Draft law amending the Energy Sector Organisation Act (574 SE) – First Reading

Total Speeches: 72

Membership: 15

Agenda Duration: 1h 19m

AI Summaries: 72/72 Speeches (100.0%)

Analysis: Structured Analysis

Politicians Speaking Time

Politicians

Analysis

Summary

The draft law amending the Energy Sector Organisation Act, initiated by the Isamaa faction, was discussed at first reading. The draft’s focus was the suitability of the current 100% renewable energy target within Estonia’s energy policy and its feasibility by 2030. Isamaa's wish was to reduce the scope of this target, proposing a reduction in the share of renewable energy to 42% of total final consumption, at least 40% of final electricity consumption, and at least 63% of final heat consumption, as well as a minimum share of 14% of renewable energy in the transport sector. The debate was introduced by a previous amendment, adopted in 2022, which considered the 100% renewable energy share and highlighted the complexities and economic costs of its implementation. Another challenge was maintaining European Union law and industrial competitiveness, as well as ensuring the financial viability of energy sector development and network upgrades and a balanced organization of the development of production capacity.

Decisions Made 1
Collective Decision

Bill 574 is rejected upon its first reading. The bill is removed from consideration. The vote result: 45 in favor, 10 against; there were no abstentions.

Most Active Speaker
Mart Maastik
Mart Maastik

Fraktsiooni mittekuuluvad Riigikogu liikmed

Mart Maastik (Isamaa faction) – a more concentrated position; the most active speaker at the session, is more widely represented and leads almost all discussions regarding the input and economic viability of the bill.

Aseesimees Arvo Aller
20:37:10
AI Summary

As the seventh item on the agenda, the draft bill to amend the Energy Economy Regulation Act, draft No. 574, initiated by the Isamaa faction, will be considered in its first reading, with Mart Maastik, a member of the Riigikogu, as the presenter.

Mart Maastik
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
20:37:24
AI Summary

Mart Maastik claims that the 2030 target of 100% renewable energy is unrealistic and reminiscent of a rah-rah economy, and offers realistic targets: renewable energy at least 42% of total energy consumption, electricity 40% and heat energy 63%, as well as 14% of the energy used in transport, emphasizing the need to preserve competition and economic resilience.

Aseesimees Arvo Aller
20:43:56
AI Summary

The vice-chairman invited the audience to ask questions and asked Peeter Ernits to take the floor.

Peeter Ernits
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
20:43:59
AI Summary

Peeter Ernits recalls the green fever and the storytelling about impact assessments in connection with the law that has been enacted, and asks whether retrospective impact assessments have been carried out and whether there is a rush toward a wet dream.

Mart Maastik
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
20:44:44
AI Summary

The landscape emphasized that impact assessment cannot rely on goals based on unrealistic, emotional, or ideological grounds, and must set realistic, partially achievable renewable energy targets, because if the wind does not blow or the sun does not shine, we still need electricity and the entire demand cannot be met by renewable energy.

Aseesimees Arvo Aller
20:46:30
AI Summary

The vice-chairman Arvo Aller invites Jaak Aabi to speak.

Jaak Aab
Jaak Aab
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
20:46:31
AI Summary

Jaak Aab asks in the committee why Isamaa supported the 100% target in the autumn of 2022 and why it has now been reduced to 40%, and what the considerations were at that time.

Mart Maastik
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
20:47:19
AI Summary

The landscape recalls that in coalition negotiations they were aiming to achieve a 100 percent transition to Estonian-language education and 100 percent renewable energy; concessions were made, and now, while in opposition, he hopes that Jaak will support a sensible bill and rectify the mistake that was made.

Aseesimees Arvo Aller
20:48:21
AI Summary

The deputy chair Arvo Aller asks Priit Sibul to speak.

20:48:23
AI Summary

Priit Sibul admits that he made a mistake by supporting a 100% transition, and emphasizes that such an unconditional goal must not become the sole truth of Estonia's energy policy, and asks whether other criteria were discussed, for example consumer prices and the economy's impact on electricity prices.

