The Estonian state wants to bring 2 terawatt-hours (TWh) of production each for the construction of offshore and onshore wind farms onto the market in April.

The amendments to the Electricity Market Act set out the volumes the Estonian state wants to receive from wind farm developers in return for subsidies over the next decade.

According to Minister of Climate Yoko Alender (Reform), the coalition parties agree to the amendments in principle, though they have not yet been approved as things stand.

"We are still fine-tuning the numbers, the impact assessments, so that the explanatory memorandum is as simple and clear as possible, and we hope that next week we will be able to send it to the Riigikogu," Alender said.

Under the law, the maximum subsidy amount for onshore wind energy production is €20 million and for offshore wind €130 million per year. The offshore wind subsidy will be paid to developers at €65 per megawatt-hour.

"It is also a form of bilateral support, so that if the developers are in a loss-making situation, a maximum of up to €65 would be covered, but if on the contrary the developer has a very high profit, the state will actually get that part back. In a scheme like this, we will control the level of these subsidies. We have conducted thorough impact analyses and it is clear that with the scheme we are proposing, this is exactly how it will be: the final price of electricity will come down by more than the renewable energy fee, from which we will then collect the amount that goes to support developers," Alender said.

In January, Eesti 200 Chair Kristina Kallas said there was no need to rush into a decision to provide support for offshore wind farms. On Thursday, Kallas said the annual subsidies disbursed could be less than €130 million.

"Whether it will actually be paid in full depends on what the final price is. This is the maximum volume, but the reality is likely to be lower because more capacity will be added and the price will actually be more favorable for the consumer," Kallas said.

Despite the fact that an offshore wind park would be up to four times more expensive than an onshore one, it pays to support its construction.

"If we want to get the savings from wind, in other words, the same €5 billion for the national economy that we save on energy prices, which is estimated to be around two and a half cents cheaper under these models, then we need a certain amount of wind energy. After all, onshore today, we see for ourselves that there is no way that we can build these parks at this rate," said Prime Minister Kristen Michal (Reform).

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