
Alutaguse Municipality
Introduction
The municipality of Alutaguse is located in Ida-Viru County, in the northeastern part of Estonia, approximately 180 kilometers from the capital city of Tallinn. It covers a territory of 1,458.63 square kilometers, making it one of Estonia’s largest municipalities by area. According to Statistics Estonia, as of 2024, the population of Alutaguse municipality is 4,570 inhabitants.

Location of the Alutaguse municipality in Estonia
Population and demographic structure
Alutaguse municipality, located in northeastern Estonia, exemplifies the demographic challenges faced by many rural areas in the country. Over the past two decades, the municipality has experienced a significant population decline. Between 2000 and 2023, the population decreased by approximately 2,000 residents—a reduction of nearly 30%. This equates to an average annual loss of about 87 inhabitants, a rate higher than the national average for rural population decline in Estonia.
The municipality’s demographic structure has shifted toward an aging population, a phenomenon reflected in the progressive narrowing of the population pyramid’s base. The under-15 age group has seen a particularly notable decline, while the proportion of residents aged 65 and older has grown significantly.
By 2023, Alutaguse’s ODR reached approximately 70%, significantly higher than the national average of 57%.

Population dynamics in Alutaguse Municipality on years 2018-2024.

Visualization to show demographic breakdown in Alutaguse Municipality (2024)
Economy
As of 2024, Alutaguse has an unemployment rate of 3.46%, with 158 registered unemployed individuals. This reflects a relatively stable labor market, albeit shaped by structural changes due to the declining role of the oil shale industry.
Alutaguse operates within the economic framework of Ida-Viru County, which holds significant importance in Estonia’s economy:
- Total GDP (2023): €2.62 billion
- GDP per capita: €19,640
- County ranking: 3rd out of 15 Estonian counties by GDP

GDP per capita in Alutaguse municipality.
The municipality’s economy reflects a balanced distribution across three sectors: Primary sector (15–20% of employment), Secondary sector (25–30% of employment), Tertiary sector (50–60% of employment).
Energy resources
Alutaguse municipality exhibits substantial energy consumption, with total energy use per capita at 35.1 MWh, one of the highest among comparable municipalities. Annual electricity consumption is 144,274 MWh, while heat energy production amounts to 23,004 MWh, of which 7,799 MWh comes from renewable sources. Renewable electricity production to the grid is 516 MWh annually. The municipality’s vast territory (1,458.63 km²) and low population density heavily influence its energy consumption and production patterns. Enhancing renewable energy utilization remains a key focus for future energy development.
Alutaguse is rich in natural energy resources, particularly in its extensive forested areas, and has made notable strides in renewable energy development.