Estonia's grid operator Elering estimates that €320 million would need to be invested over the next five years to connect new renewable energy generation capacity to the grid. Under the current rules, grid reinforcement is paid for by those who join the grid.

However, according to the new plan, which has been approved by the government, in future, half of that money will be collected from network charges and the other half will be paid by subscribers. Fees will be fixed.

"If we look at it today, Elering's network fee from the final price of electricity is around six percent. By 2030, as a result of this particular change, it could be as much as seven percent of the final electricity price," said Elering board member Reigo Kebja.

Elering says that the new model, will enable it to make better plans in advance for developments to the grid, otherwise it will not be ready by 2030. Renewable energy development is fast.

"The idea behind the socialization of grid fees is similar to Finland – these fees are fixed and that gives both the grid owner and grid operator (the opportunity) to better plan all energy developments in advance," said Estonian Prime Minister Kristen Michal (Reform).

"This will help new providers to enter the market faster, it will also help the distribution network, because the distribution network – Elektrilevi and other distribution network service providers – are also major participants. It will help us plan our networks better as a whole," said Minister of Climate Yoko Alender (Reform). 

Renewable energy companies say the change is a positive one. Wind farms that are far away from the grid will be cheaper to prepare and better able to compete in national tenders.

"There is not a lot of good land for wind farms in Estonia, and so we should be using all of it to bring them online, not try to take wind farms off the grid. It is natural for nature and for people," said Terje Talv, CEO of the Estonian Wind Energy Association.

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