- Shall contribute to increase the supply of clean renewable energy

- Shall contribute to increase the supply of clean renewable energy
Selskapsstruktur
1% Class A shares
99% Class B shares
Municipalities in
Buskerud
Buskerud County Council
VARDAR AS
HYDROPOWER
Uste Nes AS
ENERGISELSKAPET
BUSKERUD
BIOENERGY
Hønefoss
Fjernvarme AS
Øvre Eiker
Fjernvarme AS
WIND POWER
NORWAY
Vardar Boreas AS
WIND POWER
ABROAD
Vardar Eurus AS
REAL ESTATE
Vardar Eiendom
AS
Wind power abroad comprises Vardar Eurus
NEFCO
Vardar AS
VARDAR EURUS AS
Estonia
Lithuania
Latvia
Management
Investments in renewable energy since establishment in 2004;
windpower, biogas, technology
Cooperation with the Estonian company Freenergy OÜ
10 operating windparks producing 340 GWh renewable energy pr year
5 windparks under construction, and Projects under developement
4 Energia OÜ
Overview of Renewable Energy Sector and the Company
May 2011
Content
Overview of 4energia
Baltic energy market
World energy outlook
„Electric power is everywhere present in unlimited quantities and can drive the
world's machinery without the need of coal, oil, gas, or any other of the common
fuels.“
- Nikolai Tesla
5
Overview of 4Energia
6
4E group ownership structure
Solarcom 25%
development
construction
operating
fund management
Atradius 25%
25%
trading
balancing provider
25%
Investors
Freenergy
90% Vardar A/S
33.7% EBRD
10% NEFCO
66.7% Estonian private investors
Management
Vardar Eurus
SPVs
Biogas 5%
Wind 90%
Technology
development 5%
7
Structure of 4Energia group
Estonia
4Energia
No empleyees 13
100%
95%
51%
40%
Latvia
Lithuania
Baltics
Estonia
4Energia SIA
4Energia UAB
(3)
Nordic Power
Management (7)
Empower 4Wind (13)
Electricity trading
Wind farm S&M
Development, O&M
The leading wind energy developer and operator in the Baltics
8
Activities of 4energia group
Development
Construction
Operation
Financial
Trading
choosing a suitable location for the Wind Farm, incl. measuring the wind and other procedures in order to
ensure sufficient capacity of the Wind Farm for producing energy
conducting the proceedings for building permits of the Wind Farm
operations related to the right to use the land under the Wind Farm
operations related to the network access of the Wind Farm
conducting bids related to the equipment of the Wind Farm
project management of the construction of the Wind Farm, incl. exercising
general control and supervision
management of the production process of the Wind Farm (incl. monitoring, maintenance, discovery and
elimination of defects
conclusion of insurance contracts
Investor reporting
feasibility study of the Wind Farm
presentations to financial institutions and other persons
finding resources for realisation of the Wind Farm Project, incl. mapping of possible financial
institutions, conducting negotiations for organising the financing and introducing design documentation
and information memorandum
conducting contract negotiations necessary for the realisation of the Wind Farm Project
trading of electricity incl forecasting, export, tendering, balancing etc
balance provider in Estonian market, offering balance management services to customers
representing and consulting electricity producers and related businesses in their production purchase and
sale activity
9
Experienced team
foto
Martin Kruus
(CEO of 4energia)
foto
Kalle Kiigske
(CEO of Freenergy)
foto
Andrus Zavadskis
(Technical Director)
Education:
Tallinn Technical University - Thermal Engineering
Previous employment:
Eesti Energia, Director of Business Unit of Renewable Energy. Main responsibility was to establish and run
power plants using renewable energy sources – wind, hydro, biomass
Ministry of Economic Affairs, Department of Management of State Companies
Estonian Privatization Agency, Project Manager for IPO’s
Main accomplishments:
