Renewable energy fee to go up 10 percent

Eesti Gaas solar farm in Pärnu.
Eesti Gaas solar farm in Pärnu. Source: Eesti Gaas

The fee consumers in Estonia pay for renewable energy will be raised by 10 percent, from 1.13 cents per kilowatt-hour to 1.24 cents in 2023.

The renewable energy fee collected from end consumers to fund Estonia's renewable energy benefits will be 1.24 cents plus VAT, transmission system operator Elering communicated.

The fee hike follows an estimated 5.2-percent drop in total power consumption next year. Even though the total support volume will fall, sums used to fund the support instrument will grow to offset falling consumption that started in 2022, the TSO said, adding that revenue from the fee was €3 million short of the benefit's need at the end of October, which needs to be compensated using next year's fees.

Elering forecasts the support instrument to cost €87 million next year, with €3 million needed for effective cogeneration support. The forecast suggests renewable producers will generate 1,613 gigawatt-hours (GWh) of power in 2023 and effective cogeneration producers 100 GWh.

The largest single chunk of the instrument at €32 million is forecast to go to solar producers, with power plants using biomass looking at €30 million and wind farms €24 million. Biogas and hydroelectric plants will be allocated less than €1 million combined.

The fee consumers have to pay is calculated by Elering and published by December 1 every year.

Estonia paid renewable energy and effective cogeneration producers a total of nearly €900 million between 2010 and 2021. Last year's support sum came to €95.5 million.


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Editor: Mait Ots, Marcus Turovski

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