Draft law amending the Electricity Market Act (556 SE) – first reading
Session: 15th Estonian Parliament, 5th session, plenary session.
Date: 2025-01-22 22:48
Participating Politicians:
Total Speeches: 26
Membership: 15
Agenda Duration: 33m
AI Summaries: 26/26 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu discussed the draft law amending the Electricity Market Act, Bill No. 556, for its first reading. According to the Minister of Climate, Yoko Alender, the draft’s purpose is to expand the grid operator's obligation to develop the grid, in order to cautiously develop the electricity network, supporting the Riigikogu’s renewable energy target for 2030. The amendments fix uniform connection fees throughout Estonia (e.g., 12,000 euros/MVA in the 330 kV network), which should simplify the connection process for power generation developers and major consumers. Also, the possibility of building direct lines for major consumers is extended from 6 kilometers to 15 kilometers, to promote the development of energy-intensive industry. The costs of strengthening the grid will be shared equally between consumers and connection users in the future. During the debate, Rain Epler (EKRE) expressed concern about the reasonableness of the 100% renewable energy target and the impact of direct lines on network charges in other regions (e.g., Võrumaa). The representative of the Economic Affairs Committee, Mario Kadastik, confirmed that the draft law had been thoroughly discussed with market participants and the decisions to conclude the first reading were consensus-based. The first reading of Bill No. 556 was concluded. The last item on the agenda (Bill No. 530) remained unaddressed due to the absence of the presenter.
Decisions Made 2
Bill 556 has concluded its first reading.
The deadline for submitting amendments was set for February 5th at 5:15 PM.
Most Active Speaker
Rain Epler (EKRE) was the most active, submitting several questions to both the minister and the commission’s representative, and delivering a critical speech on behalf of his faction regarding the bill and renewable energy targets. Position: right.
Aseesimees Toomas Kivimägi
AI Summary
Dear colleagues, there are two points left; the ninth item is the first reading of Government-initiated bill no. 556 to amend the Electricity Market Act, and it is a pleasure to invite to the Riigikogu's speaking podium the climate minister Yoko Alender.
Kliimaminister Yoko Alender
AI Summary
The draft electricity market legislation expands the obligation to develop the transmission grid, makes connection charges uniform and predictable across Estonia, enables direct lines to large consumers, and shares the development costs between consumers and grid entrants to promote the growth of renewable energy and lower end-user prices.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanks the audience and invites questions, asking Rain Epler to answer.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler posed two questions: whether geopolitical developments and the goal of a 100% renewable energy target could affect our relations with our allies, and if Lasnamäe decides to use consumption close to the point of production, what impact that would have on the rest of Estonia's grid charges, for example for Võrumaa.
Kliimaminister Yoko Alender
AI Summary
Before the Riigikogu, Climate Minister Yoko Alender stated that Europe must harmonize and develop its energy systems, work closely with the United States and the European Union, ensure affordable electricity prices and a strong, well-connected grid, emphasizing that the goal of 100% renewable energy does not mean the need to stop producing other electricity, and that electricity exports and the development prospects of a clean electricity industry will bring benefits to the economy.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman, Toomas Kivimägi, turned to Mario Kadastik and asked him to speak.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kadastik asks, in the Lasnamäe context, why there must be a 15-kilometre limit on the endpoint line, when a large producer and consumer could cover 100% of it and production and consumption could go together.
Kliimaminister Yoko Alender
AI Summary
Climate Minister Yoko Alender emphasizes that Lasnamäe must not lose out on this, and although the planned direct line does not leave consumers without the main network, it is necessary to ensure the maintenance of the service frequency and the existing backup solution in case the direct connection does not work, which has been calculated and designed to be optimal.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi invited Rene Kokk to speak.
AI Summary
Rene Kokk said that smart entrepreneurs could create an energy community, and expanding direct-line capacity could in the future change municipal planning and the emergence of business sites, and he asked whether local governments are on board with this and will take it into account in their longer-term plans.