Mart Maastik
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
20:49:17
AI Summary

Mart Maastik criticizes the coalition's calculations related to the offshore wind farm as unrealistic, because they do not take into account additional costs such as the construction of power lines and other expenses, and calls for a realistic energy policy, because Estonia's economy must not be endangered in the name of climate obligations, and Estonia's contribution to reducing CO2 emissions is relatively small when considering the global context.

Aseesimees Arvo Aller
20:52:30
AI Summary

The vice-chairman Arvo Aller asks Toomas Uibo to speak.

Toomas Uibo
Toomas Uibo
Profiling Eesti 200 fraktsioon
20:52:31
AI Summary

Toomas Uibo emphasized that although Estonia could produce 100% of its consumption with renewable energy, one must account for the days when the wind doesn’t blow and the sun doesn’t shine, in order to maintain competitiveness, and as an example, he brought up a furniture manufacturer whose goods, produced using coal-based electricity, must be considered in the context of selling them in Sweden.

Mart Maastik
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
20:53:26
AI Summary

Mart Maastik expresses skepticism toward the rhetoric of green energy, notes that if the cost of production is very high, cheaper goods from China are bought, and questions of energy sources do not change consumer behavior — the green craze will pass.

Aseesimees Arvo Aller
20:54:42
AI Summary

The deputy chairman Arvo Aller turns to Reili Randi and asks her.

Reili Rand
Reili Rand
Profiling Sotsiaaldemokraatliku Erakonna fraktsioon
20:54:44
AI Summary

Reili Rand noted that the Reform Party has been held hostage by the Social Democrats, and Isamaa has experienced the same plight, and now she asks what Isamaa's plan is to ensure security of supply, the competitiveness of the economy, and affordable electricity, given that Estonia has an annual capacity shortfall of about 3 TWh.

Mart Maastik
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
20:55:51
AI Summary

Mart Maastik said that 100% renewable energy is unrealistic and requires dispatchable energy, because the grid cannot absorb all renewable energy at once, and government obstacles to building onshore wind farms and expensive storage solutions threaten the operation of the energy system.

Aseesimees Arvo Aller
20:59:19
AI Summary

The vice-chairman Arvo Aller invites Reili Randi onto the stage.

Reili Rand
Reili Rand
Profiling Sotsiaaldemokraatliku Erakonna fraktsioon
20:59:22
AI Summary

Reili Rand emphasizes that socialism and social democracy are two different things, and discusses why Estonia could not follow the Nordic model, where cheap electricity and a livelihood are provided, if Isamaa plans to direct the economy and state development more toward the former Eastern bloc.

Mart Maastik
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
21:00:18
AI Summary

Maastik notes that, due to the social democracy in Sweden and the Nordic countries, energy prices are cheap, because they have hydroelectric power, which we in Estonia, unfortunately, do not have.

Esimees Lauri Hussar
21:01:35
AI Summary

The chair thanks and asks Toomas Uibo to take the floor.

Toomas Uibo
Toomas Uibo
Profiling Eesti 200 fraktsioon
21:01:36
AI Summary

Toomas Uibo noted that China has two goals — to reach the peak of carbon emissions before 2030 and to achieve carbon neutrality by 2060 — and pointed out that in 2023 China installed as many solar panels as the entire world combined, and finally asked whether anyone's data were wrong.

Mart Maastik
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
21:02:37
AI Summary

Maastik noted that although China is building many wind farms and solar panels, it is at the same time adding new coal-fired plants to balance the dispatchable energy supply, and although China produces a large share of the world’s renewable energy components, it is not a model for others to follow.

Esimees Lauri Hussar
21:03:39
AI Summary

Chairman Lauri Hussar invites Aivar Kokk to speak.

Aivar Kokk
Aivar Kokk
Profiling Isamaa fraktsioon
21:03:40
AI Summary

Aivar Kokk points to China as an example of combining renewable energy and coal, and asks what one should think about building a large number of wind farms around Hiiumaa, if the support is so large.

