Opportunities for Cooperation between Estonia and ... - Valitsus

generators in the Baltic and Nordic countries at a disadvantage and could
jeopardize Estonia’s energy security.
The possibility of combining the Estonian and Finnish gas pipeline networks
has been studied at length. The envisaged two-way subsea Baltic Connector
pipeline would improve transmission security, give Finland access to the Latvian
gas reserves and permit the creation of a regional gas market. Considering the
current stage of the project, the connection is not likely to be constructed until
after 2015.
More than anything else, energy production in Estonia and Finland will be
affected by the continual increase in consumption and the carbon dioxide
emission ceilings imposed by the EU. For the time being, the only known
option to produce carbon-fee electricity at a competitive cost is nuclear
energy. Its long-term energy security is guaranteed by the large number of
nuclear fuel suppliers worldwide and the relative simplicity of the fuel transport
technology.
Considering the closure of the Ignalina nuclear power station in Lithuania in
2009 and the uncertainty surrounding the construction of a new nuclear power
station, the limitations imposed by the EU on the use of oil shale as a raw
material in energy production, and the lack of access to a secure long-term
supply of energy from abroad, the only realistic option left to Estonia is the
construction of a nuclear power station of its own.
As Estonia and Finland, after the laying of the Estlink 2 cable, will be part
of the same energy transmission system, a nuclear power station in Estonia
should be designed and developed as a joint Estonian-Finnish project. The
joint nuclear power station project of high technical standards should be able
to reconcile the business interests of the power companies with the long-term
energy security needs of the two countries, i.e., the interests of society.
Estonia could participate in the project to build the sixth nuclear reactor (OL4)
in Finland on a reciprocal basis, in which case Finnish electricity producers
could be given the opportunity to invest in new generation plants to be built in
Estonia. Potential projects could include the upgrading of the electricity works
in Narva and various projects related to renewable energy sources.
The idea of developing the Narva works is based on Estonia’s oil shale reserves,
i.e., the existence of a local energy source. With oil shale, one important
consideration is that its price is unaffected by world market prices. Aside from
the further investments in the new combustion technology developed for oil
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