment, the conclusions of the oil
shale resource adequacy assessment are the following.
§    At the current volume of consumption (12 mln t/a), the active supplies of the
operating mines and quarries will last until 2025 . If the volume of consumption does not
decrease, in approximately 20 years new mines must be opened and, if the volume of
consumption increases, new mines must be opened already sooner.
§ At the current volume of consumption, the total active supplies of oil shale will last for
60 years calculated on the basis of the technical-economic conditions of power stations….

     2. Strategic Objectives and Principles of Fuel and Energy Sector in Estonia
The main objective of the Estonian fuel and energy sector is to ensure fuel and energy
supplies with the required quality and at optimal prices. The strategic objectives and
policies in individual fields of the energy sector are directed at achieving the main
objective.
The strategic objectives of the Estonian fuel and energy sector are to:
§    ensure fuel and energy supply with the required quality and at optimal prices;
§   ensure the existence of local generating power to cover the domestic electricity
consumption needs and the supply of liquid fuel in compliance with law;
§   ensure that by 2010 renewable electricity forms 5.1 per cent of the gross
consumption;
§     ensure that by 2020 electricity produced in combined heat and power production
stations forms 20 per cent of the gross consumption;
§    ensure that the power network is completely modernised in approximately every thirty
years;
        National Energy Systems and organisational structures of the ESCOBALT partners




§   ensure that, in the open market conditions, the competitiveness of the domestic
market of oil shale production is preserved and its efficiency is increased, and apply
modern technologies which reduce harmful environmental impact;
§    ensure compliance with the environmental requirements established by the state;
§    increase the efficiency of the energy consumption in the heat, energy and fuel sector;
§    until 2010, maintain the volume of primary energy consumption at the level of 2003;
§    develop measures which enable the use of renewable liquid fuels, particularly
biodiesel, in the transport sector;
§     ensure that modern know-how and specialists are constantly available in all fields of
the fuel and energy sector to promote technology development within the state and enable
transfer of the modern energy technology;
§     establish preconditions for the establishment of connections with the energy systems
of the Nordic countries and Central European countries.
Fulfilment of the strategic objectives is based on the following principles:
§    To enhance cooperation between energy enterprises, the public sector and research
and educational institutions.
§     Formation of the state fuel policy is based on the need to increase the importance of
domestic renewable fuels in the energy balance, at the same time taking account of the
principle of economic rationality and security of supply.
§    Upon construction of new power stations, the principle of distributed production and
combined heat and power production is preferred and also the optimal use of the existent
heat networks is ensured.
§    In every county government, a person is appointed whose function is to analyse the
development of the fuel and energy sector of the corresponding county, to ensure the
implementation of national objectives on the county level and administer the information
and activities of local governments on the fuel and energy sector.
§   Upon setting different environmental objectives related to power engineering and
upon becoming a party to international agreements, to analyse the cost of the obligations
assumed.
§     Upon implementation of investment support and operating aid, particularly projects
important from the regional aspect or for environmental protection purposes are preferred.
In order to ensure the compliance with and implementation of the strategic objectives in
the fuel and energy sector, the Minister of Economic Affairs and Communications submits
a corresponding report on the government level in every two years. The first report will be
made in the beginning of 2006.

2. Associations

Inform the associations as follows:

2.1 Production side,
       National Energy Systems and organisational structures of the ESCOBALT partners




Estonian Heat Pump Union
EHPU arranged several seminars and conferences for promotion of heat pumps as a new
way of heating.


2.1 Associations, production side

There are few existing groups in the energy area in Estonia, which can be utilized in the
project. The groups are built up mainly based on different associations and their members.

In the production side companies are united to Estonian Heat and Power Association.
www.epha.ee
*The connections to European or other international associations, for example EPHA,
which are connected to European association.

EPHA-s field of activity comprises production, transmission, distribution and sales of
electricity and district heating and the design, implementation, operation, maintenance and
construction of networks and power plants.
Estonian Wind Power Association
EWPA was occupied mainly with promotion of wind energy in Estonia, examination of the
future wind park projects in Estonia and introduction of Estonian wind energy situation in
abroad. Also handbook about windmills environmental impact assessment was prepared.


