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Electricity sector legislation in Estonia , issues to be solved

Electricity sector legislation in Estonia , issues to be solved. Einari Kisel Director of Energy Department. Storyboard. What is Common Baltic Electricity Market? Issues to be solved Planned amendments to the Estonian Electricity Market legislation.

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Electricity sector legislation in Estonia , issues to be solved

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  1. Electricity sector legislation in Estonia, issues to be solved Einari Kisel Director of Energy Department

  2. Storyboard • What is Common Baltic Electricity Market? • Issues to be solved • Planned amendments to the Estonian Electricity Market legislation

  3. What is Common Baltic Electricity Market?(1) • Market Area: • Security of Supply Area: • Baltic States ? • Baltic States with North-West Russia ? • Baltic States with Nordic Market ? • Baltic States with NW Russia and Nordic Market ? Technically:

  4. What is Common Baltic Electricity Market? (2) • Who are the market participants ? • Where and how the security of supply should be guaranteed? • What do we want to achieve in CBEM? • What do we want to avoid in CBEM?

  5. Estonian Electricity Market legislation Required licencing of activities in Estonia • to avoid, all Baltic States should have similar approach to all market participants (also to importers) Market opening by 2009/2013 • to accelerate, the framework towards Russian electricity supplies has to be agreed by all Baltic States • to accelerate, the handling of dominant players has to be regulated

  6. Additional issues to be solved • Security of Supply area (how much capacity should be available in the market area): Common Baltic Electricity Strategy • Regulation – from price cap to market power regulation • Environmental taxes

  7. Planned new regulation for Renewable Power and CHP (1) • 1.option: • purchase obligation • 5,17€cnt/kWh for RES-E less than 100 MW • 3 €cnt/kWh for CHP using peat and waste • 3 €cnt/kWh for CHP installed instead of a boiler house (less than 10 MW) • applicable for 12 years from start of operations • for wind power: applicable until 200 GWh within a calendar year is produced from wind power

  8. Planned new regulation for Renewable Power (2) • 2. option: • sale to the market with market price, additional premium • 3,2€cnt/kWh for RES-E less than 100 MW • 1,1 €cnt/kWh for CHP using peat and waste • 1,1 €cnt/kWh for CHP installed instead of a boiler house (less than 10 MW) • applicable for 12 years from start of operations • for wind power: applicable until 400 GWh within a calendar year is produced from wind power

  9. Planned new regulation for Renewable Power and CHP (3) • 3. option: • sale to the market with market price, get guarantee of origin  sell “green electricity” or “CHP electricity” • applicable forever

  10. Conclusions • Currently there are different approaches to the concept of CBEM in the Baltic States • Few changes needed Estonian electricity market to be liberalised, depend from Russian interface. • Common Baltic Electricity Strategy is needed • Amendments to the electricity market regulation in Estonia will support renewables and CHP-s

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