The power plant in Maardu simultaneously produces electricity and district heating for the city of Tallinn by burning mixed municipal waste.

"We have contacted the chancellor of justice to assess whether this amendment is in line with the Constitution. Additionally, we have been in contact with the Ministry of Climate," said Kadri Korsten, spokesperson for Eesti Energia.

"In our opinion, the amendment is disproportionate and calls into question the credibility of future promises made by the Estonian state to develop renewable energy. We believe that ensuring long-term legal certainty for promised support is essential for securing investments in Estonia," she added.

Iru power plant was renovated in 2013 when Eesti Energia built a waste incinerator at the site. A subsidy scheme introduced at the time was set to last for 12 years – until 2025.

However, the energy company estimates that the Riigikogu's decision will reduce Enefit Green's earnings before interest, taxes, depreciation, and amortization (EBITDA) by €2.8 million.

The company does not say what its plans are for Iru. "At the Iru cogeneration plant, we produce heat and electricity from mixed municipal waste that cannot be recycled. If our plans in this area change, we will inform our investors and the public accordingly," Korsten said.

Along with the loss of the cogeneration subsidy, Eesti Energia also increased the price of room heat produced at the Iru power plant. Last week, the Competition Authority confirmed that as of January 17, the price of heat will increase from the current €18.29 per megawatt-hour to €20.06 per megawatt-hour.

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