2.2 Associations, demand side

…


3. Professional organizations

Organisations that work in energy field and are making R & D or technical support projects
(project management and coordination, public awareness, regional development etc.)

    REC Estonia, - Regional Energy Centres, Estonia
        From 1999 REC operating like non-profit organization and since we have made
       several training programs for LG-s and implement boiler conversation projects,
       made feasibility studies, business plans, energy plans, energy audits, local energy
       planning etc.
       There are three energy centres in Estonia located in Rakvere, Viljandi and Võru.

    ESHVE - The Estonian Society of Heating and Ventilation Engineers (ESHVE)

       The Estonian Society of Heating and Ventilation Engineers was founded in 1989,
       and as of today, has more than 120 individual members-highly qualifed engineers
       National Energy Systems and organisational structures of the ESCOBALT partners




      from the fields of design, installation, research and maintenance of heating,
      ventilation and air conditioning (HVAC) systems in Estonia.
      The ESHVE has close contacts with the Estonian Ministries and other authorities in
      the field of HVAC, proposing needed information and taking part in resolving
      specific technical topics to stimulate technological progress.
    Estonian Fund for Nature
      Co-operation with Eesti Energia continued to promote renewable energy under the
     trade mark “Green Energy”. In co-operation with print-office “Triip” energy and nature
     saving printing service rooting under trade mark “Green Printing” continued.
     Promoting of energy saving and renewable energy continued in media. The topics
     are represented via media agency “Green Gate”.


4. The main end user organizations

EMOL – Estonian Association of Rural Municipalities, www.emol.ee, Estonian Union
of Flat Owners Association, www.ekyl.ee.

5.Finanzing organizations
Enterprice Estonia, www.eas.ee
Environmental Investment Centre – www.kik.ee
KREDEX, www.kredex.ee


6. National and trans-national networking

            ACTION GROUP ON ENERGY SAVING – ESTONIA

FORMED:  JUNE 2005
MEMBERS:

1      Aare Vabamägi      Regional Energy Centres, expert

2      Anu Keskpaik       Estonian Power and Heat Association
                          Managing Director
3      Ülo Kask           Tallinn technical University, Faculty of Mechanical
                          Engineering: Department of Thermal Engineering,
                          Research Scientist
4      Peeter Muiste      Estonian Agricultural University; Institute of Forestry
                          and Rural Engineering, Professor, expert in
                          renewable energy
5      Merike Kuusmaa     Ministry of Economic Affairs and Communication,
                          Energy Department, Energy Efficiency and
         National Energy Systems and organisational structures of the ESCOBALT partners




                             Renewables Division; Executive Officer
6        Kalle Maandi        Tallinn City Government
                             City Planning Department, Chief Specialist
                             Tallinn City Government Energy Commission
7        Märt Ots            Estonian Energy Market Inspectorate,
                             Director General
8        Marit Otsing        Estonian Union of Cooperative Housing
                             Associations, Chairperson
9        Sirje Ludvig        Association of Municipalities of Estonia, Adviser

10       Triinu Gröön        Responsible Business Forum, Project Manager




                     Action Group meeting on 18 October 2005

Time: 10.00-14.00

Agenda:

Welcome and introduction of participants
Introduction of the Escobalt project
                                     Riina Kütt, Escobalt project manager,
                                     Association of Municipalities of Estonia
Overview of the CSRC
                                     Triinu Gröön, Responsible Business Forum
Discussion on CSRC in the energy saving context
                                     Facilitator Aare Vabamägi, Regional Energy
                                     Centres
Summary and ideas for further cooperation



Summary of discussions


General background to the energy efficiency situation in Estonia

Points highlighted in the discussion:

•    Energy saving does not seem to be a priority issue for the Estonian government, neither is
     energy saving strongly on the political agenda; coordinated activities and funds for energy
     saving are scarce. Estonia’s Long-term Public Fuel and Energy Sector Development Plan until
     2015 includes the energy saving component, the funds envisaged for corresponding activities
     are, however, limited.
        National Energy Systems and organisational structures of the ESCOBALT partners