Mart Maastik
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
21:04:09
AI Summary

The landscape says that Reili Rand is from Hiiumaa; the Hiiumaans have long opposed offshore wind farms, but they want to place them on a neighboring island, and it is said in return that the neighbor is important.

Esimees Lauri Hussar
21:04:48
AI Summary

The chair, Lauri Hussar, thanks and notes that the debate has already been directed at how large someone's circle of friends is, but …

Mart Maastik
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
21:04:52
AI Summary

The people of Saaremaa are very successful.

Esimees Lauri Hussar
21:04:53
AI Summary

Chairman Lauri Hussar mentions cooperation with the people of Hiiumaa.

Mart Maastik
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
21:04:56
AI Summary

The speech emphasizes the cooperation between the people of Hiiumaa and Saaremaa.

Esimees Lauri Hussar
21:04:57
AI Summary

It is a pleasure to hear, and Henn Põlluaas is invited to take the floor.

Henn Põlluaas
Henn Põlluaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
21:04:59
AI Summary

Henn Põlluaas refers to the British Supreme Court's decision on the binary nature of biological sexes, recommends, if necessary, turning to the Supreme Court and asking whether dealing with energy from 100% renewable sources is realistic, and urges the controversial utopists to put some common sense into their heads.

Mart Maastik
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
21:06:03
AI Summary

Mart Maastik says that he will not speak on gender issues and has no intention of lingering in this debate, and there is no need to go to court, because soon the commission's representative Mario Kadastik will come, who speaks from a completely different angle and will bring the truth to light.

Esimees Lauri Hussar
21:06:31
AI Summary

Chairman Lauri Hussar announced that Mario Kadastik cannot come yet, because there are still questions, and he asked Jaak Aab.

Jaak Aab
Jaak Aab
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
21:06:34
AI Summary

Jaak Aab noted that in Estonia in the coming years it is necessary to increase electricity generation capacities to cover the deficit, and although there is talk of about a 60% share of renewable energy, the 40% cap must not limit opportunities, and it must be clearly stated which energy generation capacities and under what conditions they should be developed in the coming years.

Mart Maastik
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
21:07:20
AI Summary

Mart Maastik emphasizes a realistic energy policy: by 2030 renewable energy must account for at least 42% of total final consumption and at least 63% for heating; the remainder should be covered by dispatchable energy, and a coalition-independent golden mean must be found, using the current oil shale reserves until decisions are made.

Esimees Lauri Hussar
21:10:03
AI Summary

The chair thanks the presenter, notes that the questions have ended, and introduces Mario Kadastik, a member of the Riigikogu's Economic Committee, who will give us an overview of the discussions that took place in the committee.

Mario Kadastik
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
21:10:28
AI Summary

Mario Kadastik described in the committee the discussion that took place regarding the draft bill, emphasizing that the goal of 100% renewable energy is unrealistic and that storage and dispatchable capacities are necessary, and that the government did not support lowering such a target level that would reduce production capacity and increase dependence on imported electricity, and the committee decided to put the draft on the agenda for April 16 and to reject it at the first reading.

Esimees Lauri Hussar
21:14:21
AI Summary

The chair thanks, notes that the audience has questions, and asks Peeter Ernits to answer.

Peeter Ernits
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
21:14:25
AI Summary

Peeter Ernits asks where the certainty comes from that the 100% target can be achieved without the consequences arising from price and satisfaction, referring to the missing impact assessments, the growing distrust of the state, and the opposition to wind energy both offshore and onshore.

Mario Kadastik
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
21:15:26
AI Summary

By 2030, onshore wind farms and solar parks would cover 100% of electricity. There is a need for closer cooperation between local communities and developers and to address some questions and risks; otherwise, a standstill in planning could threaten the target, but at present the situation is not dramatic and solutions can be found.

Esimees Lauri Hussar
21:18:05
AI Summary

Chairman Lauri Hussar turned to Mart Maastik and said: "Please."

