Under the amendments, renewable energy and grid transmission fees for storage equipment would only be charged on net consumption for the calendar month. . The IEA commends Estonia for the steps it has taken to end all remaining energy trade with Russia while ensuring regional energy security, and for the work to accelerate the energy transition, including setting a 2050 carbon-neutrality target and a target for 100% of annual electricity demand to be. . The objective of the measure is to carry out a pilot programme on renewable energy storage in Estonia. The knowledge acquired in this pilot programme is expected to provide a basis for the future zero-subsidy investments into storage facilities.
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Estonia's ambitious targets require accelerated renewables deployment, increased electrification and phasing out oil shale generation while ensuring a just transition that maintains energy affordability and supports economic development in the oil shale region.
Estonia has taken steps to ensure regional gas security while working to reduce its gas demand and decarbonise its gas supply. Natural gas plays a relatively minor role in Estonia's energy system and is used mostly for heating.
The European Union ban on wood imports from Russia could increase demand for Estonia's forestry energy products (40% of which were exported in 2021), potentially increasing prices and reducing domestic availability. Measures to boost LULUCF carbon absorption could reduce the availability of biomass for energy.
Estonia also has large phosphate deposits that may contain other critical minerals and present an opportunity for Estonia to support the energy transition and expand its economy, with the potential to use skills and expertise from the oil shale industry.