•   Estonia is almost the only EU Member State without a central body/unit responsible for energy
    saving.
•   Estonia has no central coordinating body to deal with and promote energy saving.
•   Rural municipalities lack energy experts and experienced consultants to advise on energy issues
    on the local level. Inadequate knowledge of costs, markets and limited funding options
    (concerning those beyond bank loans from commercial banks) leads to limited action in the field
    of efficient use of energy and energy saving.
•   Comparisons in the field of energy production and consumption are hard to make due to the
    different calculation bases used in Estonia and other countries. Given this, it would be
    inappropriate to maintain as if Estonia had a much bigger potential for energy saving compared
    to western countries.
•   The energy efficiency situation in Estonia generally is not as bad as it might appear from
    statistics. Poor performance indicators are frequently the result of inadequate interpretation of
    statistics.
•   Compared to EU average, no catastrophic situation can be observed in relation to energy supply
    and production and ,in particular, to losses in energy distribution and transmission.
•   In district heating, efficiency has been guaranteed relative to production; distribution and
    transmission losses are, however, quite significant. Estonia uses contemporary production
    technologies and does not differ in this respect from other countries; correspondingly, energy-
    saving efforts should be channelled into improving the transmission networks.
•   Commercial banks tend to influence Estonia’s energy saving practices; rather than suggesting
    cost-effective solutions, they tend to propose the most expensive methods and renovations, eg
    replacement of windows should not precede but follow replacement of obsolete and ineffective
    in terms of energy saving central heating systems.
•   The awareness of the population of energy saving issues is inadequately developed.
•   A lot of research into energy issues has been commissioned and undertaken by different
    institutions; the research results, however, are not widely publicised. The publishing by the
    Ministry of Economics of the information bulletin featuring energy issues has stopped.
•   The Consumer Protection Board is weak and consumer protection movement not developed,
    thus consumers cannot be involved as partners in energy / tariffs policy etc discussions.


Potential for improvement


•   Worn-out DH pipelines should be replaced and and bank loans to carry out relevant works
    should be available.
•   An energy saving fund should be established at the Estonian Credit and Export Guarantee Fund
    (KredEx) in cooperation with the Ministry of Economic Affairs and Communications.
•   Building of co-generation facilities should be promoted; the respective potential has been
    explored, funding remains an issue. A scheme for government funding for co-generation
    should be elaborated; absence of government subsidies makes co-generation uncompetitive.
    Government intervention and regulation would be needed .
•   Local authorities and the government should jointly create district heating regions. District
    heating options should be widely promoted by local authorities.
•   Local authorities should develop long-term thinking in the field of stable, secure and efficient
    heat and power supply.
        National Energy Systems and organisational structures of the ESCOBALT partners




•   A central energy saving agency with branches all over the country should be established as an
    option.
•   The formerly well-developed system of Regional Energy Centres, which among other things
    deal with provision of information to local authorities on energy issues, should be restored.
•   Local authorities should institute the position of an energy specialist to advise on issues of
    energy supply and saving.
•   Local authorities should be trained in energy issues via special courses and information events.
•   Activities of local authorities that have managed to guarantee sustainable and efficient solutions
    for energy supply for their communities should be promoted as best practice cases.
•   Strong consumer movement and organisations should be created to give consumers a voice;
    consumer organisations should put forward the interests of the consumers which have to be
    reckoned with by monopolies.
•   The Energy Saving Portal at http://kokkuhoid.energia.ee/?id=1203 should be made widely known
    among experts, stakeholders and other interested parties.
•   A data base of websites promoting energy issues should be created and publicised. Materials
    already available should be systematized and made easily accessible for all interested parties.
•   Cooperative Housing Associations should be provided training in energy saving options so they
    could demand well-informed and cost-effective solutions for energy saving renovations of
    buildings.
•   Companies should be encouraged to promote energy saving based on the ultimate benefit for the
    company, consumer, the environment and society generally.
•   Awareness-raising in energy issues should start at a very early age and involve pre-school
    institutions, schools, etc and a range of stakeholders, incl energy supplies, the research
    community, etc



Corporate Social Responsibility (CSR) – potential for application,
cooperation and networking

