One Year of Impact: The Estonian Islands Energy Agency Leads the Way

In July 2025, the Estonian Islands Energy Agency (EISEA) marks its first year of operation. As a social enterprise, it has become a key player in addressing the energy challenges of Saaremaa, Hiiumaa, Vormsi, Kihnu, Muhu, and Ruhnu—six Estonian islands marked by sparse populations, ageing infrastructure, and energy vulnerabilities.

Over the past year, EISEA has offered guidance to more than 40 apartment associations, helping local residents navigate complex renovation grants and technical procedures. With a shortage of specialists, this support has proven vital—especially in Saaremaa and Hiiumaa where over 75% of apartment buildings require deep renovation.

But EISEA is not just advising—it is building bridges. The agency is collaborating with the Tartu Regional Energy Agency to become an official regional renovation advisory centre under EU mandates. This step would formalise their role in attracting investment and scaling renovation efforts across island communities.

Beyond buildings, EISEA is taking a strategic view. It’s assessing charging infrastructure for electric mobility, pushing for smarter, shared transport models, and proposing clean alternatives for ferry services in off-season months. In this spirit, it introduced Estonian authorities to Sweden’s electric, shallow-draft passenger ferries—offering a lower-cost, lower-carbon solution.

In Hiiumaa, EISEA is preparing the island’s first energy community centred on the Kärdla Sports Centre. With local solar generation and storage, the centre will become a model for decentralised, community-led energy. Ground-source heating—a technology long overlooked—also features prominently in EISEA’s roadmap. Strategic plans to modernise district heating systems in Orissaare and Käina are underway, with waste heat from local businesses set to be integrated.

Data gaps remain a challenge. EISEA is working to establish an energy monitoring platform, while pilot projects on Kihnu and Vormsi are already demonstrating practical impact—from school renovations to smart heating retrofits.

Throughout its inaugural year, EISEA has helped develop Saare County’s energy and climate plan, supported biomethane investment in Tahula, introduced renewable energy education in schools, and connected with European partners via FEDARENE, the Clean Energy for EU Islands initiative, and the Baltic Energy Islands Network.

With over €1.37 million in LIFE funding and additional national and local contributions, EISEA has already met its three-year investment mobilisation target of €20.6 million—in just one year.

According to Üllar Laid, Deputy Mayor of Hiiumaa, EISEA’s work is transforming how small communities approach energy: “We now have the tools, partnerships, and knowledge to lead our own transition.”

Saaremaa entrepreneur Olari Aavik adds: “EISEA is not just helping public actors—it’s supporting business too. That’s crucial when energy costs are a central challenge for our economy.”

EISEA’s work demonstrates what can be achieved when technical expertise, local partnerships and EU ambitions align. Their first year is only the beginning.