Energy sector

Estonia has set a goal to establish an open market situation on all the different energy sectors, so that the achieved price is the result of competition between different suppliers. For this to work, we have to develop energy infrastructure, which reaches beyond our borders.


Marine cables between Estonia and Finland, Estlink I and Estlink II, are already finished, we are currently working on an additional electricity connection between Estonia and Latvia. On the gas market, the priority is to completely develop the regional gas market and to enable the participants of the local market to access the regional gas infrastructure on equal conditions. It is also important to expand Baltic gas market to the north (Balticconnector) as well as to the south (Lithuanian-Polish gas pipeline).

However, Estonia is among the European Union countries that are least dependent on energy imports. Thanks to the use of oil shale and increasingly also renewable fuels, we can largely meet the energy requirements of our country.

We also work to maintain and even enhance Estonia’s energy independence in the conditions of stricter energy and climatic policies. The goal of Estonia’s market based energy policy is to secure our energy independence, secure supply and competitive energy prices, which are all among the main prerequisites for economic development.

Energy sector



Different areas of the energy sector of the Republic of Estonia are managed and regulated by the Energy Department of the Ministry.

Electricity market

The Estonian electricity market has been completely open since 2013 and consumers are free to choose a service provider from a number of sellers of electrical energy.
Further information »

Energy efficiency

Until now, the state has mostly focused on saving energy by improving the energy performance of buildings, using renovation as the main tool, as this is the most energy consuming sector.
Further information »

Energy from renewable sources

By 2020, Estonia has promised to meet the goal of energy from renewable energy sources contributing 25% of the energy consumed; different support measures have been devised to meet this goal.
Further information »


Heating sector

Approximately 70% of heat consumed in Estonia is distributed by means of district heating. Approximately 30% of the population heat their houses themselves, mostly using wood and natural gas.
Further information »

Gas market 

The goal for the coming years includes connecting the gas market of the Baltic states and Finland to the Central European gas markets and to establish a liquefied natural gas terminal for the intake of gas.
Further information »

Liquid fuels

Approximately 25% of energy consumed is attributable to the transport sector. By 2020, ten per cent of the energy consumed by transport sector must come from renewable sources of energy. 
Further information »


Goals of Estonian energy market for 2020


Estonia and the other European Union member states have established the goal of improving the environmental soundness of energy production and diversifying the energy portfolio.

For that purpose, the following objectives are to be achieved by 2020:

  • Bringing the share of energy from renewable sources up to 25 per cent of final consumption rates.
  • Achieving the 10 per cent proportion of energy from renewable sources in the transport sector final consumption rates.  
  • Not to exceed the level of 2010 in total energy consumption (2,818 ktoes).
  • Keeping the emission of greenhouse gases to atmosphere within the limit of 11 per cent, compared to the level of 2005. 

What is toe?
Tons of oil equivalent or energy that is equivalent to energy obtained by burning one ton of oil, 1 toe = 41,868 GJ, 1 TWh electricity energy = 0,086 Mtoes 
(Mtoe – mega toe or million toes, ktoe – kilo toe or thousand toes).


National Development Plan of the Energy Sector

The Ministry of Economic Affairs and Communications has started the development of a new energy sector development plan, setting the goals until the year 2030.

The Estonian National Development Plan of the Energy Sector Until is aimed at ensuring the energy supply available to the consumers at a reasonable price and effort and at an acceptable environmental condition, while observing the terms and conditions established in the long-term energy and climate policy of the European Union. The most beneficial economic competitiveness aspects must be observed for the purposes of the implementation of the National Development Plan of the Energy Sector. 

The new plan also drafts the benchmarks for renewable energy and energy saving operational programmes and the vision for the renovation of buildings. Therefore, the development plan will considerably contribute to the development of Estonia. 

The current version of the development plan of the energy sector will remain in force until 2020; however, investments into energy require long-term planning. Although the new development plan will set the trends until 2030, targets are set even until the year 2050.


    International co-operation

    Estonia has been a member of the International Energy Agency since November 2013.

    Being a member of the International Energy Agency will give Estonia access to highly appreciated analyses of energy policies and forecasts made about the sector. It will also allow Estonia to introduce our unique experience of attaching value to oil shale and related know-how among the developers of energy policies.

    Legislation and surveillance

    As many energy sector legal acts share a considerable common component, the energy sector regulation act is being drafted.

    In various laws that regulate the energy sector, the principles for measuring the quantities, invoicing and communication of information are often the same. Therefore, there is an intention to develop the energy sector regulation act as a horizontal legal act that will deal with overlapping components of different laws as a single components.

    The first stage for the development of the energy sector regulation act (to be finished by summer 2014) involves the regulations applicable to the field of energy efficiency.


    Surveillance over the market participants is conducted by the Estonian Competition Authority; all the undertakings involved in district heating, electricity and gas transfers and distribution will be required to harmonise their rates with the Authority.

    Such a system of surveillance will allow the consumers to be sure that undertakings are not earning unreasonably high profits by abusing their monopoly position in the market. The Authority will also see that the investments made by undertakings to improve the technical condition of networks and to develop energy infrastructure are reasonable and made in due time.


    Last updated: 12 March 2015