Blog entry

Estfeed Datahub: Powering Estonia’s digital energy future

A positive example of progress in this area is Estonia’s Estfeed Datahub, a platform that supports smart data sharing in the electricity market. Launched in September 2024 by Elering, Estonia’s national electricity and gas transmission system operator, this innovative tool not only increases market efficiency but also empowers individuals and communities to participate in the energy transition.

Smart data exchange for a more connected market

One of Estfeed’s main advantages is that it enables energy market participants to rapidly save and exchange information in a secure way. Estfeed’s users include network operators and manufacturers, management service providers, private-sector companies, individuals, and research institutions. Since April 2025, the platform has transitioned to a 15-minute data exchange cycle, making data exchange even faster.

Estfeed’s main purpose is to enable seamless data exchange within an open electricity market. To this end, it uses a central data warehouse that operates on the principles of ensuring fairness and transparency for all market participants1, as outlined in Elering’s data exchange explainer video.

Estfeed is designed to support fast switching processes and gives users access to energy and gas consumption data along with other useful information like weather forecasts and electricity prices2. Importantly, users retain full control over their data. It also facilitates data exchange between countries, supporting cross-border energy services.

By improving energy efficiency in this way, the platform helps to make energy consumption more affordable. This means both consumers and energy companies can make better-informed decisions based on accurate measurement data.

How does it work?

Estfeed Datahub collects data from electricity and gas metres, network operators, and energy producers. Consumers have the final say on which service providers they share their data with.

The platform then securely transmits the data. Once consent is granted, service providers gain access to the consumer’s metered data in the form of real-time consumption or hourly electricity usage. Finally, this information is transferred to machine-readable formats.

This infographic illustrates how the datahub operates:

What makes Estfeed so effective?

Estfeed is considered an example of best practice because it supports the development of new technologies and services in the energy market. It’s also a useful tool for energy communities and individuals who produce their own electricity. Encouragingly, similar data platforms are becoming more common across Europe.

But what makes Estfeed truly unique is its capability to share data beyond borders. By bringing together data sources, software solutions, and consumers in one hub, the platform is taking an important step towards improving energy efficiency and streamlining the integration of renewable energy sources.

Estfeed is a strong example of how digital tools can promote grassroots engagement and drive decentralisation. By giving users direct access to their energy data, platforms like Estfeed empower individuals to make informed choices and actively participate in the clean energy transition.

Beyond improving efficiency and encouraging innovation, Estfeed also makes this shift feel tangible and achievable. As digital infrastructure becomes more central to the energy system, innovative solutions like this are set to play an increasingly important role in bringing about a cleaner and more democratic energy future.

The EBRD’s first Impact Report: A welcome step, but does it tell the whole story?

The report replaces the EBRD’s Sustainability Report, which focused on what the EBRD did, rather than what it changed. Yet even the new format struggles to demonstrate how public investments are transforming lives, improving governance, or driving green and democratic transitions. The methodology still relies heavily on client-reported data and internal validation, with little evidence from the final beneficiaries and those most affected: workers, entrepreneurs and communities.

The lack of tools to measure impact on democratic institutions is striking, especially given the EBRD’s Article 1 mandate. United Nations Sustainable Development Goal 16, which focuses on fostering peace, justice and strong Institutions, receives the least attention. To address this shortcoming, we recommend that the EBRD include indicators on civic and citizen engagement as well as policy dialogue.

Some transparency wins are worth noting: the EBRD reports on its underperformance, referencing 24 projects that delivered less than 20 per cent of its objectives in 2024. It attributes this underperformance to causes like macroeconomic shocks, weak governance, early loan repayments, and compliance issues. Yet deeper insights into patterns categorised by country, sector, and risk are notably absent.

On the green transition, headline figures on projected carbon dioxide reductions from increased renewable energy capacity are encouraging, but there’s more than meets the eye. The EBRD’s investments in gas infrastructure, waste incineration, and forest biomass have not been considered. Some projects lauded for environmental gains, such as the electric trolleybuses scheme in Kyrgyzstan, haven’t even become operational.

