Ministry starts legislative preparation for large-scale offshore wind power
The Ministry of Climate has initiated legislative amendments which would support the development of offshore wind energy and, it is argued, help to reduce energy bills.
Climate Minister Yoko Alender (Reform) said: "Clean and affordable energy is the foundation of the well-being and economic growth of the Estonian people.
"As a result, we want to support wind energy generation, not only on land, but also at sea. Estonia has great potential for this," Alender continued.
"We are creating a 20-year support plan for the development of offshore wind farms. This will provide certainty that electricity prices can remain affordable, and that there will be sufficient renewable energy - needed for both existing and new clean industries, which will bring significant investment into the country."
The Ministry has said it plans to hold an auction in the first half of 2025, with the goal of bringing new offshore wind energy to the market by the end of 2033 at the latest, which could bring up to 2 Twh of offshore wind production, to meet domestic consumption,
The total output could potentially reaching 4 TWh per year, or more.
The Ministry of Climate also plans to support onshore wind energy development, aiming to bring approximately 4 TWh of onshore wind electricity to the market, also via public tender.
The completion of new onshore wind farms is planned for the end of 2029, with a total support period lasting 12 years.
The ministry estimates that with the implementation of the planned auctions, electricity prices will fall by 2.4 cents per kWh by 2030: From 9 cents, to 6.6 cents per kWh—and by around 4.5 cents per kWh by 2035.
This could save consumers in Estonia and the surrounding region about €250 million annually, and up to €5 billion over 20 years, the ministry reported.
"The addition of renewable electricity to the market will first and foremost lower electricity prices in Estonia," Minister Alender said.
The Ministry sent a draft amendment to the Electricity Market Act and the Energy Sector Act for coordination Friday, which will set up the conditions for offshore wind energy development and establish rules for the offshore wind energy support scheme.
The climate ministry plans to present the draft to the government in November, and the legislative amendments are expected to take effect in the first half of next year.
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Editor: Andrew Whyte
Source: Ministry of Climate