Renovation of Estonian biggest hydro power plant – Linnamäe HPP
Building of Estonian first wind farm – Virtsu wind farm
Several feasibility studies and project management about CHPs
Education:
Estonian Business School – Banking and Financial Management
Previous employment:
United Partners Group, Pan-Baltic investment bank, Partner, responsible for merchant banking and
investments
AS Hansa Capital – leading asset-based finance company in the Baltics, Russia and Ukraine with total
assets over EUR 1,7 billion, Hansa Capital is the industry’s largest company in Eastern Europe and among
top 50 in Europe, Member of Board and Head of Factoring and Trade Finance Several positions in Factor
Chain International (Amsterdam, the Netherlands) - Member of the Communication Committee, Member of
the Internal Audit
Education:
Tallinn Technical University - M.Sc. Electrical Engineering, additional study in Aalborg University, Denmark
Previous employment:
Estonian Transmission System operator OÜ Põhivõrk, Analyst in Dispatch Centre
Siemens Power Transmission and Distribution department, Project Manager in high voltage (10 kV – 330
kV) substation turnkey building
Main accomplishments:
Construction of Harku substation (end-station for Estlink cable)
Certificate of A-competence in all voltage levels from September 2002
Project Management IPMA-C level certificate
4Energia employs 14 professionals in Estonia and Lithuania
10
Wind portfolio under 4energia management
Pakri
EST Pakri Tuulepark OÜ
In operation
18,4
53 000
FE/VE/
Other
10/90
Virtsu I
EST Roheline Ring Tuulepargid OÜ
In operation
1,2
3 440
75/25
32,70%
Virtsu II
EST Roheline Ring Tuulepargid OÜ
In operation
6,9
16 163
75/25
26,70%
Sudenai
LIT
In operation
14
35 566
50/50
29,00%
Esivere
EST Roheline Ring Tuulepargid OÜ
In operation
8
20 863
75/25
29,80%
ViruNigula
EST Viru-Nigula Tuulepark OÜ
In operation
24
64 400
0/100
30,60%
Vanaküla EST Vanaküla Tuulepark OÜ
In operation
9
24 020
0/100
30,50%
Tooma I
EST Tooma Tuulepark OÜ
In operation
16
44 851
50/50
32,00&
Virtsu III
EST Roheline Ring Tuulepargid OÜ
In operation
6,9
18 073
75/25
29,90%
Mockiai
LIT
In operation
12
38 205
50/50
36,30%
Subsidiary
Wind Park
Status
Vejo Elektra UAB, Lariteksas
UAB
Eurolanas UAB, Iverneta UAB
MW
MWh/y
Total in operation 116,4
Capacity
318 581
Under
construction
8
22 426
50/50
32,00%
Paldiski
EST Paldiski Tuulepark OÜ
Under
construction
26,4
89 684
50/50
37,10%
Aseri
EST Aseriaru Tuulepark OÜ
24
71 061
50/50
33,80%
Ciuteliai
LIT
Under
construction
Under
construction
40
112 916
Dundaga LAT Enercon SIA
Under
development
50
130 000
50/50
29,70%
Kunda
EST Oceanside OÜ
Under
development
6
19 237
100/0
36,60%
Silute
LIT
Silute Vejo Projektai UAB
Under
development
100
287 490
50/50
32,80%
Silale
LIT
Vejo Elektra UAB, Lariteksas
UAB
Under
construction
14
40 846
50/50
33,30%
Hiiumaa
EST Hiiumaa Offshore Tuulepark Planning
OÜ
45/45/10
43,00%
Total onshore construction/development 268,4
700
Total offshore development
700
TOTAL
1 085
* - FE – Freenergy, VE – Vardar Eurus
50/50
32,97%
773 660
2 636 760
Viru-Nigula
Aseri
Hiiumaa
offshore
Tooma
Esivere
Virtsu II
Virtsu I
Virtsu III
Dundaga
Tooma II EST Tooma Tuulepark OÜ
Naojoji Energija UAB
Kunda
Paldiski Pakri
Vanaküla
32,90%
Sudenai
Ciuteliai
Mockiai
Silute
Silale
2 636 760
3 729 001
32,75%
•
•
4energia operating wind farm
4energia wind farm under development
11
Electricity generation by 4E wind farms, GWh
400
300
301,7
200
Forecast
211,3
139,9
100
110,9
60,5
0
2007
2008
2009
2010
2011
Plan to reach 300 GWh in electricity generation in 2011
12
Nordic Power Management
JV with the company’s management
NPM offers services in all activities related
to the purchase and sale of electricity
Balance provider and a manager of energy
portfolios for its customers
Currently portfolio under management:
about 120 MW
Largest non 4E related customers are Fortum
