Extensive use of oil shale is the unique and defining quality of the Estonian energy system. The oil shale sector accounts for 4% of Estonian GDP and places Estonia among the most energy independent countries of Europe. These benefits, however, come with an environmental cost. Over the coming decades, Estonia must continue to balance the domestic economic and security benefits of oil shale with its increasing international environmental obligations.
Extensive use of oil shale is the unique and defining quality of the Estonian energy system. The oil shale sector accounts for 4% of Estonian GDP and places Estonia among the most energy independent countries of Europe. These benefits, however, come with an environmental cost. Over the coming decades, Estonia must continue to balance the domestic economic and security benefits of oil shale with its increasing international environmental obligations.
This analysis examines current trends in Estonian oil shale utilization. Particular attention is paid to likely sources of disruption to oil shale use and the compatibility of continued oil shale use with national and EU environmental targets. The goal of the current analysis is twofold: first, to present a baseline forecast for future oil shale use, and then to recommend policy changes to balance environmental obligations, energy security, and economic benefit in light of rapid and often significant changes in the global energy context.