The report is more concrete when reporting on human capital investments in skills development, gender-focused finance, and improved workplace standards. But transparency around financial intermediaries, used largely for women-in-business support, remains a challenge. Has funding truly advanced women’s economic empowerment, or just ticked boxes? The EBRD should track long-term indicators like gender wage gaps, cases of gender-based violence and harassment, and the representation of women in leadership roles at both corporate and community levels across all its investments.

Alarmingly, some projects praised for promoting inclusion, such as cotton farming in Uzbekistan, have instead led to the economic displacement of thousands of farmers. This underscores the urgent need for robust ex post impact assessments to capture the real outcomes of investments.

The report also notes that countries with the lowest ‘transition scores’, such as those in Central Asia and the southern and eastern Mediterranean region, are also the countries where the EBRD invests most heavily and expects the highest transition impact. Yet there is little clarity on how and whether the EBRD’s current approach to investment, policy dialogue, and technical assistance actually supports systemic change.

This first Impact Report is an important step. But it’s only the beginning. For future editions, the EBRD must sharpen its focus on outcomes that matter: inclusion, democracy, environmental integrity, and accountability. Because the true measure of impact isn’t what’s projected on paper – it’s what communities experience on the ground.

Serbia’s district heating crisis: Gas dependence fuels price volatility

The sector’s financial health has been deteriorating rapidly. In 2023, for the first time, Serbia’s entire district heating sector recorded losses amounting to EUR 10 million, according to a recent analysis. The sector’s liquidity has also plummeted, with working capital deficits reaching approximately EUR 202 million (RSD 23.7 billion) – the highest shortfall in the past five years. To keep heating services operational during the 2023/2024 winter season, the sector accumulated EUR 36.4 million in additional debt, primarily due to soaring gas prices, alongside politically driven overemployment and existing investment burdens. One of the critical issues facing the sector is its unbalanced energy mix, with fossil gas accounting for 77.7 per cent of all sources. More significantly, 90 per cent is imported. In May 2022, Serbia signed a three-year gas supply agreement with Russia – at a time when the EU was actively working to reduce energy ties with the aggressor state. Serbia’s decision to deepen its dependence on Russian gas was primarily driven by a desire to stabilise energy prices.

However, recent market developments have rendered the agreement largely ineffective, despite a new annex signed in May 2025. Although the contract sets a fixed price for gas, it caps annual volumes at 2.2 billion cubic metres, forcing Serbia to turn to the more expensive open market once the limit is exceeded. Additional imports from Azerbaijan, covering 15 to 18 per cent of annual consumption, have also proven more costly.

Complicating matters, the oil-indexed pricing formula and regulatory rules set by the Energy Agency of the Republic of Serbia (AERS) have led to a price surge for market participants. Between October 2024 and March 2025, gas prices for district heating systems rose by 26.5 per cent. This significant increase has placed a heavy burden on public utility companies, driving up operational costs and threatening the financial viability of an already vulnerable sector.

Stalled reforms

Serbia’s district heating sector is now entering a critical phase. By the end of 2023, 12 companies reported losses exceeding their equity, while 18 assumed liabilities surpassing their total capital – clear indicators of deep financial instability. With heavy reliance on imported fossil fuels leaving them exposed to global price fluctuations, district heating companies are unable to prioritise new technologies and decarbonisation projects without first undergoing economic consolidation and sectoral restructuring. Until then, long-term viability remains a pipe dream.

Despite this mounting urgency, the Serbian government has yet to come up with a credible, long-term restructuring plan, as acknowledged during the 23rd Summit of District Heating Associations in June 2025. This policy vacuum continues to stall essential reforms and leaves utilities focused on short-term survival rather than on long-term modernisation.

