Tenders (public reverse auction)
Updated: 17.01.2019
Author: Lilian Pungas
The purpose of the technology neutral tender is to attain the national objective of generating electricity from renewable energy sources and through efficient CHP plants and to promote generating electricity with installations whose capacity is between 50 kW and 1MW (yearly goal to produce 5 GWh) as well as for installations with a capacity above 1 MW. Tenders will be announced and organised as reverse auctions by the Ministry of Economic Affairs and Communication (MKM).
According to MKM, the first tender for installations with a capacity between 50 kW – 1 MW will be held in 2019. For installations with a capacity above 1 MW, a tender will be launched probably in 2020. For those installations new tenders will be organized most probably every 2-3 years.
The regulation about the exact procedure of the tenders is still in the draft stage. Publicly accessible draft will be published presumably in the early 2019.
Eligible technologies
Installations with a capacity of 50 kW – 1 MW have a tender whereas the goal of the tender is to increase the annual production of electricity with respective installation’s capacity in the years 2019−2021 by 5 GWh annually (§ 59.6 par. 1).
Installations with a capacity exceeding 1 MW have a separate tender specific to the national RES-E goals. The 2020 goal is 17.6% RES-E in final consumption.
The purpose of the tenders is also to fulfill the agreement regarding the statistical energy transfers (§ 59.4-5; § 92.4 par. 1). In addition, by the 31st of December 2020, the goal is to have up to 10 percent of the final consumption of electricity produced by efficient CHP plants (§ 59.4).
All technologies are eligible but the tenders apply only to installations that will begin to generate electricity for the first time after winning the auction (§ 59.4 par. 7). Additionally, there are size restrictions for two different tenders: Electrical capacity of more than 50 kW but less than 1 MW for one tender (§ 59.6 par. 1), and more than 1 MW for the other tender.
| Wind energy | Differentiated tenders concerning the size restriction: - Electrical capacity of more than 50 kW and less than 1 MW (§ 59.6 par. 1).
- Electrical capacity exceeding 1 MW.
- Support duration is 12 years starting from commencement of production (§ 59.6 par. 8).
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| Solar energy | Differentiated tenders concerning the size restriction: - Electrical capacity of more than 50 kW and less than 1 MW (§ 59.6 par. 1).
- Electrical capacity exceeding 1 MW.
- Support duration is 12 years starting from commencement of production (§ 59.6 par. 8).
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| Geothermal energy | Differentiated tenders concerning the size restriction: - Electrical capacity of more than 50 kW and less than 1 MW (§ 59.6 par. 1).
- Electrical capacity exceeding 1 MW.
- Support duration is 12 years starting from commencement of production (§ 59.6 par. 8).
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| Biogas | Differentiated tenders concerning the size restriction: - Electrical capacity of more than 50 kW and less than 1 MW (§ 59.6 par. 1).
- Electrical capacity exceeding 1 MW.
- Support duration is 12 years starting from commencement of production (§ 59.6 par. 8).
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| Hydro-power | Differentiated tenders concerning the size restriction: - Electrical capacity of more than 50 kW and less than 1 MW (§ 59.6 par. 1).
- Electrical capacity exceeding 1 MW.
- Support duration is 12 years starting from commencement of production (§ 59.6 par. 8).
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| Biomass | Differentiated tenders concerning the size restriction: - Electrical capacity of more than 50 kW and less than 1 MW (§ 59.6 par. 1).
- Electrical capacity exceeding 1 MW.
- Support duration is 12 years starting from commencement of production (§ 59.6 par. 8).
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Procedure
Competent authority | The competent authority is the Ministry of Economic Affairs and Communications. |
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Cap
In case the producer fails to produce the needed quantities, the subsidy agreement will be abolished and a new tender will be launched. The regulation about the exact procedure of the tenders is still in the draft stage. Publicly accessible draft will be published presumably in the early 2019.
Eligibility period
The regulation about the exact procedure of the tenders is still in the draft stage. Publicly accessible draft will be published presumably in the early 2019.
Distribution of costs
| Consumers | According to MKM, the costs for funding the scheme are distributed to the consumers of electricity. |
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Estonia