Tartu, Estonian hydro power plants
Traded 441 GWh in 2010
10 000
EUR th
Founded in April 2008
Financial performance
8 000
8 422
6 000
4 000
5 729
2 000
0
2009
2010
Sales
Sales split, 2010
Wind farms accounted for 40% of traded
electricity
NPM employs 7 professionals with
knowledge and long-time experience in
financial and energy sector
Key employees with Eesti Energia and
Hansabank background
Great business potential as Estonian
electricity market fully opens in 2013
14
Empower 4Wind
JV with Empower, one of the largest service
providers in Finland and the Baltic countries
in the field of energy and
telecommunications
EUR m
Sales forecast
1,2
1,1
0,9
0,9
Service and maintenance of wind farms
Troubleshoot
Planned maintenance
0,6
1,0
0,7
0,3
Construction, installation and reparation
Repair parts
Sales in 2010 reached EUR 687 m
Strong growth in sales expected as new
winds farms will be constructed/ operated
Forecast 450 MW in the market by 2013
Company employs 13 professionals
0,0
2010
2011
2012
2013
Sales split by client, 2010
WinWind
47,7%
4Energia
50,8%
Nordex
1,2%
Other
0,2%
Empower
0,2%
15
Wind energy projects
16
Pakri Wind Park 18,4 MW
Company:
Pakri Tuulepark OÜ
Shareholders:
90% Vardar Eurus AS
10% Freenergy AS
Capacity:
18,4 MW
(8 x Nordex N90, 2,3 MW hh 80m)
Annual production:
53 000 MWh/year
Total investment:
€ 22,4 M (€1,22 M per MW)
Status:
in operation since 2005
Viru-Nigula Wind Park 24 MW
Company:
Viru-Nigula Tuulepark OÜ
Shareholders:
100% Vardar Eurus AS
Capacity:
24 MW
(8 x 3 WinWind WWD3 3 MW, hh 90m)
Yearly production:
57 960 MWh/year
Total investment:
€ 26,1 million (€1,09 M per MW)
Launching:
2008
17
Virtsu I Wind Park 1,2 MW
Company:
Shareholders:
Capacity:
Yearly production:
Total investment:
Status:
Roheline Ring Tuulepargid OÜ
75% Freenergy AS
25% Vardar Eurus AS
1,2 MW
(2 x Enercon E44, 600 kW, hh 63 m)
3 440 MWh
€ 1,2 million (€1,03 million per MW)
Operating since 2002
Virtsu II Wind Park 6,9 MW
Company:
Shareholders:
Capacity:
Yearly production:
Total investment:
Status:
Roheline Ring Tuulepargid OÜ
75% Freenergy AS
25% Vardar Eurus AS
6,9 MW
(3 x Enercon E70, 2,3 MW hh 85 m)
16 163 MWh/year
€ 7,8 million (€1,13 million per MW)
Operating since IV Q 2008
Esivere Wind Park 8,0 MW
Company:
Shareholders:
Capacity:
Yearly production:
Total investment:
Status:
Roheline Ring Tuulepargid OÜ
75% Freenergy A
25% Vardar Eurus AS
8,0 MW
(4 x Enercon E70, 2,0 MW, hh 85 m)
20 863 MWh/year
€ 8,7 million (€1,08 million per MW)
Operating since 2005
18
Sudenai Wind Park 14 MW
Company:
UAB Lariteksas, UAB Vejo Elektra
Shareholders:
50% Vardar Eurus AS
50% Freenergy AS
Capacity:
14,0 MW
(7 x Enercon E82, 2,0 MW, hh 78 m)
Yearly production:
35 566 MWh/year
Total investment:
€ 20,7 million (€ 1,48 million per MW)
Launching:
4Q 2008
Mockiai Wind Park 14 MW
Company:
UAB Eurolanas, UAB Iverneta
Shareholders:
50% Vardar Eurus AS
50% Freenergy AS
Capacity:
12,0 MW
(6 x Enercon E82, 2,0 MW, hh 108 m)
Yearly production:
38 205 MWh/year
Total investment:
€ 23,3 million (€ 1,9 million per MW)
Launching:
4Q 2010
19
Planned Hiiumaa offshore wind park
Depth
10-30 m
Distance from
shore
5-15 km
Geology
Sand, gravel,
clay, limestone
Hiiumaa
Example of geological gross section
20
Biofund projects
21
Biomass concepts
Possible uses of biomass
Solid biomass (wood)
Wet biomass
Anaerobic digestion
Biogas
Steam boiler / CHP
Electricity
1/3
Heat
2/3
Gas engine
Electricity
1/2
Heat
1/2
Capacity range
2 – 100 MWel
0,2 – 2 MWel
Raw material
collection area
Max 100 km
Max 10 – 20 km
Heat consumers
Raw material suppliers
Critical partners
22
4e Biofund targets
4e Biofond is the investment company developed
by 4energia to enhance the development of
projects of power production in biogas plants and
combined heat and power (CHP) plants
There are extensive natural resources (wood,