Mart Maastik
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
21:18:08
AI Summary

Mart Maastik claims that raising the target to 40% would hinder the development of production capacities, and that both a low electricity price and the government's subsidy guarantee do not provide real security — one of these claims is not true.

Mario Kadastik
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
21:19:06
AI Summary

Kadastik explains that the electricity market is a regulated margin market, where capital costs are not included in prices, and a persistently low price may not allow investments to be recouped; therefore reforms in Brussels are needed to ensure the functioning of the entire market and the recovery of capital costs.

Esimees Lauri Hussar
21:22:22
AI Summary

The chairman Hussar invited Priit Sibul to take the floor.

21:22:24
AI Summary

Priit Sibul emphasized that although the law sets a 100% target by 2030, the coalition lacks a clear plan to achieve it, and in the future legal provisions, including tax laws, may be creatively interpreted, and the aim of the draft is not to violate the law, but he asks whether we will stay with the utopian goal.

Mario Kadastik
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
21:23:23
AI Summary

Kadastik stressed that, although others claim that a 100% target is not achievable, in his view it is attainable and reasonable within five years, and if after a few years we see failures in the plans, the deadline or alternatives can be discussed, but the ambition must not be lowered and the law must still be followed.

Esimees Lauri Hussar
21:24:12
AI Summary

Chairman Lauri Hussar asks Mart Maastikut to come and speak.

Mart Maastik
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
21:24:14
AI Summary

Mart Maastik claims that the stock market system does not operate on the basis of a free-market economy, and prices can be raised high due to artificial intervention, and he condemns the goal of achieving 100% within five years as an ideological and economically risky plan that requires additional funding and makes prices expensive, while pointing to billions of investments in offshore wind farms and the issue of subsidies, although wind energy could also be produced without subsidies.

Mario Kadastik
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
21:25:25
AI Summary

Kadastik emphasized that in the electricity market we must sit calmly and discuss the limits of subsidies and competition, because more renewable energy brings cheaper electricity to the final consumer; the maximum amount of subsidies is about 200–250 million euros over 12 years, and if someone enters the market with an offer in which the subsidy is not desired and the margin is zero, they will win and crowd out others; offshore wind farms need a review of the European Clean Industry Directive, and this directive could create opportunities so that the overall society-wide savings in electricity prices exceed the cost of paying for support.

Esimees Lauri Hussar
21:27:56
AI Summary

Chairman Lauri Hussar thanked his colleagues Mart and Mario and informed them that the Riigikogu café is open until the end of the session and perhaps even after, and this is the first opportunity for them to discuss the topic, but we have more questions, Andres Metsoja, please.

21:28:10
AI Summary

Rumor has it that two larger onshore wind farms (Sopi-Tootsi and Saarde) have been built against the market without subsidies, and Enefit Green's plan to buy back its shares is causing confusion in securing returns, and it is asked how other market participants will be able to do this if they do not have dispatchable capacity behind them.

Mario Kadastik
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
21:29:13
AI Summary

Summary: they emphasize that smaller players do not determine the final price and their profit depends on the price range and the timing of capital withdrawal, for large parks prices may be set, and the last entrant to the market may experience zero profit.

Esimees Lauri Hussar
21:31:05
AI Summary

The chairman Lauri Hussar thanked and asked to invite Andres Metsoja to perform.

21:31:06
AI Summary

The speaker notes that subsidies for renewable energy promise a price drop, but in reality someone pays for it—either taxpayers or state intervention—and, in his view, it's a business trick that also applies when wind energy has already been on the market for a long time.

Mario Kadastik
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
21:32:14
AI Summary

Mario Kadastik said that in the functioning of the market it is possible to add a small amount of capacity to the market to reduce very large price spreads and to cover the necessary quantity, as a result peak prices and average prices could fall by hundreds of euros per megawatt-hour.

Esimees Lauri Hussar
21:32:54
AI Summary

Speaker Lauri Hussar thanked the presenter, stated that there were no more questions, opened negotiations, and invited Isamaa faction colleague Aivar Koka to the Riigikogu's podium.

