Estonia Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in estonia, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Estonia Renewable Energy Generation and Storage
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Overview

Estonia is one of the most energy independent countries in the EU due to domestically mined oil shale, which accounts for approximately 50 percent of the Estonian energy mix.

The government has committed to achieving climate neutrality by 2050 and has set a near-term goal of producing 80 percent of electricity from renewable sources by 2035. This policy landscape, combined with its goal of reducing dependence on imported fossil fuels, creates a favorable environment for investment in both generation and storage solutions.

Wind and solar power stand at the center of Estonia’s renewable transformation. Onshore wind projects already contribute meaningfully to the grid, while offshore wind in the Baltic Sea is emerging as a viable prospect. As intermittent renewable capacity grows, energy storage becomes critical for balancing supply and demand. Estonia’s relatively small grid makes it particularly sensitive to fluctuations in renewable generation, which opens space for a variety of storage technologies. Lithium-ion battery systems are already being tested to stabilize the grid, but there is also potential for longer-duration solutions such as flow batteries and emerging hydrogen-based storage. Hydrogen is gaining traction as Estonia looks to integrate surplus renewable generation with industrial demand and transportation.

The integration of digital technologies into energy systems further enhances market opportunities. Estonia’s reputation as a digital innovator provides a unique advantage in developing smart grids, demand response solutions, and decentralized energy systems.

Leading Sub-Sectors

Battery Energy Storage Systems & Grid-Scale Storage

This subsector is important because intermittent renewables like wind and solar create variability; large battery systems help smooth that, provide frequency regulation, help balance supply and demand, and support grid stability. Especially after the February 2025 Baltic grid desynchronization from the system linking Belarus, Russia, Estonia, Latvia, and Lithuania (BRELL), storage has become even more critical.

Opportunities

Information on government procurment opportunities in the energy sector are available on the EU Tenders Electronic Daily site. 

Resources

Estonian electricity generating company Eesti Energia
Estonian Wind Energy Association
Electricity and gas TSO Elering
Estonia’s offshore wind innovation hub
 

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