peat, arable land) as well as recently introduced
favorable legislation (feed-in tariffs) in Estonia for
developing and operating biogas plants and CHPs
Baltic states total
Biogas 20 MW
CHP 85 MW
Estonia
Biogas 6 MW
CHP 25 MW
Currently there are 6 projects in pipeline with total
capacity of 15 MW and total equity investment
requirement of 15 M EUR
Full value chain from the property of land and
control over fuels (wood, peat, biogas) to sales of
heat and power is being developed
Latvia
Biogas 7 MW
CHP 30 MW
If successful, then the business concept will be
used also for Ukraine and Russia
Total target capacities for Baltics is over 100 MW
Lithuania
Biogas 6 MW
CHP 30 MW
23
Oisu biogas plant
Company:
Oisu Biogaas OÜ
Shareholders:
60% Estonia OÜ
40% 4E Biofond OÜ
El. capacity:
0,7 MW
Heat capacity:
0,74 MW
Heat production:
5 952 MWh/y
Total investment:
€ 2,6 MEUR
Status:
launching 2Q 2010
Oisu biogas plant’s views and position plan
Vinni biogas plant
Company:
Vinni Biogaas OÜ
Shareholders:
50% Askoterm OÜ
50% 4E Biofond OÜ
El. capacity:
1,1 MW
Heat capacity:
1,7 MW
Heat production:
6 587 MWh/y
Total investment:
€ 3,4 MEUR
Status:
launching 2Q 2010
24
Technology projects
25
4E Technology fund
Need for balancing and reserve power, MW
1400
Growth potential of wind energy sector in Estonia
New Estonian Energy Plan draft sets the share of wind
energy to be increased to 900 MW by 2018.
1200
1000
800
600
Leads to need for local balancing power solutions.
The development of related technologies and services
market is very important.
400
200
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Balancing power stations
Peak load reserve stations
Target sectors
Renewable energy technology (including design and
production of prototypes);
Development and production of renewable energy storage
and balancing technologies;
20% of the investment amount can be invested to listed
renewable energy and technology companies.
Projects
Offshore wind measurements – SODAR (sound detection
and ranging) system installed near Hiiumaa
Service team for wind parks – to provide S&M for operating
wind parks
Energiasalv – hydro pumping power station to provide
balance power incl to Hiiumaa Offshore in cooperation with
Maardu Graniidikaevandus
Development of fuel cell and hydrogen production
Production of small scale wind turbines - new concept to
reduce significantly visual and noise pollution.
26
Main challenges of the energy sector
Power capacity renewal in EU25
Existing
900
Additional demand
800
700
600
500
400
300
200
100
0
2000
2005
2010
2015
2020
2025
2030
World oil prices, 1980-2030 (2 scenarios)
200
180
High Price
Reference
160
140
120
100
80
60
40
20
0
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
$ nominal/barrel
Climate change
27
Global renewable energy market
28
EU targets for the energy sector
Reductions in energy-related CO2 emissions
Individual country targets for renewable energy (2006)
Target 2020 in%
Nuclear
CCS
Renewables & biofuels
Share of renewable energy 2006 in%
Sweden
Energy efficiency
Gigatonnes
Latvia
Finland
Austria
Portugal
Denmark
Slovenia
Estonia
Romania
Lithuania
45
35
550
450
Policy
Policy
Scenario Scenario
9%
14%
23%
30
54%
40
25
France
Spain
20
2005
Greece
Germany
Italy
Ireland
2010
2015
2020
Reference Scenario
550 Policy Scenario
450 Policy Scenario
2025
2030
Bulgaria
United Kingdom
Poland
Slovak Republic
Netherlands
Hungary
Cyprus
Czech Republic
Belgium
Luxembourg
0
10
20
30
40
50
60
29
Electricity generating costs: offshore vs. other technologies
Electricity generation costs EUR per MWh
140
140
Offshore
Installed cost
3MEUR /MW
120
100
Range
Onshore
Installed cost
1,3MEUR /MW
Range
80
CO2
cost
60
Range
CO2
cost
Onshore
Installed cost
1,7MEUR /MW
120
100
80
60
Typical cost of gas and coal
generation, 70EUR /MWh
40
40
Lowest
price
20
Lowest
price
Lowest
price
