1. SWOT ANALYSIS South- Estonia region Estonian University of Life Sciences Martin Kikas Tartu Regional Energy Agency 13. of September 2011

2. South of Estonia Territory of 6 counties 90 municipalities 13 towns, 77 rural municipalities Area:15 533 sq.km Number of inhabitants 338 836 in

3. County areaforest area share of forest land share of agricultural land 1000 ha % Jõgeva County260,4126,948,736,3 Põlva County216,5115,753,534,9 Tartu County308,9117,137,938,5 … including City of Tartu--- Valga County204,7119,858,529,2 Viljandi County358,9171,947,929,8 Võru County230,5108,947,239 Total in Region 1579, 9760,348%34,5%

6. Production of power energy in Region of Tartu (2009) KütusMWh% Hydro1 022,70,8 % Nat. Gas15 255,312,6 % Peat, wood105 000,086,6 % TOTAL121 278,0100 % TOTAL production of electricity ca 9% of own consumption

7. Backround information Estonia national targets of Share of Renewable Energy Sources Reference year 2005Target year 2020 18 %25% 863 ktoe Directive 2009/28/EC promotion of use energy from renewable sources Compose national Renewable Energy Acton Plan

8. Regulations in Estonia National Laws related with energy 1.Sustainable Development Act 2.Electricity Act 3.Natural Gas Act 4.District Heating Act 5.LiquideFuel Act 6.Energy efficency of equipment Act 7.Construction (Building) Act

9. Regulations in Estonia- National development documents Sustainable Development Act Energy Development Plan 2020 Estonian Electricity Development Plan 2018 Energy efficency programm 2007-2013 Developement Plan of Oilshale 2008-2015 Development Plan to use of Biomas and bioenergy 2007-2013 Renewable Energy Acton Plan 2020

10. Energy action plans / strategies in region Energy action plans/ strategies have 18 municipalities of 90 Three of six counties have or composing energy startegies or plans Põlva County – Study of renewable resources (2006) Võru County - Energy Startegy ( started 2011) Tartu County - Enegy Strategy ( plan 2012)

11. Energy action plans / strategies in region One “regional” energy strategy: 4 municipalities from two counties ( 2 from Võru county and 2 from Põlva county) “Setomaa Common strategy for wider using of local renewable resources”

12. Why we need strategy? Eneregy startegy is (one possible) way or tool to improve welfare and sustainability of Community

13. Resource Converting to fuels Converting to energy distribution Consumption CASH FLOW (MONEY) Typical Energy chains ENERGY FLOW

14. Who gets profit in energy ? Money goes from consumers to … … supplier/ owner of resources and fuels, … supplier of energy (owner of energy production units) … owner distribution network Goal for community: get as much as possible bigger share (control) of this three units in energychain

15. SWOT analysis - STRENGHTS Availability of resources Well developed technology Possibility to involve private forestowners Possibility to make money Lot of experiences to process forest and wood Relatively cheap material (resource) Possibility to use residues and waste Independence Create local jobs Wider use of coppice( brush)lands Wood and forest processing will help rural areas

16. SWOT analysis - WEAKNESSES Lot of workforce for collecting/ processing of material Lot of workforce for burning Usage of fossil fuels for peak demands Awareness of forestmanagemnt is low Rising costs Higher cost compare with peat Renovation of energyplants from others fuels to wood is expensive Lack of resources Dificult to get and transport wood from forest/some cases/ Burning technologies are not enough efficient Technology development is expensive

17. SWOT analysis - OPPORTUNITIES Possibility to use wood in many types of fuels (firewood, pellets, chips etc) Boilers are available for wide range of power Good for small central heating systems Resource available from private sector More scientific Works on forestmanagement Using better sort of wood for our climate

18. SWOT analysis - THREATS Security of supply, small producers cant quarrantee of supply Raising demand of wood in others sectors and in neibourhood countries Using wooden fuel is more complicated compared to other fuels Market influences, raising price for wood Inflammable / risk for fire Lack of modrenization of technology

19. SWOT analysis- input for strategy Focus to issues what you can changes a.Use your STRENGHTS b.Improve your WEAKNESSES

20. SWOT analysis- input for strategy 1.Maximal and rational use of local resources (wood and forest) in local energy production 2.New technologies 3.Get as much as possible bigger share of energy value chain to the local community.

21. Type of fuel2009amountunitcost Coal €/t63,982th,t127 951 Peat €/t32,40104th,t 3 369 934 Peat briquette, €/t97,342th,t 194 675 Firewood € /tm21,79443th,tm 9 654 684 Woodchips, €/m³12,40330th,tm 4 091 624 Wastewood, €/m³8,12330th,tm 2 678 537 Nat. Gas, €/tuhat m³248,9471milj.m317 674 447 Oilshale €t251,2422th,t5 527 207 Light oil, €/t441,9511th,t4 861 440 Diesel, €/t755,82112th,t84 651 746 Gasolin €/t966,2866th,t63 774 494 Electricity, €/MWh59,441351669MWh80 340 272 TOTAL 276 947 011

22. Thank You for attention ! Martin Kikas Tartu Regional Energy Agency