Coordinated efforts urgently needed

At the summit, Serbia’s deputy energy minister confirmed the government had no contingency strategy for the sector, aside from limited energy efficiency measures under a public project supported by the state and the European Bank for Reconstruction and Development (EBRD). The project applies an energy service company (ESCO) model to support multi-family residential buildings, but it offers little to address the wider crisis facing many of the country’s district heating utilities. Unless the government swiftly changes course, they could shut down within less than five years. A shift towards renewable energy sources is clearly essential – not only to reduce Serbia’s exposure to the volatile fossil-gas market but also to restore financial and operational stability. To achieve this, the government must overhaul its fuel mix by prioritising sustainable local power sources such as wind and solar to secure the nation’s energy future. In parallel, the introduction of carbon pricing and a structured phase-out of fossil-fuel imports are required to support this transition and make it more affordable over the long term.

Deploying technologies such as geothermal, solar thermal, and heat pumps would diversify the current system to a considerable extent, providing secure heating and a reliable pathway for phasing out fossil gas by 2050. But without a clear national roadmap, institutional backing, and targeted investments in renewables, Serbia has no chance of meeting its energy transition goals – leaving its citizens exposed to the rising costs of an outdated heating system.

International financial institutions like KfW and the EBRD can play a key role in supporting the Serbian government to develop and implement more bankable, technically sound projects based on these sustainable renewable technologies. Their involvement must provide the credibility, financing models, and technical expertise needed to finally move from strategy to execution.

Restoring the Dnipro: Ukraine’s water crisis and the path to Europe

Ukraine’s water woes

According to 2021 data from the World Meteorological Organization, the negative trend of diminishing water reserves is increasing worldwide due to both climate change and human activity. Over the past two decades, terrestrial water storage – encompassing all water on the land surface and beneath, including soil moisture, snow and ice – has dropped at an average rate of 1 centimetre per year. The situation is worsened by the fact that only 0.5 per cent of its water is usable for drinking.

Similarly, findings by Ukraine’s Accounting Chamber indicate a deterioration in the water condition of water bodies across the country. The risks of failing to meet the water resource needs of both the population and the national economy are mounting, as are the risks of inadequate preservation and replenishment of these vital resources.

This is evidenced by a 2021 Accounting Chamber report on an audit assessing the effectiveness of a proposed nationwide programme aimed at developing water management and improving the ecological condition of the Dnipro River basin.

According to this report, the World Bank then ranked Ukraine 125th out of 180 countries in terms of per capita access to drinking water, positioned between African countries such as Chad and Sudan, while the Centers for Disease Control and Prevention listed Ukraine among countries with the most dangerous and unpalatable tap water.

Similarly, Ukraine has made little headway in overcoming either the shortage or declining quality of its freshwater resources, with the WWF Water Risk Filter tool indicating that the state of freshwater ecosystem services in Ukraine had already crossed the ‘high-risk’ threshold on its way to being assigned a ‘very high risk’ status.

Regrettably, the water management programme in question, specifically designed to tackle these issues, was never implemented due to a lack of funding. Since then, Russia’s war has severely impacted the condition of the country’s water bodies.

Despite these challenges, Ukraine’s deputy health minister has re-emphasised the pressing issues related to the availability and quality of drinking water in the country, particularly in the context of Ukraine’s European integration efforts. In short, Ukraine has considerable work to do before it brings its national water standards in line with those of the EU.

What does the future hold for the Dnipro?

The National Ecological Centre of Ukraine (NECU) has raised concerns about the ongoing exploitation of the Dnipro, warning that continued misuse could lead to its complete ecological collapse. As a vital source of drinking water and a key resource for cities along its banks, the Dnipro must be protected. The NECU stresses the need to reduce the pressures placed on the river by hydropower production and navigation, and to halt the discharge of polluted wastewater into its waters.

One major issue highlighted is the massive environmental damage caused by artificial structures, especially hydroelectric power stations. Long before it was destroyed in June 2023 by Russia’s military, the Kakhovka hydropower plant had been highly problematic. Constructed in the 1950s, its reservoir flooded vast areas of natural landscape, submerging valuable ecosystems and altering the natural flow of the Dnipro.