Aivar Kokk
Aivar Kokk
Profiling Isamaa fraktsioon
21:33:19
AI Summary

In his presentation, Aivar Kokk notes that electricity prices have not risen at all, despite claims about wind energy, and that the drivers behind price increases are Latvia's third high-voltage line, shortages of LNG terminals, and delays caused by inter-ministerial disputes, and he emphasizes that renewable energy does not cover 100% of energy demand, and that the draft does not guarantee full renewable energy coverage, but rather realistic production and pricing policy.

Esimees Lauri Hussar
21:37:53
AI Summary

Chairman Lauri Hussar asks that three extra minutes be given.

Aivar Kokk
Aivar Kokk
Profiling Isamaa fraktsioon
21:37:54
AI Summary

Aivar Kokk said that subsidies for renewable energy are unnecessary, that the electricity price is actually around 49.3–49.7 euros per MWh, and that we should use local resources (pellets, firewood) for old oil shale-fired boilers, keep the CO2 quota under control, invest in dispatchable electricity, and, if necessary, discuss the use of nuclear energy in cooperation with Sweden.

Esimees Lauri Hussar
21:42:01
AI Summary

The chairman Lauri Hussar thanks Aivar Kokk.

Aivar Kokk
Aivar Kokk
Profiling Isamaa fraktsioon
21:42:03
AI Summary

The speech discusses two different prices, and we'll probably keep arguing.

Esimees Lauri Hussar
21:42:07
AI Summary

Lauri Hussar thanked Aivar Kokk and invited Jaak Aab to deliver a speech from the Riigikogu podium on behalf of and with the authority of the Social Democratic Party faction.

Jaak Aab
Jaak Aab
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
21:42:24
AI Summary

To ensure Estonia's energy security and reliability of supply, in the coming years we must increase renewable energy production, short-term storage, and dispatchable capacities, because consumption in 2024 exceeded the amount of energy produced, and although connections with neighboring countries may in the future level out prices, we have no other option in the near future but to develop new production capacities.

Esimees Lauri Hussar
21:46:57
AI Summary

They ask for three more minutes.

Jaak Aab
Jaak Aab
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
21:46:59
AI Summary

Jaak Aab said that although the goal of 100% renewable energy is important and one must look at the whole energy cocktail and find a balance between different electricity capacities, the Social Democratic Party's faction does not support Isamaa's draft and agrees with the Economic Committee in its rejection, because with the universal package consumers and businesses actually paid tens of millions of euros more than the stock package cost at that time.

Esimees Lauri Hussar
21:48:58
AI Summary

Chairman Lauri Hussar, on behalf of the Eesti 200 faction, asked that his colleague Toomas Uibo be allowed to deliver a speech before the Riigikogu.

Toomas Uibo
Toomas Uibo
Profiling Eesti 200 fraktsioon
21:49:10
AI Summary

Toomas Uibo criticized Isamaa's proposal to reduce ambition, stressed the need to move toward cheaper electricity and to account for the costs of long-term subsidies, illustrating this with the example of a litre of milk.

Esimees Lauri Hussar
21:51:59
AI Summary

Many thanks – the negotiations have become very lively, but we cannot conclude, because Helir-Valdor Seeder appeals that his positions were voiced in the preceding remarks and asks for the opportunity to respond.

21:52:23
AI Summary

Helir-Valdor Seeder said that he and others were repeatedly criticized and he stressed Isamaa's desire to fix the price for the universal service, which would ensure that the consumer price would not be higher than the stock exchange price, but the Social Democrats did not support it.

Esimees Lauri Hussar
21:53:45
AI Summary

The chair, Lauri Hussar, ended the negotiations and announced that the leading committee's proposal to postpone the first reading of Bill No. 574 would be put to a vote.

Esimees Lauri Hussar
21:57:03
AI Summary

Dear colleagues, the proposal received 45 votes in favour and 10 against, there were no abstentions; Bill 574 was rejected and withdrawn from the proceedings, and today’s Riigikogu session has ended.