Ireland's Cabinet on Tuesday signed off on plans to pay Denmark €12.5 million and Estonia €37.5 million for a total of 3,500 gigawatt-hours of renewable electricity, The Irish Times reported.
Even though the transfer means the energy counts towards Ireland's renewable energy targets, it only takes place on paper.
The Irish government confirmed the transfer was needed as Ireland was set to fall short of its overall target to meet 16 percent of energy demand from renewable sources by between three and four percent.
In January of this year, Estonian Minister of Economic Affairs and Infrastructure Taavi Aas (Center) and Maltese Minister for Energy and Water Management Michael Farrugia signed a contract in Valletta, which allows Malta to purchase renewable energy statistics from Estonia for €2 million.
Aas said at the time that Estonia had increased the proportion of renewable energy from its target of 25 percent to 31 percent by 2020, and this allows it to sell the statistical surplus to countries who have, for one reason or another, failed to reach their targets.
Before that, Estonia had sold renewable energy statistics also to Luxembourg.
The European Union 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.
Editor: Helen Wright