ESTONIA RENEWABLE INCENTIVES

In Estonia, electricity from renewable sources is mainly promoted through a premium tariff. In addition, investment supports are available for specific types of renewable energy production technologies. To encourage the use of renewable energy sources 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 support scheme to promote the purchasing of electric cars that use power produced from renewable energy sources.

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. Currently subsidy period 2007-2013 is still in force. 2014-2020 subsidy period’s general measures have been published, however certain subsidy conditions are being currently developed. They are expected to be published during 2015. Total amount of support distributed to renewable energy and energy efficiency related projects during period 2014-2020 will be over 490 million euros. ESTONIA RENEWABLE INCENTIVES

ELECTRICITY

HEATING AND COOLING

Support schemes

In Estonia RES-H&C is supported through various investment subsidies. The distribution of the support is round-based and is allocated based on applications and available funds.

More about support schemes

Grid issues

In Estonia, local authorities determine the conditions and procedure for the connection of heating plants to the grid. Furthermore, local authorities also determine the grid development obligation. When new heating production capacities are necessary, the grid operator is obligated to launch a public call for heat producers in order to determine the best offer. Priority is not given to the heat produced from RES sources. However, when possible, preference should be given to heat produced from RES and CHP plants. The grid operator concludes contracts with heat producers for a period of maximum 12 years.

More about grid issues

Policies

In Estonia, the development of specific regulatory measures concerning renewable energies is ongoing. Certification system for people working with RES installations has been put to place. However, where no nationwide regulation exists, incentives are created on the local level through available investment supports and loans.  ESTONIA RENEWABLE INCENTIVES

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TRANSPORT – MOBILITY

Support schemes

In Estonia there is currently no generally applicable support scheme to promote the use of renewable energy sources in the transport sector. However, in October 2013 the Ministry of Economic Affairs and Communications proposed amendments to the Liquid Fuel Act, which foresees the introduction of a quota system. According to the proposed amendments the share of biofuels must be at least 5% by 2016 and gradually rise to at least 10% by 2020. The amendments are currently being reviewed by other ministries. In addition a support scheme is put in place to promote the purchasing of electric cars that use power produced from renewable energy sources. According to the Ministry of Economic Affairs and Communications while the main investments are currently aimed at renewing the public transportation network, work is also done to develop a support scheme for the production of biogas.

More about support schemes

Source and more information on:  RES LEGAL

Further information

  • Majandus- ja Kommunikatsiooniministeerium (MKM) – Ministry of Economic Affairs and Communications
  • Viive Savel
  • +372 625 64 48
  • MKM website
  • viive.savel(at)mkm.ee
  • Keskkonnainvesteeringute Keskus (KIK) – Environmental Investment Centre
  • + 372 627 4125
  • KIK website ESTONIA RENEWABLE INCENTIVES