Nuclear
Gas
0
Coal
20
6
7
8
9
Mean annual wind speed at hh, m/s
0
30
Source: Wind Power Monthly
Global wind energy market
Leading wind markets, cumulative MW installed
Wind power installed in Europe by the end of 2009, (cum. MW)
35 159
USA
25 777
Germany
Sweden
1 560
25 104
China
Norway
431
19 149
Spain
10 926
India
France
4 492
UK
4 051
Portugal
3 535
Denmark
3 465
0
10 000
Denmark
3 465
Rep. of
Ireland
1 260
20 000
2009
30 000
40 000
Portugal
3 535
UK
4 051
Spain
19 149
Finland
146
Russia
9
Estonia
142
Latvia 28
Lithuania
91
Netherlands
2 229
Poland
Germany
725
Belgium
25 777 Czech
Ukraine
563
Republic
94
Luxembourg
192 Slovakia 3
35
Austria
Hungary
France
Switzerland 995
201
Romania
3 404
18
14
Croatia
28
Italy
Bulgaria
4 850
177
Greece
1 087
Turkey
801
2008
31
Source: EWEA, Global Wind Energy Council
Baltic renewable energy market
32
Energy sources in Baltics
Three distinctive modes of electricity generation represented on a large scale
Comments
Projected demand and generation capacities
Origin of energy sources: Estonia – local, Latvia –
local hydro, imported electric energy and natural
gas, Lithuania – imported
10 000
Shutdown of Elektrenai Lithuanian Power Plant
8 000
7 000
6 000
MW
Although the new plants are planned to be
developed, these will require huge investments and
will not be probably completed before 2016
2 000
Importance of the issues of “energy security” and
“energy independence” is increasing in the Baltics
Source: Freenergy, Eesti Energia
Hydro
47%
3 000
Natural
gas
35%
Shutdown of old energy blocks in Narva
power plants (Estonia)
Other
3%
Imports
30%
Gas
20%
4 000
After the decommissioning of INPP Lithuania relies
heavily on local gas PP and electricity import
Gap to
be filled
5 000
Additionally, 1 500 MW of capacities will be based
on natural gas imported from Russia, being
therefore with limited reliability and having upwards
price pressure
Hydro
3%
Other
3%
Imports
59%
1 000
Peak demand
2015
2014
2013
2012
2011
2010
2009
2008
0
2007
In Latvia electricity is generated mostly by three
Daugava hydro power plants
Oil
shale
91%
Shutdown of Ignalina NPP (Lithuania)
Major shutdown of amortized energy plants:
Lithuania decommissioned Ignalina nuclear plant in
2009, Estonia to shut down 75 % of capacity of oil
shale power plants in 2013
Estonian oil-shale based electricity production,
albeit with relatively low energy efficiency, is a
dominating energy source in the country
Gas 4% Wind
1%
Other
4%
9 000
Total annual consumption of electric energy:
Estonia – 7 TWh/year, Latvia – 6 TWh/year,
Lithuania – 12 TWh/year, total about 25 TWh/year
There will be gap between production and
consumption capacities in Baltic states in the
amount of 3 000 MW by 2015
Electricity generation split
Installed capacity
Note: Generating capacities to be constructed in the future are not
taken into account, as no definite plans on the time of their completion
exist yet
Note: Electricity generation split i for Lithuania after Ignalina NPP
decommission is estimated based on experts’ opinion
Energy System Integration
Baltic power systems are connected to each other and Russia and Byelorussia
Since the end of 2006 Estlink (350 MW) connects Estonian and Finnish power systems, allowing to exchange
the electricity between Baltics and Nordpool
Planned new interconnections:
2010 Fennoscan 2: Finland-Sweden 500/800 MW
2011-2013 Estlink2, 650 MW
2013-2016 Lithuania-Poland, 1000 MW
2015-2016 Lithuania-Sweden, 1000 MW connection allows entering to German electricity market
Possibly additional Latvia-Sweden and/or Estonia-Sweden links will be built
1000 MW
NordPool market:
ca 50 EUR/MWh
Finland
800 MW
650 MW
Existing grid
connection
350 MW
Sweden
Estonia
Baltic Sea
400 MW
1000 MW
Russia
Planned grid
connection
1000 MW
2000 MW
1000 MW
Lithuania
700 MW
Russia
Access to German
electricity market:
ca 60 EUR/MWh
Source: COWI report 2005
2000 MW
1000 MW
34
Electricity prices
Power prices are to converge with Finland Nord Pool area
Comments
Electricity price forecast in Estonia by International Energy Agency
100
Since April 2010 Estonia partly liberalized its electricity market: clients
with annual consumption exceeding 2 GWh should buy electricity in
the open market
80
Consumers with annual demand of more than 2 GWh
constitute approximately 1/3 of the total market
EUR/MWh
Electricity prices in the Baltics are among the lowest in the EU on the
back of fully amortized production facilities of power plants
60
40
Full market liberalization is scheduled in 2012
20
Since April 2010 Estonia became a part of Nord Pool Spot, largest
electrical energy market in the world
0
Estlink connects Estonia to the Nordic power market, offering
Baltic participants a liquid market and a trustworthy reference
price
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
European electricity prices for domestic users (with taxes) in 2009
Export to Finland has been very active: most of the time
Estilink grid connection is used at the maximum available
capacity
300
EU average EUR
173.5/MWh
200
100
0
105,3101,194,5
Ireland
Norway
Germany
Portugal
Spain
Italy
Denmark
Austria
Czech Republic
Luxembourg
Slovenia
Belgium
Sweden
Malta
Finland
EU
Slovakia
Croatia
France
UK
Poland
Hungary
Cyprus
Turkey
Latvia
Greece
Lithuania
Romania
Estonia
Bulgaria
Electricity prices on Nord Pool’s1 spot market remain mainly
influenced in the long run by the level of water in the reservoirs of the
Norwegian and Swedish hydropower plants2
400
EUR/MWh
Estonian electricity prices should converge with the Finnish level,
especially after construction of undersea grid connection EstLink 2
500
35
Source: International Energy Agency, Eurostat
1) Nord Pool is the trade name of the Nordic power exchange where electricity is traded on a day-ahead basis
2) It is estimated that around 76% of observed variation in Nord Pool spot price is explained by Nordic hydrological balance
Wind conditions
Distribution of full load hours in Europe (80 m hh onshore, 120 m hh offshore
Source: EEA, 2008
The best wind conditions in Europe lie on Norwegian and British isles’ coasts
Wind conditions in the coastal areas of Baltics are comparable with those on the coast of Spain and the inland of France and Germany
(average wind speed 5.5-6.5 m/s)
The most attractive wind areas in Baltics are comparable with those of inland of Denmark, the leading wind energy country in Europe
36
EU targets drive RES electricity development
2010: Additional RES capacity to be installed in Latvia to fulfill EU targets
eee consumption and RES share
Electricity
15 000
Estimated renewable electricity generation in 2010*
50%
49,3%
2010
Estonia
Latvia
Lithuania
Hydro
40,5%
GWh
12 000
40%
Installed capacity, MW
5
1 536
115
21
2 800
400
0,24%
38,66%
3,52%
Installed capacity, MW
140
28
153
Generated electricity, GWh
350
74
309
3,96%
1,02%
2,71%
65
10
31
400
60
100
4,53%
0,83%
0,88%
Total RES share
8,72%
40,51%
7,11%
EU target share
5,10%
49,30%
7,00%
+3,62%
-9,79%
+0,11%
0
637
0
Generated electricity, GWh
11 376
Share in electricity consumption
9 000
30%
8 839
7 242
6 000
20%
Wind
Share in electricity consumption
Biomass
3 000
10%
8,7%
7,1%
7,0%
5,1%
0
Generated electricity, GWh
Share in electricity consumption
0%
EST
LAT
Installed capacity, MW
LIT
Projected gross electricity consumption 2010, GWh
Projected RES share in 2010
Difference with EU target
EU target for RES share in 2010
Need for additional renewable
electricity to meet EU targets (GWh)
* 4E indicative scenario based on projected operational capacities in 2010
Estonia due to usage of Narva PP partly as a biomass PP and due to installation of wind capacities and Lithuania due to