Kliimaminister Yoko Alender
AI Summary
Climate Minister Yoko Alender said that a direct line requires an agreement between the producer and the consumer and is not intended for individual consumers, and together with representatives from the Minister of Industry and Economy and with the involvement of local governments, potential industrial sites that are optimal from a network perspective will be reviewed, and taking into account the impact on nature, it is reasonable to prioritize developing industry in areas where this purpose has already been designated previously.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi asked Anti Allast to take the floor.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas asks the minister whether, during the discussion of the draft bill, it was heard that the grid charge for electricity sold directly to consumers should be significantly lower, and how in the future, if in some regions cheap electricity cannot be produced or there is no connection to a wind turbine, this will affect competition and business may move from region to region, and how the financing of these regions will be resolved in the future.
Kliimaminister Yoko Alender
AI Summary
The availability of affordable electricity lays the groundwork for regional development, and it makes sense for local authorities to develop capacity there; the cost of laying a direct line is borne by the large consumer, and it would not be reasonable to charge them for it, but other charges such as the excise tax and the frequency-maintenance charge still have to be paid, and although large consumers have a connection to the main grid and their volumes are smaller, they still contribute to the general fund.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi thanked and said that there are no more questions, and Mario Kadastik, a member of the Economic Committee, is presenting the discussion that took place in the leading committee and the decisions made there.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kadastik said that the draft was discussed in the Economic Committee, and the focus was on the 15-kilometre limit and the connection fee, where it was decided whether the fee would be fixed or based on a calculated fee and which was cheaper, and the retroactive impact was not discussed, and all decisions were by consensus, and he was also appointed as the representative of the lead committee, the draft was placed on the agenda, and the first reading was completed.
Aseesimees Toomas Kivimägi
AI Summary
Many thanks to you; Rain Epler split his questions into two parts this time, and now he has a question for Mr. Kadastik.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler posed a personal question to Mario about whether, under the current law, there is a reasonable objective to cover all consumption from renewable sources.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kadastik emphasizes that in the near future Estonia's energy consumption will come mainly from renewable sources, which will increase production and at certain moments the price falls, at others it rises, but the draft helps keep prices under control and is also useful for supporters of nuclear energy, because it gives the nuclear power plant the opportunity to join at a fixed price, paying half as much.
Aseesimees Toomas Kivimägi
AI Summary
Vice-chairman Toomas Kivimägi thanked, announced the opening of negotiations, asked Rain Epler, and represented the EKRE faction, hoping that the mandate exists.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler emphasizes that the rapid development of renewable energy does not guarantee cheap electricity, cites examples from Canada and the state of Michigan, and calls for a thorough review and amendments to the bill, recommending that the coalition remove the 100% renewable energy target from the laws.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanks and presents Jaak Aab on behalf of the Social Democratic Party faction, confirms the existence of the authorization and that a protocol will be written about it, despite the papers having gone missing.
AI Summary
Jaak Aab stressed that the draft laws strengthen the backbone grid, accelerate and facilitate connection, and enable large producers to obtain electricity directly from the producer via direct lines (for example, the Narva magnet factory), which helps develop the regions and balance renewable energy generation capacity with consumption, together with large investments and business support.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanks everyone, and on behalf of the Reform Party faction asks Mario Kadastik to take the floor.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kadastik said that joining a dedicated line is possible only if the consumer owns the dedicated line in the production unit, and for Lasnamäe this is not economically viable, since it would require separating or acquiring the existing network or constructing new lines, and ultimately the dedicated line must be maintained, and Elektrilevi distributes the costs across Estonia, therefore the use of small distribution networks is not usually profitable.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi ended the negotiations, announced that the first reading of Draft 556 had been completed and that the deadline for submitting amendments is February 5 at 17:15, and they reached the discussion on Leo Kunnas’s initiated Draft 530 to amend § 5 of the Local Government Council Elections Act, which was the last item on the agenda, but since the presenter could not be seen, the discussion cannot take place; the day is over, and he thanked the opposition for standing firm, hopefully tomorrow will be easier.