The paper provides a comparative analysis of economic growth in Estonia, Latvia and Lithuania and discusses differences in development of the main sectors during the period 2000–2016. Based on detailed analysis of energy sector development, the driving factors influencing changes in primary energy consumption in each country and in the Baltic region are discovered. Increase of renewable energy sources (RES) consumption in the Baltic region over this period by 73.6% is emphasized. The paper presents valuable insights from analysis of trends in final energy consumption by sectors of the national economies, branches of the manufacturing sector, and by energy carriers. Long-term relationships between economic growth and final energy consumption are established. An econometric model was applied to predict final energy demand in the Baltic States for the 2020 horizon. It is emphasized that growing activities in the manufacturing and transport sectors will cause increase of final energy demand in all three countries. Based on detailed analysis of greenhouse gas (GHG) emissions trends some positive shifts are shown and the necessity of new policies in the transport sector and agriculture is identified. Changes of emission intensity indicators are examined and a potential for decoupling of carbon dioxide (CO₂) emissions from economic growth in Estonia is indicated.

In the European Green Deal, EU Commission has set a goal to reduce greenhouse gas emissions in the transport sector by 90% by 2050 compared to the 1990 level. Most likely, transport decarbonization will rely on a rapid expansion of electric and hydrogen vehicle fleet, which would seriously affect not just overall electricity demand, but also the shape of the electricity consumption curve. Consequently, our research focuses on integrated energy and transport modelling when analyzing its development pathways up to 2050 and beyond. This paper describes how already established transport modeling practices can be further improved by differentiating vehicles by age groups and setting vehicle age distributions to improve the representation of vehicle stock, fuel efficiencies and emissions, especially for countries that have non-declining vehicle age distributions. Modeling results using proposed and traditional approaches were compared for the Lithuanian case. It shows that the transport fuel shift using the proposed approach is more gradual than the traditional one. Diesel cars are phased out by 2050 versus 2040. Furthermore, the proposed approach provided more realistic CO₂ emissions, 7% lower emissions for 2018 than estimated based on statistical data, while traditional approach was 27% lower.

In the next ten years, the Baltic countries ― Estonia, Latvia, and Lithuania ― are planning large investments in renewable power generation and transfer capacity, substantial phase-out of fossil-based power generation, and desynchronization from the Russian electricity grid. In this article, the operational impacts of these changes on the Baltic energy system from 2017 to 2030 are studied with an open-source Backbone energy system model. The operation of Estonian, Latvian and Lithuanian power and heat, transport, and building sectors are optimized simultaneously on an hourly level, and results are analysed with operational, environmental, economic, and security indicators. Results suggest that the planned transition would support Baltic targets in renewable generation (from 45% to 92%) and self-reliance (2.3 TWh increase in domestic power generation and 5.5 TWh decrease in natural gas imports) with a moderate impact on system costs. However, an increase in transport CO2 emissions could risk national non-ETS targets. The hourly operation of the system, with a high share of wind and solar, is based on active use of storages and interconnectors. Model results raise concerns about the amount of Estonian dispatchable capacity, the commercial feasibility of Latvian natural gas CHP’s, and the high ramping rates of Lithuanian interconnectors.

The improvement in energy efficiency (EE) and increasing consumption of renewable energy sources (RES) in manufacturing play an important role in pursuing sustainable development in the Baltic States and contribute to the transition to a low-carbon economy. This paper presents the results of a detailed analysis of the channel through which EE, along with structural activity changes, passes energy intensity and total energy savings and in combination with other key drivers results in reductions in greenhouse gas (GHG) emissions in manufacturing in Estonia, Latvia, and Lithuania during the period 2010–2020, taking into account the role of transformations in the energy and climate framework of the European Union (EU). The Fisher Ideal Index, the Kaya identity, the Logarithmic Mean Divisia Index (LMDI), and comparative analysis methods are used. The results of the impact analysis of key drivers on energy intensity showed different contributions towards improvements in EE and structural activity changes to changes in energy intensity in manufacturing, which decreased by 53.1% in Estonia, by 30.5% in Lithuania, and by 16.5% in Latvia. The dominant role of EE improvements on total energy savings is identified. The results of the GHG decomposition analysis showed that because of improvements in energy intensity, reductions in the share of fossil fuels, and increases in labour productivity, number of employees, and emissions intensity, the GHG emissions decreased by 35.5% in Estonia, 40.4% in Latvia, and 8.1% in Lithuania. The results confirm the need for new policies and the implementation of relevant commitments to save energy and increase the contribution of RES in all three countries.

The deployment of renewable energy sources (RES) is an essential strategic objective of sustainable energy development in Estonia, Latvia and Lithuania. Their growing contribution to the total primary energy supply can significantly facilitate the transition to a low-carbon economy. The paper provides findings from an in-depth comparative analysis of RES deployment trends during 2010–2019 in the Baltic countries in the context of energy policy documents of the European Union (EU). The dynamics of targeted RES indicators according to the Renewables Directive 2009/28/EC and National Programmes and the role of renewable energies in mitigating climate change are analysed. A key role of the heating and cooling sector in deploying RES is highlighted and a necessity to implement radical changes in the transport sector of the Baltic countries is revealed. The paper examines changes in energy-related greenhouse gas (GHG) emissions and the impact of driving factors in Estonia, Latvia, Lithuania and other countries of the Baltic Sea Region (BSR). The Kaya identity and the logarithmic mean Divisia index (LMDI) method are used for the decomposition analysis. Based on the analysis conducted, the impact of population change, economic growth, decline of energy intensity, RES deployment and reduction of emission intensity on change of GHG emissions in countries of the BSR and, on average, in the EU-27 during 2010–2019 is revealed.