Source: https://www.unian.ua/society/velikiy-lug-velichezniy-holodilnik-dlya-vsiyeji-planeti-vin-vplivatime-na-klimat-zemli-ekolog-vadim-manyuk-12657741.html

Numerous herbaceous plants and wildlife species have returned, signalling the river’s gradual revival. Left undisturbed, this area has the potential to become the largest floodplain wetland in Europe – possibly even Ukraine’s largest biosphere reserve. Environmentalists believe that restoring the reservoir could lead to a new ecological catastrophe.

To support recovery efforts, the Odesa branch of the NECU has developed an interactive map documenting the impact of the Kakhovka explosion. This tool is expected to play a key role in planning the restoration of the affected regions.

Plans without protections

Over the past decade, the Ukrainian government has repeatedly considered the development of a continental waterway connecting Gdansk and Kherson – known as the E40 waterway. In 2015, its estimated cost exceeded EUR 2 billion, and it would be significantly higher today.

Environmentalists have long opposed the project due to its far-reaching ecological consequences. If built, the waterway would affect 193 protected areas in the Polissia region – an area roughly the size of Belgium, representing 5 per cent of Ukraine’s total territory.

Given the potential harm, there is an urgent need to restore legal safeguards. Specifically, the requirement for conducting strategic environmental assessments for recovery and regional development plans, and environmental impact assessments for individual projects, must be reinstated. These safeguards were temporarily suspended during martial law.

The EU’s guidelines for expanding the Trans-European Transport Network (TEN-T) include an indicative extension into Ukraine. The EU’s TEN-T map of inland waterways and ports shows a planned waterway route along the Dnipro and Prypiat rivers via the Kyiv reservoir.

This inclusion prompted concerns within the European Parliament, particularly regarding the Chornobyl Biosphere Reserve, part of the Emerald Network of protected sites. The European Commission has since confirmed that, as of July 2022, the indicative TEN-T map for Ukraine includes both the Dnipro and Prypiat rivers, with the inland waterway set to culminate at Chornobyl Biosphere Reserve.

Map illustrating the proposed E40 waterway route extending upstream along the Pripyat River, with proposals to straighten and deepen the natural river channel in the direction of Chornobyl (blue line). Source: TENTec Map Viewers.

Despite this proposed mapping, the Commission stated that it had not been informed of any specific Ukrainian plans for inland waterway infrastructure. It also confirmed that full compliance with Ukrainian environmental laws is required, regardless of the temporary martial law amendments.

Back in 2015, an environmental impact assessment of the E40 project was carried out in a limited format. Even then, the authors concluded that it was impossible to determine which of the proposed routes would be least harmful to the environment at that stage of planning.

Meanwhile, several Ukrainian MPs have pushed for amendments to the current environmental legislation that would permit more uncontrolled economic activities on lands classified as part of Ukraine’s Water Land. This includes significant pressure from commercial interests seeking to exploit areas like the Chornobyl exclusion zone – now undergoing ecological restoration – for economic purposes, despite its value as a unique and recovering natural reserve warranting further preservation and study.

Are development banks investing wisely?

Following the destruction of the plant, several development banks announced their intention to support the reconstruction of Ukraine’s hydropower infrastructure upstream of the site. Under an agreement signed in June 2023, the European Bank for Reconstruction and Development (EBRD) secured EUR 200 million in loans and grants for Ukrhydroenergo, Ukraine’s largest hydropower company, as part of a broader EUR 600 million support package.

Additionally, a memorandum of understanding signed in March 2024 between Ukrhydroenergo and the European Investment Bank (EIB) outlined a potential additional loan of EUR 100 million. Negotiations with the World Bank are also ongoing.

However, many argue that these funds should not be used to rebuild outdated, vulnerable hydropower systems. Instead, development banks should support modern infrastructure designed to adapt agriculture, industry, and municipal water systems to the present reality – one in which the Kakhovka reservoir no longer exists.

