Ecology, Energy, Energy Market, Estonia, Investments

The association has drafted a plan for a 100% changeover to renewable energy in electricity and heat production, which according to its authors would increase Estonia's gross domestic product (GDP) by 2.2% per year on the average.

"If the plan is carried out, it it will be possible to create 14,000 new jobs on the average and leave 600 mln euros in Estonia on account of imported fuels," Rene Tammist, director of the Estonian Renewable Energy Association, said in a press release. He said the plan would provide the Estonian economy with a new growth engine and showcase Estonia as a center of competence in renewable energy.

Implementation of the plan would reduce Estonia's carbon dioxide emissions by 15 mln tons per year, or by more than 70% of total. The plan would also have a positive effect on consumers, as it requires large-scale involvement of households through the installation of micro and small energy production equipment.

The size of the required investment is 4.31 bln euros measured in 2014 prices and not considering inflation. The possible sources of financing listed by the association are private capital, money earned by selling carbon emission credits, and alternative sources of finance.

"Investment support – emissions trade, [European Union] Structural Funds – will cover half the costs, the rest will be covered by private capital," the association said.

More precisely, the association estimates emissions trade to provide 54% of the necessary amount or 2.39 bln euros and EU Structural Funds approximately 210 mln euros in the years 2020–2030. In addition renewable energy trade should provide 2.5 bln euros to make investments in offshore wind energy.