"I have been given a mandate by the government to hold Estonia's largest reverse auction for renewable energy to date that should add 650 gigawatt-hours (GWh) of green electricity to the market in the next few years," Sikkut said.

The minister said that the maximum bid is €45 per megawatt-hour (MWh). "That is on par with the average market price before the energy crisis. We are expecting bids below that marker," she offered.

"The maximum renewable energy subsidy rate is €20/MWh. Renewables are competitive even without subsidies at current prices and are a brilliant solution for the consumer and the state. But the total subsidy volume as well as conditions are tighter this time. Bidders will have to generate power also in the first and fourth quarters. We want to aim state support at year-round generation capacity that would contribute to supply security during peak winter consumption," Sikkut explained.

The economy minister added that in addition to renewable energy reverse auctions, Estonia wants an analysis of how many technology-specific auctions it would need to meet national goals, for example, talking about offshore wind farms. "We are also working on expediting permit processes, with the Consumer Protection and Technical Regulatory Authority (TTJA) set to hold sea area building permit auctions this year," Sikkut said in terms of near-future developments.

Estonia wants renewable energy to cover its electricity needs in full by 2030. The ministry's forecasts suggest this would require generating at least 9.4 terawatt-hours (TWh) of green electricity annually. Renewable sources yielded 2.88 TWh or 29 percent of total consumption in 2021.

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