Estonia: Overall Summary

Updated: 17.01.2019

Author: Lilian Pungas

In Estonia, electricity from renewable sources has so far been promoted mainly through a premium tariff. However, major revisions in the legislation regarding RES support schemes have taken place in recent years. An auction-based system to promote RES development has been introduced in June 2018 which will replace the previous premium tariffs. From 2019 onwards, the Ministry of Economics and Communication (MKM) will announce public tenders (reverse auctions), in order to attain the national objectives (17,6%) in electricity consumption of renewable energy sources by 2020. Another change includes renewable energy trading with other EU member states that are not on track in achieving their RES 2020 targets. The relevant legislation was introduced in June 2018, the first contracts are in the process and there might be another tender in 2019 for statistical energy transfers.

To encourage the use of renewable energy sources (RES) for heating, investment supports are made available for the construction of CHP plants, as well as for private consumers. In transport, the use of renewable energies is currently mainly encouraged through a measure to support biomethane use and build biomethane fuelling stations.  

In 2017, the “National Development Plan of the Energy Sector until 2030” (NDPES 2030) was adopted and published, determining various national objectives regarding the legislation and policies to promote the renewable energy sources in electricity, heating and transport sector. However, the specific proceedings in regard to the implementation of further RES support schemes in all respective sectors are yet to be decided.

According to the MKM, new draft amendments regarding measures to support the RES in heating sector as well as the biomethane producers in the transport sector are expected in 2019. These goals follow the overall aim to increase the RES as foreseen in the “NDPES 2030”. 

Access of electricity from renewable energy sources to the electricity grid is granted based on the principle of non-discrimination. The grid operator is obliged to develop the grid to guarantee grid services for all electricity producers and to be able to connect further electricity plants to the grid. The connection of a heat generation plant to the grid is auction based and follows the principle of non-discrimination. 

Additionally, there are a number of investment support schemes available to promote the development, installation and use of RES installations. General measures of subsidies for the period 2014-2020 have been published, however, certain subsidy conditions are being currently developed. The total amount of financial support distributed to renewable energy and energy efficiency related projects during period 2014-2020 will be over € 490 million.

More about support schemes More about grid issues More about policies
Estonia

Further information

  • Majandus- ja Kommunikatsiooniministeerium (MKM) – Ministry of Economic Affairs and Communications
  • Siim Meeliste
  • +372 625 63 42
  • MKM website
  • info(at)mkm.ee
  • Keskkonnainvesteeringute Keskus (KIK) – Environmental Investment Centre
  • + 372 627 4125
  • KIK website