•   Thinking based on the Corporate Social Responsibility Concept is new for the Estonian energy
    sector.
•   Estonian companies tend to generally focus on profits, not the quality of the service to the final
    customer or the progress and welfare of society generally.
•   Customer-focus and customer-friendliness are generally inadequately developed in companies
    supplying power, and among their staff.
•   Positive developments can be observed in the field of electricity supply where a range of user-
    fiendly services have been introduced, in particular concerning the national energy company
    Eesti Energia (eg submision of meter readings by phone, e-mail, etc; flexible payment options,
    etc).
•   CSR needs to be developed in Estonia. It might be more complicated with natural monopolies;
    the management supposedly not against, but rather supportive.
•   Public-private-third sector cooperation is needed for the efficient introduction of the CSR
    concept in the Estonian energy sector.
•   Competition needs to be stimulated to focus increasingly on the customer and to build a good
    reputation of the company in the eyes of the general public.
        National Energy Systems and organisational structures of the ESCOBALT partners




•   Relations with the Responsible Business Forum are to be strengthened; information on AG and
    Forum’s activities to be exchanged for bigger mutual benefit and creating synergies for a variety
    of actions / activities underway in the context of promotion of CSRC.
•   Awareness needs to be raised of the CSRC and energy saving among policy-makers, energy
    producers and suppliers and various stakeholders, also NGOs. Awareness should be raised
    among end-consumers so they could exercise pressure on energy suppliers if needed.
•   Information on international, national and local projects dealing with energy saving and CSR
    should be publicised.
•   Energy saving issues in the context of CSRC to be introduced in Escobalt project seminars for
    local authorities scheduled for January 2006.
•   A common platform for energy saving needs to be worked out.


Forms of cooperation

•   Cooperation could take place in the form of meetings, information and training events, and
    discussion rounds.
•   The circle of organisations involved in the Action Group could be expanded.
•   Training for the Action Group members on CSRC should be provided.
•   Responsible Business Forum invites AG members and interested parties to their international
    seminar in Tallinn.
•   CSR can be introduced to the annual forum of local authorities at the beginning of 2006 to
    build stronger international and Estonia-wide networks of actors dealing with CSR.




Profiles of organisations engaged in the Action Group of Energy Saving



ESTONIAN ENERGY MARKET INSPECTORATE

Operates in the area of administration of the Ministry of Economic Affairs and Communications.

The Estonian Energy Market Inspectorate (EMI) was Established pursuant to the Energy Act on
22 January 1998. EMI is responsible for implementing the state control, supervision of and
monitoring the fuel and energy market, including the issuance of market licences and price
control.

The main competence of the EMI is to supervise the fuel and energy markets. Due to the current
energy situation in Estonia the main tasks of the energy market regulator are likely to be
connected to licensing and the supervision of power transmission, distribution and sales tariffs
and the power generation prices of power plants with market dominating position.
        National Energy Systems and organisational structures of the ESCOBALT partners




With the opening of our new web page, we are moving forward as a growing institution. The info
contained on the pages will inform our clients who deal with fuel and energy about us as well as
help them understand the problems associated with Energy Act.

http://www.eti.gov.ee/en/tegevus/tegevus



MINISTRY OF ECONOMIC AFFAIRS AND COMMUNICATIONS, ENERGY DEPARTMENT




Energy Department is responsible for elaborating regulation necessary for good functioning of
national fuel and energy sector. The main function of the department is the elaboration of national
development plans and programmes for effective, competitive and environmentally friendly fuel
and energy sector and to guarantee their implementation. Energy department arranges formation
and administration of the minimum stocks of liquid fuel and drafts legal acts regulating the energy
sector.
The aim of the Energy Department is the elaboration of a new tax system that regulates
environmental and energy sector, elaboration of legal acts necessary for implementation of
mechanisms stipulated by Emission Trading and other Kyoto Protocols.

There are 13 officials employed in the department. The department is divided into two divisions:
Fuel and Energy Market Division and Renewable Energy Division.

http://www.mkm.ee




TALLINN UNIVERSITY OF TECHNOLOGY, DEPARTMENT OF THERMAL ENGINEERING




Mechanical engineering programs have been offered at TUT since 1918; however, the Faculty was
established in 1947. The mission is to retain its competitiveness on the national as well as
international scale as a center of educational, research and development work in mechanical
engineering, machinery and thermal power engineering.

