1. Solid biofuels usage in Estonia Ando Leppiman Head of Fuel and energy market division Energy department Ministry of Economic Affairs and Communications BASREC BioEnergy WG co-chair

2. A.LeppimanBaltic Wood Energy2 Topics Solid biofuels consumption statistics Solid biofuels in legislative acts and strategies Future of the solid biofuels usage

3. A.LeppimanBaltic Wood Energy3 peat oil shale wind forest

4. A.LeppimanBaltic Wood Energy4 Primary energy balance in 2003

5. A.LeppimanBaltic Wood Energy5 Realistic potential of electricity from renewable energy sources Solid biofuels in CHP mode – 164 GWh (2,2…2,7% 2010) Biogas and landfill gas in CHP mode - 25 GWh (0,3…0,4% 2010) Black liquor – 11 GWh (0,1…0,2% 2010) Wind – ca 1 TWh (target for 2010 is 200 GWh – 2,5%) Hydro – 50 (300*) GWh (0,6…0,9(2,8…3,3)% 2010) Estonian target for renewables electricity is 5,1% by 2010 according to the EU renewables directive.

6. A.LeppimanBaltic Wood Energy6 Development of wood fuels supply

7. A.LeppimanBaltic Wood Energy7 Production of wood and peat fuels

8. A.LeppimanBaltic Wood Energy8 Utilization of firewood

9. A.LeppimanBaltic Wood Energy9 Utilization of wood chips and wood waste

10. A.LeppimanBaltic Wood Energy10 Usage of wood fired boilers in 2003 Fuel Number of boilersTotal capacity Average capacity of boilers Total heat production Utilization time MW GWhh (MWh/MW) Wood8637980,92517001970 Peat40581,4502414155 Total wood and peat903856 1941 Average wood and peat 1,055 2268

11. A.LeppimanBaltic Wood Energy11 Utilization time of boilers

12. A.LeppimanBaltic Wood Energy12 Electricity market act § 57. Renewable energy sources (1)For the purposes of this Act, renewable energy sources are water, wind, solar, wave, tidal and geothermal energy sources, landfill gas, sewage treatment plant gas, biogases and biomass. (2)For the purposes of this Act, biomass is the biodegradable fraction of products, waste and residues from agriculture (including vegetal and animal substances), forestry and related industries, as well as the biodegradable fraction of industrial and municipal waste. § 59. Purchase obligation (3)The network operator shall purchase the electricity specified in subsection (1) of this section at a price which is 81 cents for a kilowatt-hour.

13. A.LeppimanBaltic Wood Energy13 Long-term Public Fuel and Energy Sector Development Plan until 2015 The strategic objectives of the Estonian fuel and energy sector are to: 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 Fulfilment of the strategic objectives is based on the following principles: 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.

14. A.LeppimanBaltic Wood Energy14 Estonian electricity market development plan 2005-2015 draft The objectives of the Estonian electricity market development are: Develop the technologies to use energy resources more efficiently, including the combined heat and power technologies The main constraints and entered engagements are: Ensure the fulfillment of the national and internationally taken environmental engagements 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

15. A.LeppimanBaltic Wood Energy15 Estonian electricity market development plan 2005-2015 draft Electricity production from renewable sources until 2015 200520102015 Wind1,0%2,2%4% Biofuels (solid biofuels) 0,2%2,5%3% Others0,3%0,4%0,5%

16. A.LeppimanBaltic Wood Energy16 Estonian electricity market development plan 2005-2015 draft Potential of the combined heat and power until 2015 CHPElectrical capacity, MWThermal capacity, MW Tallinn100300 Tartu22,567,5 (160) Pärnu11,536 (70) Viljandi2,57,5 (27) Kuressaare39 (24) Võru26 (23) Haapsalu26 (20) Paide26 (19) Rakvere26 (16) Keila26 (16) Valga1,54,5 (15) Jõgeva1,54,5 (15) Kokku152,5 (440)459 (705)

17. A.LeppimanBaltic Wood Energy17

18. A.LeppimanBaltic Wood Energy18 Thank you for your attention! Ando Leppiman +372 6 256 481 Ando.Leppiman@mkm.ee