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Contact phone: + 372 6313 466
E-mail: tallinn@innovationnorway.no
- The Baltics need to close their Soviet time energy production facilities, not complying with EU requirements. Lithuania has
to close Ignalina's nuclear power station; Latvia has to reduce its dependence on gas supply from Russia; and Estonia will
have to shift from oilshale-based energy production with a high environment cost to more sustainable solutions. (Estonia will
start to pay full fees for CO2 emissions from 2013).
- The Baltics have committed to a common EU goal of increasing renewable energy production. E.g Latvia has set an ambitious
target to increase its' renewable energy consumption to 40 per cent of the total final energy consumption by 2020. The tariffs
for renewable energy producers are attractive and there is public support available for new renewables investments in the
Baltics. Smaller producers' interests are more and more considered.
- Wind- and bioenergy investments are most relevant, due to the natural conditions - seaside location and abundant forest resource.
(50% of Europe's forest resource lies in the Nordic-Baltic region). Biogas is important due to the agriculture sector. There
are as well opportunities in hydropower, and other energy segments.
- Lithuania was first in the Baltics with opening its power market in January 2010. 35 per cent of Estonian power market will
be opened in April 2010. Nord Pool Spot, owned by Nordic transmission system operators, has announced incorporating Estonia
into its pricing area from that date. This is an important step in integrating the Baltic power system with European Union's.
The Baltics have been as if an energy island within European Union, dependant on Russia's power system, therefore is the integration
with EU's power system very important.
- Opening of the energy markets is another trigger for new investments (that were not justified under regulated energy prices).
According to the Estonian Ministry of Economy the investment need into Estonian energy sector alone is ca 6 billion EUR in
the coming 15 years period.
- Also upgrades of energy transmission networks are on the agenda.
- Energy efficiency is an important issue. Most of the housing in the Baltic countries originates from Soviet time when heating
costs were minimal and there was not much attention on energy efficiency. E.g Estonia uses 270kWh for heating one square metre
of residential space, while Nordic countries on average use under 150kWh. As most of the housing stock is anyhow in need of
renovation, improving energy efficiency can be done in parallel. Works reducing operation costs and improving appearance of
properties are popular both in the private and public sector.
- There are significant Nordic investments in the Baltic market, both to the processing industry and servicing (as e.g banking).
Norway is the 4th largest investor to Estonia, 5th largest to Latvia and 10th largest to Lithuania.
- Nordic countries have a strong profile in the market (Sweden and Norway are the 2 highest ranked nations/countries in Estonia),
and are known as environment-friendly.
- Norwegian energy players have established successful activities in the Baltics: Statoil is the market leader in fuel retail
and has a biodiesel factory; Buskerud county energy company Vardar is with its windmill parks and bioenergy projects one the
largest renewables investors; ENSI offers energy efficiency products; Energy Future Invest has invested into Crystalsol, an
Estonian startup company, for the research and development of its novel solar cells; Nord Pool Consulting advises Lietuvos
Energia to develop the local electricity market. And there are numerous opportunities yet to be discovered. Innovation Norway
has experienced a doubling of request from Norwegian energy & environment sector over the last year.
- Innovation Norway has surveyed energy market opportunities for Innovation Norway's Vind og Hav companies network in Europe,
including the Baltic markets. (The report is available at http://www.innovasjonnorge.no/upload/Wind%20and%20Ocean%202009%20FINAL.pdf).
- There are interesting developments in energy clusters in the Baltics. Some of them have expressed interest for more co-operation
with relevant Norwegian parties. Norwegian bioenergy cluster Arena Bioenergi is participating in a Baltic Sea Region cross-border
co-operation project.
- There are numerous financing sources for new energy projects in the Baltics, including both public and private; and different
Norwegian, Nordic, and European Union sources. Amongst others it is worth mentioning that Norwegian & European Economic Area
Financial Mecanisms (Norway's funding support to new EU countries) will be focused on co-financing environment friendly energy
projects. Innovation Norway has launched a new grant scheme for funding of energy&environment sector pilot projects in 2010.
- The energy sector development in the Baltics requires new investments, technologies and know-how. Norwegian competence and players are welcome to the market.