The curricula have been tailored to satisfy the needs of the national industry, in the international
harmonization perspective, providing for specialization in product development, production
engineering, materials technology and vehicle engineering. In addition, specialists of thermal
engineering and mechatronics are trained. Academic and R&D work exploit today's information
technology and high tech facilities (computer classrooms, professional software, accredited testing
center and research laboratories). The Faculty is a provider of training courses to cater for enterprise
priorities. Examples of internationalization are: the international master program of Industrial
        National Energy Systems and organisational structures of the ESCOBALT partners




Engineering and Management and several cooperation schemes. Major collaboration projects
include joint courses with the Helsinki University of Technology (Finland), ROBOTEX robot
building mechatronics competition with the Royal Institute of Technology (Sweden) and the
University of Tartu (Estonia).

R&D projects covering all the fields pursued at the Faculty, financed by the Estonian Science
Foundation, the Estonian Technology Agency, as well as by international organizations. Among the
most successful projects are: development of a soot blower with super long travel, optimization of
the piano framework, implementation of a super-sonic flame sprayer, design and industrial
application of small-scale boilers, design and implementation of biomedical rehabilitation devices,
models for friction and wear of different machine parts, different machine parts, different coating
technologies and development of carbide based high-resistive materials and continuously running
service of materials and machine elements.

Departments

Laborotary of Mechanical Testing and Metrology
Machinery
Materials Engineering
Mechatronics
Thermal Engineering

http://www.ttu.ee/?id=1864




                TALLINN CITY GOVERNMENT – ENERGY COMMISSION

Formed 2003.
No of members: 17; includes representatives from the City Council, City Office, City Planning
Department, Municipal Engineering Services Department, Ministry of Economic Affairs and
Communications, Energy Market Inspectorate, Competition Board, Consumer Protection Board,
energy companies and Tallinn University of Technology.

The commission functions as a permanent body; its objective is to advise the city government on
the implementation of the energy strategy.

The tasks of the Commission include, among other things, providing the City Government with
recommendations on energy supply within the city planning framework proceeding from
consumers’ interests and principles on a market economy; assessing interlinkages between the
energy supply and social problems and suggesting potential solutions; assessing energy-related
environmental, social and economic issues in the city of Tallinn; promoting efficient use of energy
and shaping public opinion about energy saving issues; analysing different options for and
technical, ecological etc aspects of energy supply for different regions of Tallinn; carrying out
discussions of development trends and drawing up development plans; upgrading the energy
concept in connection with political, economic and social developments on national and
international levels.
        National Energy Systems and organisational structures of the ESCOBALT partners




                    ASSOCIATION OF MUNICIPALITIES OF ESTONIA

Founded in 1921 and has 167 members from among rural municipalities as of April 2004.
Functions as an NGO.


Main objectives

The objectives of the association are, through the joint activity of the local governments:

to foster the development of local government in general;
to represent its members;
to protect the common interests of its members;
to promote co-operation between its members and,
to create possibilities for improved performance of the functions prescribed by law for its members.

Main tasks

to facilitate co-operation of local authorities in representing, defending and expressing of their
common interests and rights;
to facilitate development and enhancement of the system local self-government based on the
principles of democracy and decentralisation of power in accordance with justified expectations and
interests of the residents and taking into account specifics of the development of local authorities;
to co-operate with and to foster co-operation and joint activities of local authorities and county
associations of local authorities;
to represent the members of the association as a whole in relations with state authorities, other
institutions and international organisations;
to co-operate with other associations of local authorities;
to perform other tasks according to the law.

Structure

General Meeting
The highest body of the association is the General Meeting - Maapäev. The association’s members
are represented by two delegates from each local authority appointed for the term of the authority of
the local government council. Each representative has a designated substitute.
The Council
The General Meeting appoints the members of the Council from the representatives of the
association’s members. The Council consists of 30 members, with two members from each county.
Chairman and vice-chairmen of the association, elected by the General Meeting, are the members of
the Council ex officio.
The Board
The directing and representative body of the association is 10-strong,
consisting of the Chairman, two vice-chairmen and 7 members of the Board.
The General Meeting elects the Chairman and vice-chairmen and other members
of the Board and they have to be representatives to the General Meeting.
            National Energy Systems and organisational structures of the ESCOBALT partners




                                          HTTP://WWW.EMOVL.EE



                             ESTONIAN POWER AND HEAT ASSOCIATION

Non-profit, non-governmental association of Estonian energy utilities (fossil fuels, biofuels & renewable
energy ), boiler plants, district heating enterprises and network enterprises and affiliated suppliers of
equipment, biofuels and services from Estonia and abroad.

