Where an electricity producer sells electricity on the free market and exports it to the electricity grid, the transmission system operator shall pay a bonus on top of the selling price (§ 59 par. 1, 2 ELTS). However, as the renewable energy sector development has been faster than initially foreseen and with the currently applicable support system Estonia is expected to exceed its foreseen targets for 2020, the Government is currently in the process of reforming the system. The draft of the new legislation is currently being discussed in Parliament.
The government has regulated the payments of renewable energy charges and subsidies in order to promote and contribute towards broader uptake for production and consumption of renewable energy. Renewable energy charge is the fee appointed by the government with the aim to support energy production from renewable sources or efficient cogeneration in Estonia. The fee is regulated by the Electricity Market Act. According to the Electricity Market Act, the main grid operator Elering determines the amount of renewable energy fee and publishes it every year on the 1st of December for the new calendar year. See more about the renewable energy charges.
Renewable energy subsidy
According to the Electricity Market Act §59 the subsidies are issued for:
- introducing renewable energy sources;
- increasing efficiency in energy sector;
- securing inland security of supply/capacity sufficiency.
Renewable energy subsidies are paid by main grid operator Elering
See also: Instructions for Market Participants; Obligations for receiving the subsidy
In addition, the renewable energy investment subsidies are paid according to the schedule and resources by:
- Estonian Agriculture Registers and Information Board (ARIB)
- Environmental Investment Centre
Last update: 07 2023