A positive step forward

In a welcome move, in December 2024, the Ukrainian government adopted a new version of the national transport strategy until 2030, along with an operational plan for implementation until 2027. This new strategy no longer includes the E40 Gdansk–Kherson waterway project, effectively shelving it for the foreseeable future.

While this is a significant victory for environmental advocates, further action is needed. Specifically, the Pripyat River should be removed from the list of potential E40 waterway routes. This would go a long way towards establishing the prerequisites for its protection as part of the Chornobyl Biosphere Reserve under the Emerald Network. Encouragingly, on 13 May, the Ukrainian government designated the Prypiat river mouth a wetland of international importance.

Charting a new course

Despite these challenges, prospects for the Dnipro are promising. Ukraine’s drive towards EU membership provides a strong platform for aligning its policies with European environmental legislation. A strong example of this is the introduction of river basin management planning.

However, bridging the gap between policy declarations and actual implementation will require concerted efforts, sustained commitment and, most importantly, an understanding among decision makers of the urgency and national significance of restoring the Dnipro – Ukraine’s most vital river.

The threat to the EU’s LIFE programme in the next budget

This article was published as an opinion piece in EUobserver on 26 June 2025.

The EU’s new priorities are at a major crossroads. The once cutting-edge European Green Deal is now ditched in favour of defence, security and competitiveness. These discussions are taking place against the backdrop of the much-anticipated future EU budget, the financial resource responsible for driving forward the EU’s goals.

Competitiveness in particular has become the new buzzword. It now appears everywhere, there’s even a commissioner responsible for a competitive circular economy.

What we hear is that investing in clean technology, industry, and simplifying legislation, particularly for private companies, is key to achieving this.

But what we don’t hear is what forms the very foundations of our economy: nature.

It’s what provides us with clean drinking water, clean air, helps protect against disasters such as floods, droughts and landslides, stores carbon and pollinates the food we depend on — all services that not just our economies, but our lives depend on.

But nature is far from being in a healthy state. 81 per cent of habitats are in poor status in the EU and the situation appears to only be getting worse.

One of the key ways the EU can address this is by financing measures to protect what we still have and restore what has been lost.

There is already a dedicated programme — albeit modest — to finance such activities.

‘Best-performing’ EU fund

For more than three decades, the EU’s LIFE programme has done just that. Directly financing innovative, ambitious projects to halt biodiversity loss and restore vital habitats. In fact, it is widely deemed to be the best-performing EU fund.

The EU needs to continue this programme, which has proven its worth for several decades, and increase its funding, which currently makes up just 0.5 per cent of the EU budget.

But as more details emerge about the new EU budget, it seems increasingly likely that the LIFE programme will be swallowed by a new ‘mega-funds’ focusing on financing competitiveness.

No separate, standalone fund for the environment would exist.

Critics argue that spending scarce public resources to save butterflies or protect trees from being cut down is not viable.

But a quick look at some facts and figures is enough to see the importance of nature and what’s at stake.

According to the European Commission’s own Joint Research Centre, between 19 and 36 per cent of the EU’s gross value added is highly dependent on ecosystem services.

Pollination services alone are currently valued by the European Environment Agency at around EUR 10-15bn yearly in the EU. While investment into nature restoration generates EUR 8-38 in economic value for every euro spent, from the various ecosystem services provided.

The commission, in its current attempts to chase competitiveness is failing to see the wood for the trees.

Even a modest level of economic activity depends on a healthy environment, so if the ultimate goal is human wellbeing and prosperity, we need to invest in the resources that support us: nature.

Electrification of Riga’s heat supply brings balance to national grid

RĪGAS SILTUMS is the main supplier of heat energy in Riga, covering around 76 per cent of the city’s total heat energy demand. The company produces 32 per cent of this heat itself, with 54 per cent of its own production sourced from biofuels – primarily woodchips and pellets – and 46 per cent from fossil gas. The remaining heat is purchased from Latvenergo – one of the largest energy utilities in the Baltic region – as well as from other independent producers. However, fossil gas still dominates these external sources, accounting for 64 per cent of the purchased heat energy, with woodchips making up the rest.

