What’s holding back community energy in Estonia’s just transition region?

So what’s holding back progress? Is it a lack of awareness, mistrust or overly complex legislative processes? These questions formed the basis of a 2024 study conducted by Tallinn University of Technology, commissioned by the Estonian Green Movement as part of the LIFE RePower the Regions project, to explore the feasibility of community energy in Ida-Viru.  

Challenges in the region 

The study revealed a key challenge – many people struggle to see the benefits of cooperative energy production. Why join forces in a cooperative when individual energy production seems just as feasible? This attitude is largely due to the lack of positive local examples. Despite years of discussion about community energy in Estonia, success stories have mostly come from abroad, making them feel disconnected from the local reality. Participants in the study also noted that media coverage tends to focus more on obstacles rather than progress, reinforcing the perception that community energy remains a distant, theoretical concept rather than a viable opportunity. 

The study also highlights a major hurdle – the conflict between renewable energy development and national defence regulations. In Ida–Viru, solar energy projects of up to 50 kilowatts face fewer restrictions and can be installed throughout the region. However, larger solar parks exceeding this capacity are evaluated on a case-by-case basis, adding uncertainty to their potential development. Wind energy faces even more severe restrictions.  East of the Jõhvi–Iisaku line, wind turbines are completely banned due to their impact on national defence installations, further limiting the region’s renewable energy potential. 

There are also infrastructure challenges. The existing electricity grid was not designed with small-scale energy production in mind, which means that connecting to the grid often requires reinforcement and significant investment. This is an issue not only for developers but also for grid operators, who must find ways to make connections more cost-effective and accessible. 

There is also a lack of experts and leaders who can bring communities together and implement projects. As the region lacks a comprehensive plan and nationwide cooperation for establishing energy communities, progress has largely depended on enthusiasts and proactive local governments. In this respect, the municipalities of Alutaguse and Lüganuse have taken the first steps towards renewable energy. The Association of Local Authorities in Ida–Viru, who are also aware of the issue, are considering participating in energy community projects, but there are no concrete success stories yet for others to follow. 

In addition to these obstacles, the more challenging economic situation facing residents in the region and the lack of trust within the community are holding back the development of cooperative energy production. 

Opportunities 

Despite these challenges, the study highlights several unique advantages that position Ida-Viru as a potential flagship for community energy development. The county has a large amount of suitable land, including former industrial and oil shale mining sites, on which renewable energy production facilities can be built. In addition, the region has extensive historical expertise in the energy sector due to its long connection with oil shale energy. Not only that, the county is already home to established gardening and housing cooperatives that are essentially ready to function as energy cooperatives. With the right guidance and awareness, they could soon begin generating their own electricity. 

So why is cooperation within energy communities preferable to the individual approach? For a start, cooperative energy production allows costs and risks to be shared, storage solutions to be used more efficiently, and provides greater energy independence. For example, a community solar park with a shared storage system reduces the volatility of electricity prices and allows cheaper energy to be used when the sun isn’t shining – something that would be much more expensive and complex for individuals to manage on their own. In addition to the economic and environmental benefits, energy communities can provide social, health and educational benefits, such as strengthening community ties, raising awareness about energy use and production, and improving health by reducing air pollution, leading to fewer respiratory issues and other health problems. 

In countries where community energy production has been successfully introduced, targeted national and regional measures have been crucial in supporting its development for example in Poland, where various EU funds, including REPowerEU, support the development of energy communities. In Estonia, although the region’s transition to renewable energy is seen as necessary and inevitable, it has yet to be prioritised and there are no specific measures in place to promote this shift, according to the study participants.  

For the sector to truly develop in Estonia, it is essential to raise awareness, simplify regulations, and offer more funding to communities. Especially in rural areas, community-based renewable energy projects could improve the well-being of residents, increase energy security, and promote economic stability. Estonia should seize this golden opportunity to follow examples where community energy has helped to build stronger and more independent communities. The transition to renewable energy is not just necessary in theory – now it’s time to put it into practice!