The fixed-price subsidy periods for renewable electricity plants under the old scheme are gradually ending, which means less money will be needed for subsidies in the coming years. This is expected to lead to a slight decrease in the renewable energy fee in the near future, explained the grid operator Elering.

This year, electricity generated from renewable sources accounts for 63 percent of Estonia's total electricity production. Subsidized renewable electricity makes up 46 percent of all renewable electricity produced, meaning that over half of Estonia's renewable electricity is generated without subsidies, Elering noted.

Next year, an estimated €84 million will be allocated for renewable energy and efficient co-generation subsidies. Subsidized electricity production is expected to reach approximately 1.6 terawatt-hours.

For both wind and solar parks, subsidies will total €28 million each. Biomass-fueled plants are slated to receive €23 million, while power plants that participated in recent renewable energy auctions will receive €3 million. Subsidies for efficient co-generation are projected to remain below €2 million.

The renewable energy fee is a legally mandated charge used to fund subsidies for electricity produced from renewable energy sources or through efficient co-generation that is fed into the grid.

By law, TSO Elering calculates the renewable energy fee. By December 1, it publishes an estimate on its website based on production and consumption forecasts. These forecasts are provided by network operators, direct line operators, renewable energy and efficient co-generation producers and consumers connected to Elering's grid.

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