additional wind capacities are expected to fulfill 2010 EU targets for RES share in gross electricity consumption
Installation of new RES capacities in Latvia is minimal; despite the expected decrease in electricity consumption Latvia
needs approximately 637 GWh of renewable electricity to reach EU targets
Source: 4E, Eurostat, countries’ statistical offices. Gross electricity consumption for 2010 is projected on the same level as in the period 12m2008-11m2009
37
EU targets drive RES electricity development
2020 targets: lots of new capacities to be installed
sss
Final energy
consumption and RES share
80 000
RES share in final energy consumption targets for 2020
45%
40%
40,0%
70 000
35%
60 000
Estonia
Final energy consumption, GWh
29,9%
25,0%
69 034
25%
40%
23%
10 153
23 739
15 878
4 209
9 760
6 871
Biomass new istalled capacity*, MWel
100
270
200
Biomass electricity from CHP 2020, GWh
500
1 350
1 000
Biomass heat from CHP 2020, GWh
500
1 350
1 000
Wind new installed capacity*, MW
783
1 864
997
Wind total installed capacity 2020, MW
860
1 892
1 051
1 920
4 898
2 621
Biogas new installed capacity*, MWel
10
40
30
Biogas energy 2020, GWh
98
360
270
Hydro new installed capacity*, MW
0
2,5
10
Hydro electricity 2020, GWh
0
10
40
1 130
1 687
1 787
RES in final energy consumption, %
Growth in RES compared to 2008, GWh
25%
New installed capacities* to fulfill EU 2020 targets
4E’s scenario
20%
17,5%
30 000
15,6% 15%
20 000
69 034
57 739
59 347
49 637
40 612
33 968
10%
0
5%
0%
EST
LAT
LIT
Final Energy consumption 2008, GWh
Final Energy consumption 2020, GWh
Lithuania
59 347
30%
23,0%
40 000
Latvia
40 612
RES energy, GWh
50 000
10 000
2020
Wind electricity 2020, GWh
RES in Final energy consumption 2008, %
RES in Final energy consumption 2020, %
Biofuels increase in consumption 2020*, GWh
* New compared to 2008
According 4E’s indicative scenario around 3,600 MW of wind energy capacity and 650 MWel of biomass/biogas
energy capacity should be additionally installed in the Baltics to meet EU 2020 targets
Most of growth potential in renewable energy in the Baltics lies in the development of wind energy in Latvia and
Lithuania and biomass CHP in all three Baltic countries
Source: 4E indicative scenario, countries’ statistical offices, Eurostat
38
Legal framework
Estonia
Latvia
Lithuania
Feed-in premium
Feed-in tariff
Feed-in tariff
53.7
100
87
Market (~40 EUR/MWh)
Market/ GridCo
GridCo
Yes
Yes
No
Imbalance responsibility
Hourly prices
set by TSO
0.8/1.2
coefficients1
Generators not
responsible
Final price2, EUR/MWh
93.7
100
87
Support type
Subsidy, EUR/MWh
Can sell to
Balance responsibility
Notes:
1) Deficit imbalance price 1.2 x fixed price; surplus imbalance price 0.8 x fixed price
2) Approximate resulting income of wind generator per each generated MWh in 2009 based on current market price and imbalance cost assessment for 20 MW wind park
MW
GWh/y
MW
MW
1200 2000
1000
Lithuanian wind energy capacity estimate
Latvian wind energy capacity estimate
Estonian wind energy capacity estimate
2000
Capacity, MW
Capacity, MW
Capacity, MW
1100
800
Capacity, MW (Estonian
Energy Policy estimate)
600
Cap (GWh/y)
1000
1600
1600
900
800
700
400
Capacity, MW
(Estimated according
to EU Climate
Pacage)
1200
800
800
600
500
200
Capacity, MW
(Estimated according
to EU Climate
Pacage)
1200
400
400
0
0
2018
2016
2014
2012
2010
2008
2006
2004
2002
2018
2016
2014
2012
2010
2008
2006
2004
2018
2016
2014
2012
2010
2008
2006
2004
300
2002
0
2002
400
Contacts
Martin Kruus
Kalle Kiigske
Chairman of the management board
Chairman of the management board
Nelja Energia OÜ (4energia)
Tel. +372 640 90 90
E-mail [email protected]
Freenergy AS
Tel. +372 640 90 90
E-mail [email protected]
Tor Ottar Karlsen
Johannes Rauboti
Chairman of the board
CEO
Vardar Eurus as
+47 97 16 59 08
E-mail: [email protected]
Vardar
+47 91 64 52 64
E-mail: [email protected]
4