Government Drops Plans to Subsidize Power Plant Construction
The government has taken back its application to the European Commission for permission to subsidize a new oil shale-fired power plant.
"We took back the power plant state assistance permit and will continue negotiations with the European Commission to receive the right to distribute carbon dioxide units free of charge in order to secure the construction and energy security of oil shale-powered units," Einari Kisel, undersecretary for energy at the Ministry of Economic Affairs and Communications, told Postimees.
Kisel said that, in a change from previous rules, a recent legislative amendment allows free carbon dioxide allowances to be distributed to power generating enterprises during the new greenhouse gas distribution period.
Last year, Eesti Energia signed a construction contract with Alstom for a new, 1-billion-euro plant. But a clause in the contract states that the go-ahead for the construction must come by the end of June. The company had been counting on state assistance.
Kristopher Rikken