EU Tracker – Local heating and cooling plans in Estonia
Summary
What is the status of the transposition of Art 25.6(EDD) and its implementation ?
The transposition work has not started. Current framework for district heat planning needs to be expanded and readjusted in Estonia to cover the provisions of EED article 25.6.
Estonia has a legislative framework established favourable to the development of efficient district heating networks while Estonian municipalities have a legal mandate to regulate the spatial distribution of district heating through their spatial planning. Municipalities are however not obliged to develop strategic spatial heating and cooling planning documents as such. A comprehensive support framework has been established to support local authorities to expand efficient district heating systems but remains mostly limited to supply-based solutions. Capacities to develop local heating and cooling plans are currently restricted by their human resource constrains, while access to energy-related geodata is well progressed.
Detailed assessment
The legal framework and the obligations
Estonian municipalities have a large mandate for heat planning, which however remains voluntary and biased towards the supply of district heating.
Overview of the legal frameworks per governance level
| National | Estonia’s main energy and climate objectives are enshrined in its National Energy and Climate Plan submitted in 2019. The draft update, submitted in 2023, sets the renewable energy source target for the heating sector to 63 %, and with indicative energy efficiency targets. More precise measures to increase the share of renewable energy in the heating and cooling sector is currently under preparation, according to the draft update. Since 2015-16, all Estonian local governments have drafted Local District Heating Development Plans for 10 years onward (Kaugküttevõrgu Arengukava or Soojamajanduse arengukava in Estonian). Those development plans are published : https://www.riigiteataja.ee/jaotused.html?tegevus=&jaotus=KOV.KOV2.KOV2_3&avatudJaotused=..KOV.KOV2&suletudJaotused=&jaotusedVaikimisiAvatud=&leht=1&kuvaKoik=false&sorteeri=&kasvav=true |
| Local | The District Heating Act, implemented in 2003 with numerous amendments, governs the production, distribution, sale and the planning of district heating. Since 2016, the law grants local governments the authority to regulate the provision of energy services within their territories in their spatial development plans (§ 5). Through this law, local authorities can determine ‘district heating regions’ where district heating or heating converted from non-fuel and renewable energy is mandatory for all consumers. This provision aims to encourage the expansion of district heating in densely populated areas, ensure new consumers and incentivise heat suppliers and grid operators to improve efficiency and increase the share of renewable and waste heat. A district heating region is determined by a feasibility analysis and complemented with a heat development plan, which must ensure efficient heating supply for the districts and prioritise the use of renewable and waste heat sources. This plan is developed for each district heating region by the municipality in collaboration with the thermal operator, which also involves participation by the public during its preparation. The heat development plan must be approved by the local council, and must be made available to the public. |
The support framework
A comprehensive support framework has been developed for district heating planning, but will need reinforcement
In Estonia, significant technical and organisational support has been provided to local authorities and other actors to expand and improve the efficiency of district heating. The government offers technical guidance and templates for standardised heating development plans, with active assistance from the organisations the Estonian Power and District Heating Association (EJKÜ) and the Association of Estonian Cities and Municipalities (AECM). This support is however mainly restricted to supply-related solutions, while spport to strategic and integrated energy planning remains limited. The Environment Investment Center allocates national and EU funds for heating projects which may be used for the planning phase. Estonian local auhorities are currently constrained by staffing shortages to carry out heat planning, and are hence in large need for larger human resources and training for integrated strategic heat planning. Estonia however performs well regarding access to energy-related geodata to local authorities, with readily available access to detailed data related to the (spatial) structure of supply and demand of heat through national databases.
Provided Support
| Technical and organisational | 3/5 | Estonian local authorities receive technical support for assigning district heating regions and for developing heating development plans. The national government has developed technical guidelines and templates for heating development plans, aiming to ensure standardised and efficient approaches. Technical guidance and support to foster the development of district heating networks is provided by the Estonian government, the Estonian Power and Heat Association (EJKÜ) and the Association of Estonian Cities and Municipalities (AECM), and have facilitated the collaboration between municipalities, district heating system operators (DSOs), and other relevant stakeholders in these activities. However, the technical support framework for heating development plans remains largely limited to the supply of heating, and does not consider other technologies, energy refurbishment for buildings and other areas covered in strategic heating and cooling planning. |
| Financial | 3/5 | Estonia does not have a dedicated national budget line for heating and cooling planning. However, the Environment Investment Center operates special funding programs from the state budget, the EU Cohesion Fund, and the European Regional Development Fund (ERDF), which have been utilised for projects on heating related to the integration of renewable and waste heat sources and efficiency, where municipalities have received support covering up to 50% of the project costs. Similar support schemes have also been developed nationally, but remains limited to energy supply sources, and not targeted towards spatial planning. |
| Staff & skills | 2/5 | The staff allocated for energy planning in Estonian municipalities is limited, ranging from a fraction of a full-time equivalent advisor or manager for small towns up to two dedicated staff members for bigger cities. The preparation of heating development plans is mainly outsourced to the company running the service. EJKÜ and AECM provide recommendations and offer training sessions for municipalities and district heating companies on how to develop the projects and implement energy efficiency measures. Substantial investment in skills and training and in administrative capacities will be needed for strategic and integrated heating and cooling planning. |
| Access to data | 5/5 | Overall, Estonia has well developed data platforms, enabling local authorities access to essential data related to energy sources, energy demand for buildings, the technical and economic renewable energy potential, and energy infrastructures, including the spatial position of energy grids and remaining capacity. Elering is a data platform featuring an interactive map that offers real-time access with updated detailed data on the production, distribution and consumption of electricity and gas. Most of the data about the renewable energy sources potential is available at the regional level, but for larger municipalities, it is usually available at the city level. Full information about buildings, including their heating systems and Energy Performance Standards, is accessible through the Building Register of the Estonian Climate Ministry. |
