Estonia turns global crisis into momentum to intensify energy transition

Jakarta (ANTARA) - Estonian Infrastructure Minister Kuldar Leis stated that the energy crisis resulting from the conflict in the Middle East serves as a momentum for his country to intensify efforts in transitioning to environmentally friendly renewable energy.

“The solution for Estonia is that we are targeting the wider use of alternative fuels,” said Kuldar Leis when responding to reporters’ questions following the Estonia-Indonesia Maritime Industry Business Mission forum in Jakarta on Tuesday.

He explained that Estonia’s energy supply is not directly impacted by the shipping disruptions in the Strait of Hormuz, as most of its oil supply for the Nordic country comes from Norway.

However, Estonia is affected indirectly, as the rise in commodity prices occurring in the country is causing disruptions to ongoing projects, such as the toll road construction project and the cross-country Rail Baltica railway infrastructure project.

“Fuel prices at our petrol stations have risen 25 percent compared to two or three months ago, and this is a major problem for both the government and the public,” said Minister Leis, adding.

To ensure Estonia remains resilient against the impacts of the global energy crisis, Leis conveyed that his government will optimise solar and wind power plants, as well as promote the use of alternative fuels such as biogas and methanol.

He also highlighted the increasing popularity of electric vehicles in Estonia, with their numbers now reaching 20 percent of all new cars there, despite promotional efforts having been underway for 10 years.

The Strait of Hormuz has been effectively closed since the war between the United States and Israel against Iran began at the end of February.

This escalation has halted shipping in the Strait of Hormuz, a key route for oil and natural gas supplies from Persian Gulf countries to global markets.

As a result, oil prices have surged in many countries.

Several countries have taken steps to address the energy crisis impacts, such as the Dutch government announcing a nearly 1 billion euro (approximately Rp20.2 trillion) aid package to cushion the effects of rising energy costs for households.

In Asia, the South Korean government has called for reduced energy use, and Malaysia has encouraged its citizens to work from home.