Estonia wants to declare wind farms reverse auctions in April
The government plans to announce auctions for both two terawatt-hours of offshore wind and an equivalent amount of onshore wind energy as early as this April, with the initial plan allowing bids to be submitted until August 12.
The head of the Climate Ministry's energy department, Rein Vaks, told ERR that under the current plan, auctions for renewable energy projects will be announced in April, with winners to be determined by November.
"From the decision to grant support, onshore wind farm developers will have six months and offshore wind farm developers 36 months to sign a grid connection agreement with [TSO] Elering," he explained.
New onshore wind farms are expected to begin electricity production by the end of 2029, while offshore wind farms are scheduled to start by the end of 2033.
On Monday, the Riigikogu Anti-Corruption Select Committee discussed the issue of subsidies for offshore wind farms. Energy expert Arvi Hamburg stated that no clarity was reached regarding the distribution of support. However, he noted that if the auction for wind farms is decided within the next month, there would be little point in continuing work on the National Energy and Climate Plan (ENMAK). He also criticized the government for not planning to conduct a socioeconomic analysis.
Vaks disagreed with this criticism. He stated that the ENMAK 2035 draft sets objectives and actions for electricity and gas supply, as well as heating and cooling, up to 2035, with a vision extending to 2050.
"Offshore wind farms are one way to ensure future electricity supply," Vaks said. "Socioeconomic analyses were conducted as part of the ENMAK 2035 baseline studies. Currently, the strategic environmental impact assessment is nearing completion, with public display and discussions held at the end of 2024. The impact assessment also includes an analysis of socioeconomic effects."
The head of the Climate Ministry's energy department added that the government approved the proposal to draft ENMAK 2035 in November 2021. The plan includes justifications for the development strategy, identified issues, a timeline and an impact assessment.
"The development plan is progressing according to schedule, with the goal of obtaining government approval by the end of 2025," Vaks said.
According to renewable energy decisions confirmed by the leaders of Estonia's three coalition parties, the Estonian state is prepared to provide up to €2.6 billion in subsidies to offshore wind farm developers. The support will be capped at a maximum of €65 per megawatt-hour.
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Editor: Marcus Turovski
