In Estonia, municipalities are responsible for the operation and development of local energy utilities providing heat supply. Although the district heating utilities have been privatised in many cases, a number of utilities are still under the control of municipalities, as their economic performance is not good due to poor consumer purchase power and low efficiency of the district heating systems. Every year the Ministry of Economic Affairs and Communications carries out an open call and evaluation of proposals, where municipalities are eligible to present the proposals on increasing the efficiency in their facilities or district heating. These projects might foresee installation of new boilers on renewable fuel. Usually supported installations are small: their average size is less than 1 MW. Every year 2 or 3 projects are supported, while the number of applications has been high always. In 2004, a EU financed project (from PHARE funds) with a focus on energy efficiency improvements was adopted, with a budget 2 MEUR for investment support.