Minister of Energy and the Environment Andres Sutt (Reform) said that Estonia's energy system needs to be modernized no matter what. The most important thing is to ensure the future-proofing and crisis-proofing of the system so that the price impact on consumers is kept to a minimum.

"ENMAK 2035 provides a clear pathway to reducing dependence on imported fossil fuels while keeping the final price of electricity in our region competitive," Sutt said.

"Our ambitions must not be allowed to remain mere words on paper, but become reality. With the development plan, we are setting the priorities and principles for the promotion of Estonia's energy economy, which will serve as a basis for planning more detailed actions when implementing the plan."

Preparation of the development plan began in 2021. Preliminary analyses, a series of consultations and a strategic environmental assessment have now been completed.

The draft plan was open for public consultation until  August 29, eliciting around 340 proposals from stakeholders, businesses and ministries. The Ministry of Climate reviewed the comments and suggestions, adding to the draft plan accordingly so as to ensure greater clarity.

Guaranteeing a diversified generation portfolio has been placed at the heart of the development plan so that Estonia's electricity system is reliable and resilient at all times.

In addition to the optimal deployment of local sources of renewable energy such as wind and solar (including storage), sufficient dispatchable power must be ensured. New dispatchable power is needed because most of the existing dispatchable power is old and not competitive on the electricity market, but existing capacity must be kept operational until new capacity is established.

Along with generating capacity, it is equally important that energy networks be developed so as to guarantee even greater resilience in times of crisis. The physical protection and cyber-resilience of critical infrastructure is key to the functioning of modern energy systems.

The draft development plan aims for electricity prices in Estonia to reach a level below the average of the reference countries (Denmark, Latvia, Lithuania, Poland, Sweden and Finland) for all consumer groups (household and industrial alike) by 2035. Both the renewed generation portfolio in Estonia and strong external connections will contribute to achieving this.

In electricity generation, operating subsidies are being phased out. For establishing projects with greater longevity – such as offshore wind farms, a nuclear power plant or a water storage reservoir – long-term financing solutions with a maturity of at least 30 years are planned to ensure a market-based return on investment.

The transition to clean energy is one of the key objectives of the development plan. The ambition to reach 100 percent renewable electricity consumption remains, but this will be achieved on a market-driven basis at a time when technologies are competitive without operating subsidies, which is projected to be around 2030 and beyond.

ENMAK 2035 looks at the development of the energy sector more broadly than just electricity generation. For example, in the gas sector, the target is to increase the share of renewable gas to a third of consumption by 2035. In the district heating sector, the aim is to reduce regional differentials in the marginal price by modernizing district heating systems and gradually introducing new energy-efficient technologies like heat pumps and heat storage.

In the transport sector, a target of at least 26 percent of final consumption being clean energy by 2035 will be set, in line with the EU's commitment in this regard. The development of charging infrastructure and the promotion of alternative fuels will help to achieve this.

ENMAK 2035 is due to be submitted to the government for approval this December once it has been debated in the Riigikogu.

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