Opposition: Government should face no-confidence vote over energy agreement

Opposition party Isamaa wants to bring a motion of no-confidence against the government over its energy policy, said Chairman Urmas Reinsalu on Thursday. He called a new agreement burdensome for Estonian people and businesses.
On Monday, leaders of the three coalition parties – Reform, Eesti 200 and SDE – agreed the state would subsidize onshore and offshore wind farms and the development of energy storage capacities.
Speaking about the issue on the TV show "Esimene stuudio," Reinsalu said the coalition is rushing to push its policy through the Riigikogu. This will result in Estonia becoming a country with subsidized energy.
"This will lead, at least in the long term, to more expensive electricity [...] and will pose risks to supply security," he said.
"If we select a single mode of electricity production, such as offshore wind farms, whose base production cost is higher than today's already high electricity prices, then it is clear that with this subsidized system, we will make electricity more expensive. Let me give an example – this vision stipulates that by 2030, renewable electricity production must match Estonia's total consumption, which requires investments exceeding €10 billion. That is the entire volume of our electricity market," the chairman stated.
The Energy Sector Organization Act's goal – which states Estonia's renewable electricity production must equal consumption by 2030 – needs to be revised, Reinsalu said. This agreement was green-lit when Isamaa was part of the governing coalition in 2022.

"I believe we need to amend this goal at the legislative level in the Energy Sector Organization Act. Experts have said that this target is both unrealistic and unnecessary. One important thing – if we look at European countries with a higher share of renewable energy, such as Denmark, Germany, and Ireland, we see a direct correlation with higher electricity prices. That is the reality of today's European electricity market," the chairman said.
Reinsalu said the government's energy policy objectives should prioritize affordability and supply security. Instead, the goal has become ideological.
The MP said that he had sent a letter to Prime Minister Kristen Michal (Reform) on Thursday urging him to abandon the policy. As he had not changed his position by the end of the day, Isamaa intends to initiate a motion of no confidence in the government.
"I thought it would be dignified to give the prime minister the day to reconsider his position. Unfortunately, I see that this has not happened, which means we are moving to the next stage of preparing this [no-confidence motion]. We need a public forum to discuss these decisions. Right now, these decisions have been made behind closed doors," Reinsalu said.
"And this is not in the hope that it will fail in parliament. All political forces must, before the government makes final decisions, give their political assessment – whether they support this agenda, whether they take responsibility for its financial implications, as well as its impact on the economic environment and Estonia's competitiveness," he added.
Asked whether he suspects any private interests lay behind the agreements made by coalition party leaders, Reinsalu said these decisions have significant business implications.
"And the way these decisions have been made, in my view, raises questions. In addition to the ideological course that the government has chosen in energy policy, I believe we have the right to demand rational transparency, argumentation, and dialogue when decisions are made in a completely non-transparent manner," the chairman told the show.
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Editor: Marko Tooming, Helen Wright
Source: Esimene stuudio, interview by Mirko Ojakivi