Established:   by the 26 biggest energy enterprises in 1995.
Office opened: from April 1996.
Members:       60 as of March 2005.

Main areas of activity:

•       to work out drafts for technical rules/ instructions and to make proposals for legis- lative acts on
        behalf of members;
•       to collect and to analyze information from members and to advise on efficient and environmentally
        friendly supply of energy;
•       to inform members about available new technologies, energy conservation, materials. services etc;
•       to co-operate with sister associations and other corresponding organizations in Estonia and abroad;
•       to assist members in implementing international projects.

Methods of work :

•   permanent technical and economical committees for determination targets and for nomination
    temporary working groups;
• temporary working groups for special short term problems;
• office responsibilities are:
  - to support committees and working groups;
  - international relations;
  - co-ordination of training’s, seminars, etc.

Association is member of:

    -     Euroheat&Power
    -     Baltic Energy Council

Address: 36 Punane Street                  Tel.: +372 6556 275
             Tallinn 13619     Fax: +372 6556 276
                   Estonia                 E-mail:epha@online.ee

http:// www.epha.ee
        National Energy Systems and organisational structures of the ESCOBALT partners




REGIONAL ENERGY CENTRES

Functions from 1999 onwards as a non-profit organization. Regional Energy Centres have three
offices and 3 employees; additional staff can be engaged according to need.

The centres form a network, which provides support and services to rural municipalities and other
parties in the field of energy outside large cities in Estonia. The main functions of the centers are to:


• supply information about energy issues to local institutions and companies;
• train selected staff members from municipalities, companies, utilities and consultants on energy
  related topics in order to improve the skills of project identification, project description and loan
  application;
• assist and collaborate with other institutions in the co-ordination of energy related projects in the
  designated regions;
• assist the target group with initial technical and organizational audits;
• carry out feasibility studies, energy plans, energy audits, business plans for energy related issues;
• implement light fuel oil using boilers conversation project to the wood pellet and other
  renewable fuels;
• assist and create pilot projects in the field of energy.

Main activities: training for local authorities; implementation of boiler conversation projects;
conducting feasibility studies, preparing business plans, energy plans, carrying out energy audits
local, dealing with energy planning, etc.

There are three energy centres in Estonia located in Rakvere, Viljandi and Võru.


                                       Regional Energy Centres
                                             in Estonia



                       R akvere


                                         V õru
             V ilj a n d i
        National Energy Systems and organisational structures of the ESCOBALT partners




    ESTONIAN UNION OF CO-OPERATIVE HOUSING ASSOCIATIONS


Estonian Union of Co-operative Housing Associations (EKL) is an organisation uniting Estonian
housing co-operatives and associations, which defends and develops the interests of its members on
the local, state and international authority levels.

Estonian Union of Co-operative Housing Associations was established on 17th of April, 1996 in
Rakvere.

Estonian Union of Co-operative Housing Associations was founded to comprehend, assist and
protect the interests of flat-owners associations and housing co-operatives. The Union has nine
bureaus in various towns all over Estonia, where it is possible to obtain versatile information on the
issues of organisation of activities of flat-owners associations and housing co-operatives. These
offices are situated in Tallinn, Tartu, Rakvere, Pärnu, Võru, Kuressaare, Türi, Viljandi, and Põlva.


The main goals behind the activity of the Union:

• to develop and advertise the flat and housing associations movement.
• to assist the members in connection with fulfilment of the tasks they are facing, such as
  management and administration of their housing, and other.
• to gather and forward the current information to its members, and to publish relevant leaflets and
  materials.
• to influence and participate in legislation; observe and contribute to the development of
  legislative and other acts of law.
• to provide help with the establishment of associations and other management and administration
  structures.
• compilation and implementation of development projects and training programs dealing with
  joint housing management and having a nationwide as well as local and regional importance.
• to offer its members a universal professional, high-quality service.