In April of this year, an electrode boiler was delivered to the Imanta heating plant (located in the western part of the city) to support frequency balancing of the electricity system. The project is expected to generate considerable additional income, marking a major step towards electrifying Riga’s heat supply. It’s also the first boiler of its kind in Latvia, with others expected to follow suit.

Balancing Latvia’s power grid

In February, Latvia and the other Baltic states disconnected from the BRELL network – the joint electricity grid connecting Belarus, Russia, Estonia, Latvia, and Lithuania power grid previously controlled by Moscow – and synchronised with the European energy system via the LitPol Link transmission line.

This means that Latvia is now fully responsible for maintaining the stability of its electricity grid and ensuring that frequency remains within required limits at all times. This shift has significantly increased the importance of the Baltic electricity balancing reserve market, which had previously been more formal than functional. The market’s role is to maintain the stability of network frequency, preventing it from dropping too much due to insufficient electricity supply and from sharp rises when in excess.

Following the disconnection from BRELL, Latvia has joined the European balancing energy exchange platform, where companies contribute to grid stability by either consuming excess electricity or supplying additional capacity. These balancing services must respond within seconds or minutes and are compensated through a market-based system. Similar to regular electricity auctions, companies predict their availability and costs in advance.

Interest in this market has grown as a result of the expansion of renewable electricity capacity. Since generation from wind and solar sources varies and may not reflect actual demand, the need for a flexible balancing system has increased.

RĪGAS SILTUMS’ goal is to become an active participant in the electricity balancing market. The new electrode boiler will help reduce network frequency when it rises above the standard 50 hertz (Hz), stepping in when electricity is produced in excess. The boiler is capable of responding rapidly, reaching peak electricity consumption in just 90 seconds.

While its primary function will be to provide frequency balancing when needed, the boiler will also take advantage of moments when electricity prices on the exchange drop very low or close to zero, allowing the company to generate heat in a more cost-efficient way.

Innovations in heat storage and future planning

Another promising technological solution that RĪGAS SILTUMS is exploring is the use of a sand-based heat accumulator, which can store thermal energy for several months. A successful small-scale pilot project using this technology has already been implemented in Finland. However, if deployed in Riga, the system would be rolled out on a much larger scale.

The technology work as follows: an insulated tank is filled with sand and fitted with air ducts. Electrodes are inserted within these ducts and used to heat the air with an electric current. The heated air then transfers its energy to the sand, storing the heat for future use.

This system could help with frequency balancing in both directions – consuming excess electricity when supply is high and converting stored heat back into electricity to feed the grid when needed. The economic viability of the project largely depends on its role in the balancing market, as well as potential support from EU funds to assist with implementation.

Regarding the high-power compression-type heat pumps, which run on electricity, RĪGAS SILTUMS has so far adopted a cautious approach. The technology remains on hold until average electricity prices in Latvia decrease and the high capital costs associated with this type of heat production become more economically feasible. However, with new wind and solar parks expected to boost local renewable energy production over the next five years, this option could become more attractive.

Over the past decade, Latvian heating companies have significantly reduced their reliance on fossil gas by switching to forest biomass, particularly woodchips. However, there are concerns about overreliance on forest biomass in the long run. Over the next 10 years, there’s a risk that woodchips may no longer be officially recognised as a renewable resource under EU rules. This is because the Renewable Energy Directive requires that, for forest biomass to count as renewable in a given country, emissions from the land use, land-use change, and forestry sector must not exceed removals.

RĪGAS SILTUMS is financing the electrode boiler project from its own resources. Yet, for smaller heating companies in Latvia, investing in large-scale electrification or heat storage projects without passing on the cost to consumers through higher heating tariffs. As Maksis Apinis, head of the board at Latvian environmental organisation Green Liberty, points out: ‘It’s vitally important that sufficient EU funds are available for projects of this type, both in the current and next long-term EU budgets.’

Watch the video to find out more.

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