EC okays EUR 650m of further state aid under Estonian renewables scheme

The European Commission (EC) today announced its approval, under EU State aid rules, of additional support under an Estonian scheme for renewable electricity production and efficient co-generation.

The approved amendment to the scheme increases its budget by EUR 650 million (USD 713m), resulting in an overall budget to EUR 1.37 billion.

Initially cleared by the Commission in 2014 and subsequently amended in 2017, the programme provides support through fixed feed-in premiums on top of the market price for renewable energy installations and efficient cogeneration systems. The premium above the market price is EUR 53.7 per MWh for electricity produced from renewable energy sources, including combined heat and power systems using renewables, and EUR 32 per MWh for electricity produced in efficient combined heat and power systems fuelled by natural gas, retort gas, peat and municipal waste.

The amended scheme was assessed under the 2014 Guidelines on State aid for environmental protection and energy, with the EC concluding that it remains necessary to help reach Estonia’s renewable energy targets and the EU climate neutrality goal by 2050, without unduly distorting competition.

(EUR 1 = USD 1.097)

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