Estonia

Index rank 35

Energy Sustainability Index Rankings

 2010  2011  2012  Trend
Energy Performance  26  46  43 
Energy Security  46  69  42 
Social Equity  47  46  46 
Environmental Impact Mitigation  5  29  50 
       
Contextual Performance  28  24  24 
Political Strength  23  21  22 
Societal Strength  29  30  28 
Economic Strength  38  26  27 
       
Overall Rank  23  38  35 
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Fossil Fuel Resources

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Key Metrics

Industrial sector (% of GDP) 28.5
TPEP / TPEC  (net energy importer) 0.63
Emission intensity (kg CO2 per USD) 3.22
Energy affordability (USD per kWh) n.a.
GDP / capita (PPP, USD); GDP Group 18,539 (B)
Energy intensity (million BTU per USD) 0.04
CO2 emissions (metric tons) / capita) 13.05
Population Access to Electricity (%) 100.0
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Index Commentary

Estonia rises in the Index by three places to rank 35. This was mainly triggered by significant improvements in energy security driven by a decrease in energy consumption, as well as a more diversified electricity production and an increased wholesale margin on gasoline. Environmental impact mitigation decreases due to a significant drop in the quality of air and water, which is partly offset by small improvements in CO2 emissions from electricity and heat generation. Estonia exhibits a constant performance in social equity and the contextual dimensions. Overall, Estonia performs better in all contextual dimensions; however, the 75/25 Index weighting regime means better contextual scores, both absolute and relative, have only limited impact while the country struggles with improving its energy performance.

Trends and Outlook

Estonia has over the last couple of years successfully worked on improving its security of energy supply by diversifying its energy imports, increasing the domestic electricity production capacity to exceed domestic demand and increasing the share of domestically produced liquid fuels and thereby its export capability. Estonia still struggles with environmental impact mitigation, mainly due to CO2 emissions from electricity production. Recently, Estonia has had several excellent developments: 1) due to the increase of production of renewable energy, the government is now in a position to negotiate decreasing subsidies for renewable energy with the energy industry. In the first half of 2012 the share of renewable electricity production reached 20.4% of consumption; 2) new shale oil production units are being built, leading to less dependence on imports of petroleum products; and 3) regulated electricity prices will be completely abolished starting January 1, 2013 which is expected to lead a slight increase of electricity prices. Key trends, which are expected to support Estonia’s moving up in the Index rankings are: 1) the continued increase of the share of renewable energy in the electricity production mix; 2) the building of new interconnections with neighbouring countries; and 3) the ability to satisfy most of its need for diesel fuel from refining shale oil. However, Estonian policymakers need to also focus on the other two aspects of the energy trilemma, environmental impact mitigation and social equity, while keeping energy security levels high.

Notes

1) Data for shale oil is for resources in place