On Thursday, the Estonian government approved the energy sector development plan for 2035 (ENMAK 2035).

“ENMAK sets out a framework on the basis of which both the public and private sectors can plan their future activities and investments. The best results will come from market-based development of the energy sector, but if this does not produce the desired results, we have solutions in reserve, such as measures to ensure controllable capacity, financial instruments or the reduction of bureaucracy,” said Minister of Energy and the Environment Andres Sutt (Reform) in a press release.   

According to Sutt, it is important to remember that Estonia’s energy sector, which is currently based largely on oil shale, has fallen behind the times and become vulnerable. Therefore, a new and future-proof solution is needed.

“Estonia already ranks highly in several international energy sector rankings, which means that we are on the right track. Of course, we cannot rest on our laurels. We have to set a clear course for Estonia: we will ensure security of supply, protect consumers’ wallets and move steadily towards cleaner energy. These decisions are not only technical but will shape Estonia’s economy and society for the next decade and beyond,” the minister said.

At a press conference following Thursday’s government meeting, Sutt said the price of electricity on the Estonian stock exchange in 2025 was the lowest in five years, which shows that things are moving in the right direction.

However, he also emphasized that for prices to fall further, new production capacity has to be established.

Sutt said the investments planned by ENMAK would cost a total of around €15 billion over ten years.

ENMAK’s focus is on ensuring Estonian has a diverse production portfolio so its electricity system remains reliable and resilient at all times, the Ministry of Climate said in a press release.

In addition to the skilful use of local clean energy sources such as wind and solar power, in combination with storage solutions, sufficient controllable capacity also has to be ensured in Estonia. New controllable capacity is needed because most of the existing controllable capacity that uses oil shale is old, unreliable and not competitive on the electricity market.

The transition to clean energy is one of the development plan’s sub-goals. The ambition to achieve 100 percent renewable electricity consumption remains, though that will be achieved on a market-related basis when production technologies are competitive without the need for operating subsidies, which is predicted to be the case after 2030. 

The development plan also leaves open the possibility of introducing nuclear energy production in the future. For Estonia, it is of utmost importance to ensure the ability to produce sufficient energy to meet the country’s own needs.

Estonia is already well connected to its European Union neighbors, and when production in Estonia is more expensive, it can import cheaper electricity. It is important that one solution or another is our own choice, the ministry said.

In the district heating sector, the aim is to harmonize prices, upgrade district heating systems and gradually introduce new efficient technologies such as heat pumps and heat storage tanks.

In the gas sector, the goal is to increase the proportion of renewable gas used to one-third of all gas consumption by 2035.

The development of the transport sector is informed in more detail by the “Transport and Mobility Development Plan 2021-2035.”

ENMAK 2035 was compiled via a thorough preparatory process, which involved conducting basic research, holding working group meetings, numerous consultations and engagements to supplement the draft and a strategic environmental impact assessment.

According to Sutt, ENMAK 2035 is not a complicated document. It is only 30 pages long, written in relatively simple language and has already received positive feedback.

Work on the 5-year development plan began in 2021. It provides an overview of how Estonia has reached its current situation in the energy sector, how it is moving towards 2035, and what its vision is for 2050. The plan also sets out general and specific objectives and planned activities in the fields of renewable energy, gas supply, oil shale energy, and heating and cooling.

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