Estonia will sell €2 million worth of renewable energy quotas to Malta, the Minister of Economic Affairs and Infrastructure and the Maltese Minister for Energy and Water Management agreed on Friday.
Estonian Minister of Economic Affairs and Infrastructure Taavi Aas and Maltese Minister for Energy and Water Management Michael Farrugia signed a contract in Valletta.
Aas said this transaction is notable because the number of renewable energy quota transactions in the European Union is remarkably low – in a total of three transactions, Estonia has been a participant in two.
"We have increased the proportion of our renewable energy from our target of 25 percent to 31 percent by this year, and this allows us to sell the statistical surplus to countries who have, for one reason or another, failed to reach their targets," the minister said.
The minister added that this transaction will hopefully lead to subsequent transactions. "The volume to be sold to Malta constitutes approximately five percent of our existing statistical renewable energy surplus and Estonia has a strong potential to conclude more transactions," Aas said.
Aas said in principle, there are two possibilities to use the revenue gained from the sale: financing new renewable energy projects or reducing the renewable energy charge for consumers.
The contract entered into between Estonia and Malta provides for the purchase of statistics in the volume of 100 gigawatt-hours (GWh) for a total amount of €2 million. The contract is flexible and Malta may either increase or reduce the amount to be purchased by one-fifth.
The proportion of renewable energy in Estonia is currently above the target level of 25 percent, which the country undertook to reach the European Union.
The majority of the surplus comprises wood for fuel used in district heating and households, cogeneration, and wind farms.
Since Estonia has a significant potential for producing renewable energy, the country is also currently in negotiations with other potential purchasing countries, the Ministry of Economic Affairs and Communications said.
The EU supports the purchase and sale of renewable energy quotas in order to allow member states to jointly and efficiently reach renewable energy targets, on the principle that energy must be produced at the locations with the best prerequisites and possibilities.
This means that within the EU, statistical transfers of renewable energy for the purposes of target achievement are possible, independent of the actual physical flow of electricity.
Estonia has previously sold quotas to Luxembourg.
Editor: Helen Wright