Investor Presentaiton
11
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Energy security being assured beyond Russia
Diversified energy mix and reserves allow the phase out of all Russian energy imports
Imports of Russian natural gas to Estonia ended in April 2022. Estonia has
reduced natural gas usage (including replacing it with local shale oil) and set
up a natural gas strategic reserve to mitigate further risks
With a strong renewable energy sector and large oil shale reserves (and the
technology to process it into energy products), Estonian energy import
dependency is amongst the lowest in Europe¹
• Diversification efforts are already showing results, as Estonia can now
import LNG from the Lithuanian and Finnish LNG terminals. Estonia has
also built a backup location for the Finnish LNG terminal (based on a floating
storage and regasification unit)
For the 2021-22 season, subsidy schemes were established for all
household energy consumers and enterprises. For the 2022-23 season, the
government again provided subsidies for all household consumers
(electricity, gas, district heating)
Baltic Sea incidents in 2023 have impacted crucial regional infrastructure,
including the Balticconnector gas pipeline between Estonia and Finland, and
two communication cables. The Balticconnector gas pipeline was suspended
due to an unexplained pressure drop during a severe storm in October 2023.
As a result, Elering, the Estonian system operator, ensured uninterrupted
gas supply to Estonian consumers through Latvia. Investigations are
ongoing, but most probably the pipeline was damaged by an anchor of a
Hong Kong-flagged vessel. The pipeline is expected to be repaired by April
2024 subject to ice conditions of the sea. The full operational capacity of
the internet cable connecting Estonia and Sweden has been restored²
Energy import dependency (2022)³
Total energy supply by product (2022)
Source: Eurostat
Oil and petroleum Electricity
products
2%
Non-renewable
waste
1%
Peat and peat
products
0%
Natural gas
6%
Renewables
and biofuels
28%
2%
Russian energy import share diminishes4
1,500
1,000
500
Oil shale and
oil sands
61%
100%
80%
60%
40%
20%
80%
60%
40%
20%
0%
Sweden
Romania
Estonia
Latvia
Finland
Czechia
Denmark
Poland
Croatia
France
Slovenia
Hungary
Germany
Slovakia
Portugal
Lithuania
Belgium
Spain
Austria
0
2016
2017
2018
Source: Eurostat
Source: Eurostat
Note: (1) Eurostat; (2) This information is subject to change as investigations progress; (3) Share of total energy needs of a country met by imports; (4) Energy imports
include transit of energy to third countries
REPUBLIC OF ESTONIA
MINISTRY OF FINANCE
2019
2020
Natural gas (m. m3) (lhs)
Oil and solid fossil fuels (k. tonnes) (Ihs)
Oil and solid fossil fuels (% from Russia) (rhs)
Natural gas (% from Russia) (rhs)
2021
0%View entire presentation