Estonia has become a republic of housing co-operatives.

The Union is lead by a 16-member Council, which is elected at the Union Day and assigns the
board. The latter`s task is to supervise and implement everyday activities of the Union in
accordance with decisions approved at the Union Day and by the Council.

MEMBERSHIP

Foremost the membership in our organisation gives you strength and the power of knowledge. You
comprehend the co-operative movement as a part of society and take active part in the processes
        National Energy Systems and organisational structures of the ESCOBALT partners




influencing the society- you donate and receive as well. It is relevant to support each-other and
enable the progress.

As a member of Estonian Union of Co-operative Housing Associations you
• affect the development of the housing economy of the whole Estonian Republic, as well as on
  the local level;
• you make your own, and with this the lives of others, more comfortable;
• you comprehend the co-operative movement as a part of society, and you have a possibility to
  participate in the forming processes of the society.


HOUSING- DISCOUNT CARD

Estonian Union of Co-operative Housing Associations operates together with the companies
providing discount prices for associations for relevant services and products. The card has been
acknowledged by both firms and associations, as the reliability, quality of the product and service,
guarantee, and reasonable prices have an important role in our lives today. The list of the companies
offering the discount is growing continuously.

THE PROJECTS OF DEVELOPMENT

• the project of co-operation between the Estonian Union of Co-operative Housing Associations
  and the City of Tallinn, which enables the associations to loan money on special terms.
• a discount insurance for the members of EKL.

THE HOUSING MAGAZINE

To offer its members current, relevant information on the necessary topics, EKL publishes the
magazine ELAMU. It reflects the activities of flat and housing associations in Estonia and abroad.
Each issue deals with expert information in the following areas: legislation, co-operation, training,
economy, and renovation. The magazine comes free for the members of EKL.

GUIDANCE PUBLICATIONS

Estonian Union of Co-operative Housing Associations has published several guidance books in the
series of GUIDANCE BOOKS FOR THE HOUSING ASSOCIATIONS, about the managing of
these associations, bookkeeping, and legal issues, as well as the co-operation. In order to help the
associations to find the firm providing the service necessary with the best quality, there has been
released a catalogue “Information about housing”.

INTERNATIONAL RELATIONS

Estonian Union of Co-Operative Housing Associations represents Estonian flat and housing
associations in the following international organisations: ICA Housing, CECODHAS; and the
Baltic Union of Co-operative Housing Associations (BUCHA).

At the UN Habitat II+ 5 conference 02.06.2001- 04.06.2001 the development of the Union during
the last 5 years was acknowledged as one of the best 12 worldwide examples of such practice.
        National Energy Systems and organisational structures of the ESCOBALT partners




EKL also co-operates with the Finnish Union of Real Estates, Norwegian Union of Co-operative
Housing Associations (NBBL), Swedish Union of Co-operative Housing Associations (HSB),
Canadian Union of Co-operative Housing Associations, the European Organisation of Social
Economy CECOP.

Co-operation- forming of a new identity

Estonian Union of Co-operative Housing Associations bears in mind the universal principles of co-
operation: voluntary and open-minded membership, democratic government and control, the
economic involvement of members, independence and freedom, training and information, co-
operation on the local, regional and international level, and interest in the development of the
neighbourhood.

In housing associations, where people share the values and principles of behaviour, in the name of
common interests, goals and trust, there is a social capital born.

www.ekyl.ee




RESPONSIBLE BUSINESS FORUM

Responsible Business Forum is a 2-year project, which aims to promote responsible
entrepreneurship and corporate social responsibility among different stakeholders in the society
of Estonia. The main output of the forum is to deliver a report on CSR in Estonia based on a
multistakeholder discussions and input from various key players in the field.

In 2005 main focus is on creating a virtual interface (www.csr.ee) to promote CSR and engage all
interested parties in the process through also organizing various events and participating in many to
promote the Forum.

In 2006 focus will be on a multistakeholder discussions and dialogue to prepare a final report of the
project indicating opportunities, threats, needs etc for CSR in Estonia.

Estonian background to CSR

http://www.csr.ee/243

								
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