Draft law amending the Electricity Market Act (555 SE) - First Reading
Session: 15th Estonian Parliament, 5th session, plenary session.
Date: 2025-01-22 22:26
Participating Politicians:
Total Speeches: 16
Membership: 15
Agenda Duration: 21m
AI Summaries: 16/16 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The submitted draft 555 is a draft law amending the Electricity Market Act, initiated by the Government of the Republic, with two main themes: 1) ensuring islanding capability, or the ability of the Estonian electricity system to operate independently while maintaining uninterrupted external connections, and 2) accelerating the management of electricity storage and consumption, including the introduction of a consumption factor. The aim is to keep electricity prices under control, increase energy supply reliability, and reduce the costs and risks caused during peak price periods. More specifically, provisions are made for the development of storage to enable the storage of energy at a low price indicator when renewable energy is added, and its use during periods of higher prices when consumption increases. The introduction of the net metering principle and the clarification of the consumer's bill will provide greater clarity in billing, while technical proposals are made regarding accounting models and the remuneration logic for balancing power capacities. The draft also includes the insertion of a new regulatory framework to help ensure at least 1000 MW of dispatchable capacities for a dispatchable and stable electricity system, and which creates mechanisms to strengthen market functionality and energy security. Overall impact and economic indicators show that the measures associated with islanding capability and the storage and consumption factor will benefit consumers in the long term, but electricity bills may increase in the short term, which is still estimated to be lower compared to the cost of the measure. Implementation dates have been set, and provisions regarding the double taxation of storage will come into force next year, net metering will be introduced on August 1, 2026, and general technical preparations and billing changes cautiously address the clear presentation of consumer debts and bill structure. Ultimately, the draft provides reassurance regarding energy supply and the opportunity to offer the use of lignite fuel in crisis situations, such as when the wind does not blow and the sun does not shine. Occasionally highlighted numerical impacts (e.g., the addition of 500 MW of storage) demonstrate potential price reductions and cost savings, contributing to the overall financial benefit for the consumer.
Decisions Made 4
The speaker is hereby appointed as the representative of the steering committee.
Include the draft on today's plenary session agenda.
First reading finished.
The deadline for submitting amendments is set for February 5th at 5:15 PM.
Most Active Speaker
The most active participant in this session was Rain Epler (member of parliament, other). He posed questions and, following the answers, emphasized different facets of the discussion and the need to accelerate preparations for island transport. His participation consistently gathered material and raised some questions concerning the frequently debated technical aspects.
Aseesimees Toomas Kivimägi
AI Summary
Next is the eighth item on the agenda: the Government-initiated bill to amend the Electricity Market Act, No. 555, with the first-reading presenter being Climate Minister Yoko Alender.
Kliimaminister Yoko Alender
AI Summary
Climate Minister Yoko Alender presents a draft bill that focuses on ensuring islanding capability, boosting electricity storage and demand management, and, through them, keeping electricity prices under control and increasing energy security.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi thanks you and invites Rain Epler to ask a question.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler notes that although solar energy production is becoming more profitable and the growth of intermittent generation is making grid services more expensive, he asks why we pre-develop or prefer such a narrow sector that is not beneficial to society.
Kliimaminister Yoko Alender
AI Summary
Climate Minister Yoko Alender said that the electricity system must not put all eggs in one basket and that it should use diverse and affordable renewable energy sources (primarily solar and wind) together with storage, which the bill reasonably implements.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi asked Rene Kokk to speak.
AI Summary
Rene Kokk emphasises that oil-shale energy is still necessary and that the old well should not be shut down before the new one provides energy, and asks why the bill to disconnect from the Russian grid is still on the table today and why it could not be discussed last year.
Kliimaminister Yoko Alender
AI Summary
Climate Minister Yoko Alender said that Estonia is ready for islanding and can maintain frequency on its own if external connections are interrupted, using a 1000 MW oil shale electricity reserve and by procuring additional controllable capacities, and consumers do not need to do anything special this weekend, since crisis stocks are in place.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler noted that Estonia had not that long ago managed to cover all of its electricity demand and to export, but now, although it is said that things are getting cheaper, one must incur greater expenditures for the sake of a cheaper future, and he asked why in countries such as Denmark and Germany, where the share of green energy is large, the price of electricity remains high.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman, Toomas Kivimägi, asked Rain Epler to pose a second question.
Kliimaminister Yoko Alender
AI Summary
The briefing confirmed that Estonia has not purchased electricity from Russia since 2010, but electrons have moved to maintain balance, and we are ready to sever this connection and unite with Continental Europe, and it stressed that dependence on fossil fuels and the associated prices and security aspects require Europe to create an independent, clean, and affordable electricity system, which this bill serves.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanks and announces that there are no more questions, and Mario Kadastik, a member of the Economic Committee, introduces the committee that guides the discussion and the decisions.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
In summary, the Economic Committee discussed the draft bill; the minister introduced it and answered questions about double taxation, dates, and the impact of islanding and the requirements of network companies; all questions were answered, and it was explained that the fee is shown as a separate line item to cover fixed costs and ensure competitiveness; it was decided to appoint the lead committee's representative as the speaker here, to bring the draft bill onto the plenary agenda today, and to finish the first reading by consensus.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanks, states that there are no questions, opens negotiations, and asks Anti Allast on behalf of the Social Democratic Party faction.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Honourable Chair, our party warmly welcomes this bill and I strongly support it, because the energy sector has had bottlenecks for years, production capacities are scarce, which pushes up prices, and although there is no real obstacle to electricity production from oil shale, the main constraint is actually market access, and for that we need support for our own manufacturing enterprises so that they can remain in the market, and to use islanding operation even in the absence of interconnections to ensure supply, which in turn promotes the economy and entrepreneurship and in the long term will bring prices down.
Aseesimees Toomas Kivimägi
AI Summary
Thank you very much. I am closing negotiations and I confirm that the first reading of Bill 555 has been completed, and the deadline for submitting amendments is February 5 this year at 17:15.