Energy Savings in Estonian Municipalities'

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Energy Savings in Estonian Municipalities.

• Aare Vabamägi
• Association of Municipalities of Estonia.

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Contents

• Introduction
• Legislative background (www.legaltext.ee)
• Long-term Public Fuel and Energy Sector
  Development Plan until 2015
• Energy saving program
• Reality

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Introduction

• Association of Municipalities of Estonia is a
  national association of local authorities.
  www.emovl.ee
• Founded on November 20, 1921
• 176 members as of April 15, 2004
• 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.

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Provisions of Local Government Organization Act

• The functions of a local government include the
  organization, in the rural municipality or city,
  of social assistance and services, welfare
  services for the elderly, youth work, housing and
  utilities, the supply of water and sewerage, the
  provision of public services and amenities,
  physical planning, public transportation within
  the rural municipality or city, and the
  maintenance of rural municipality roads and city
  streets unless such functions are assigned by law
  to other institution.

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Provisions of District Heating Act (1)

• District Heating Region
• Municipality has a right to determine region,
  where only district heating network can be used
  for heating purposes.
• Before making regions, municipality has to
  analyze alternative solutions of heating (Energy
  master plan).
• For the purposes of customer protection, system
  effectiveness and environmental protection
  municipality has to set requirements for the
  district heating companies active in the district
  heating region.

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Provisions of District Heating Act (2)

• Energy Market Inspectorate will regulate prices
  for
• Companies, whose sales in their area is over 50
  000 MWh
• Companies belonging to concern, if the total
  sales of the concern in Estonia is exceeding 50
  000 MWh
• Companies using CHP-s.
• Other companies heat prices are regulated by the
  municipality

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Provisions of District Heating Act (3)

• 5 District heating region .
• A district heating region is an area determined
  by a comprehensive plan within which consumer
  installations are provided with heat by way of
  district heating in order to ensure a secure,
  reliable and effective heat supply at a justified
  price in compliance with environmental
  requirements and the needs of the final customer

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Comprehensive plan based on energy master plan

• The objective of energy master planning is to
  maximize the benefits available to a community
  through the optimum use of energy resources. The
  energy plan itself is a forward-looking document
  that helps to focus attention on the most
  important priorities and to create a framework
  for energy-related projects to be agreed and
  implemented.

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Long-term Public Fuel and Energy Sector
Development Plan until 2015 (1)

• The strategic objectives of the Estonian fuel and
  energy sector are among others to (full text -
  www.mkm.ee)
• ensure fuel and energy supply with the required
  quality and at optimal prices
• 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

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Long-term Public Fuel and Energy Sector
Development Plan until 2015 (2)

• 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 the year 2003

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Long-term Public Fuel and Energy Sector
Development Plan until 2015 (3)
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Energy saving program 1992

• The Principe's were
• decrease use of import fuels compared with 1991
  by 50 during 5 years (target was filled)
• Solve DH companies ownership problems
  (municipality took ownership)
• Finances for program (5,2 milj EUR from state
  budget during 1992 1998, loans guaranteed by
  state)
• End of gross subsidies for energy and fuel
  prices.
• Awareness campaigns for energy saving and
  rational use.

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Energy saving program 2000 2005.
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Energy saving program 2000 2005.

• The Principe's are
• Support growth of economy
• Security of supply, optimal energy price
• Decrease environmental impact from energy use and
  production side
• Energy end-users well-being and effective job
  surroundings
• Energy investments to the rural areas

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Energy saving program 2000 2005.

• 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.

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Energy saving program 2000 2005.
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Reality

• 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
• Still many rural municipalities have difficulties
  to finance energy saving project from own budget
  and loan capabilities are low.

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Reality

• Energy master plan methodology exist from 1999
  project Energy Planning in Estonia AEA
  Technology, UK.
• Energy audits methodology is not officially
  agreed. Exist Danish, Finnish and home made
  methodology problematic, because there is
  demand on the market for the audits, hard to
  compare results.
• No statistics about the results of the audits.
• Energy auditors professional level should improve
  and quality control mechanism is needed.

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Reality

• Energy saving should start from the planning of
  energy saving activities.
• Effective implemented activities will increase
  energy saving.
• After the activity has made - results should be
  analyzed. This part is missing in most Estonian
  municipalities and even in state level.

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Reality

• Awareness raising about energy saving
  possibilities and responsibility for the most
  efficient use of local budget (tax payers money!)
  foreseen for energy cost those are key factors
  in municipal level.
• Awareness raising possible to solve,
• Responsibility in public sector ? In many
  places and officials.