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Opportunities for Cooperation between Estonia and ... - Valitsus

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shale, there is potential <strong>for</strong> making use of the Carbon Capture & Storage (CCS)<br />

technology, which is completely free of any carbon dioxide emissions. Later,<br />

the Narva works could serve as back-up stations <strong>for</strong> the nuclear power stations<br />

in both countries.<br />

The share of peat in energy production can be increased in both <strong>Estonia</strong> <strong>and</strong><br />

Finl<strong>and</strong>. Peat is a competitive fuel, primarily when used at co-generation plants<br />

generating electricity <strong>and</strong> district heat. The units at the Narva electricity works<br />

can be fired by peat <strong>and</strong> oil shale simultaneously. Finnish energy producers<br />

have extensive experience of using biofuels <strong>and</strong> peat in energy production <strong>and</strong><br />

working out various technological solutions. <strong>Cooperation</strong> <strong>between</strong> <strong>Estonia</strong>n <strong>and</strong><br />

Finnish energy producers in the use of peat may be extended internationally<br />

to include Latvia <strong>and</strong> Sweden. Additionally, the experiences gained by the Irish<br />

from the use of peat should be studied in detail.<br />

Joint investments in wind farms to be constructed in <strong>Estonia</strong> should be considered.<br />

Another potential area of cooperation is the creation of new technologies <strong>for</strong><br />

generating energy from wastes. Scientific research <strong>and</strong> innovation activities<br />

related to energy <strong>and</strong> its production should focus on feasible solutions that are<br />

also competitive elsewhere in the world.<br />

When <strong>Estonia</strong> <strong>and</strong> Finl<strong>and</strong> <strong>for</strong>m a single energy system region in 2013, it would<br />

be appropriate to contemplate the merger of the national grid companies OÜ<br />

Põhivõrk <strong>and</strong> Fingrid Oyj. <strong>Estonia</strong>’s 110–330 kilovolt grid is closely linked with<br />

other Baltic countries, <strong>and</strong> over the past ten years it has been substantially<br />

upgraded as far as the technical systems go. Co-management of the two<br />

companies would permit a more rational use of the power reserves of the two<br />

countries; the creation of a technological base <strong>for</strong> a single electricity market<br />

<strong>and</strong> purposeful development of the grids with a view to energy security. A<br />

joint grid company would make it possible to administer power transmission<br />

<strong>between</strong> <strong>Estonia</strong> <strong>and</strong> Finl<strong>and</strong> in the same way as transmission <strong>between</strong> the<br />

Nordic countries.<br />

<strong>Estonia</strong>n-Finnish cooperation in the energy sector will be successful if its<br />

objective is to give due consideration to the interests of the parties <strong>and</strong> achieve<br />

mutual benefits. Additionally, each individual joint project must be justifiable<br />

in its own right.<br />

Recommendations:<br />

• A joint <strong>Estonia</strong>n-Finnish study on the security of energy supply should be<br />

carried out to analyze the technical <strong>and</strong> political risks to the security of<br />

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