SWOT ANALYSIS

South- Estonia region

Estonian University of Life Sciences

Martin KikasTartu Regional Energy Agency

13. of September 2011

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

County

area forest areashare of forest

land

share of agricultural

land1000

ha 1000 ha % %Jõgeva County 260,4 126,9 48,7 36,3Põlva County 216,5 115,7 53,5 34,9Tartu County 308,9 117,1 37,9 38,5… including City of Tartu - - -  Valga County 204,7 119,8 58,5 29,2Viljandi County 358,9 171,9 47,9 29,8Võru County 230,5 108,9 47,2 39

Total in Region1579,

9 760,3 48% 34,5%

3 425 567 MWh;

48%

2 180 076 MWh;

31%

1 475 651 MWh

; 21% heat

fuel for transportpower

COAL0%

PEAT,4%

Peat0% FIRE

WOOD

12%

WOODCHIPS & WAST

E19%

NGAS10%

OILSHALE OIL3%

LIGHT OIL2%

DIESEL 19%

GASOLINE12%

ELECTRICITY 19%

Production of power energy in Region of Tartu (2009)

Kütus MWh %

Hydro 1 022,7 0,8 %

Nat. Gas 15 255,3 12,6 %

Peat, wood 105 000,0 86,6 %

TOTAL 121 278,0 100 %

TOTAL production of electricity ca 9% of own consumption

Backround information

Estonia national targets of Share of Renewable Energy Sources

Reference year 2005 Target year 2020

18 % 25%863 ktoe

Directive 2009/28/EC promotion of use energy from renewable sources

Compose national Renewable Energy Acton Plan

Regulations in Estonia

National Laws related with energy

1. Sustainable Development Act2. Electricity Act3. Natural Gas Act4. District Heating Act5. LiquideFuel Act6. Energy efficency of equipment Act7. Construction (Building) Act

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

bioenergy2007-2013

Renewable Energy Acton Plan 2020

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)

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”

Why we need strategy?

Eneregy startegy is (one possible) way or tool

to improve welfare and sustainability of Community

Res

ourc

e

Con

vert

ing

to f

uels

Con

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ing

to

ener

gy

dist

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ion

Con

sum

ptio

n

CASH FLOW (MONEY)

Typical Energy chains

ENERGY FLOW

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

SWOT analysis - STRENGHTS

Availability of resourcesWell developed technologyPossibility to involve private forestownersPossibility to make moneyLot of experiences to process forest and woodRelatively cheap material (resource)Possibility to use residues and wasteIndependence Create local jobsWider use of coppice( brush)landsWood and forest processing will help rural areas

SWOT analysis - WEAKNESSES

Lot of workforce for collecting/ processing of material Lot of workforce for burningUsage of fossil fuels for peak demandsAwareness of forestmanagemnt is lowRising costsHigher cost compare with peatRenovation of energyplants from others fuels to wood is expensiveLack of resourcesDificult to get and transport wood from forest/some cases/Burning technologies are not enough efficientTechnology development is expensive

SWOT analysis - OPPORTUNITIES

Possibility to use wood in many types of fuels (firewood, pellets, chips etc)Boilers are available for wide range of powerGood for small central heating systemsResource available from private sector More scientific Works on forestmanagement Using better sort of wood for our climate

SWOT analysis - THREATS

Security of supply, small producers cant quarrantee of supplyRaising demand of wood in others sectors and in neibourhood countriesUsing wooden fuel is more complicated compared to other fuelsMarket influences, raising price for woodInflammable / risk for fireLack of modrenization of technology

SWOT analysis- input for strategy

Focus to issues what you can changes

a. Use your STRENGHTS

b. Improve your WEAKNESSES

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.

Type of fuel 2009 amount unit costCoal €/t 63,98 2 th,t 127 951

Peat €/t 32,40 104 th,t 3 369 934Peat briquette, €/t 97,34 2 th,t 194 675Firewood € /tm 21,79 443 th,tm 9 654 684Woodchips, €/m³ 12,40 330 th,tm 4 091 624Wastewood, €/m³ 8,12 330 th,tm 2 678 537Nat. Gas, €/tuhat m³ 248,94 71 milj.m3 17 674 447Oilshale €t 251,24 22 th,t 5 527 207Light oil, €/t 441,95 11 th,t 4 861 440Diesel, €/t 755,82 112 th,t 84 651 746Gasolin €/t 966,28 66 th,t 63 774 494

Electricity, €/MWh 59,44 1351669 MWh 80 340 272

TOTAL 276 947 011

Thank You for attention !

Martin KikasTartu Regional Energy Agency