ABSTRACT
Estonian power engineering has a long history and distinguished traditions. Electric lighting was first used in factories in 1882. The recovery of political and economic independence in 1991 brought about drastic changes in Estonia's economy. For the energy sector, these changes meant a drama tic rise of fuel and raw material prices, a decrease in energy consumption and electricity exports, but also problems with imports of oil products from Russia. Estonia has ratified several international agreements, such as the European Energy Charter Treaty, the United Nations Framework Convention on Climate Change and its Kyoto Protocol, the Convention on Long-range Transboundary Air Pollution and its protocols, and the Vienna Convention for the Protection of the Ozone Layer. The energy sector is the basis for the rest of the economy and cannot be separated from environmental and social issues. Considering the sector's operation costs and investment needs, one can easily conclude that energy system operation and development have to be optimal.
