Just a few years ago, the Estonian government was discussing ways to make grid connections for microproducers with an electricity capacity of up to 15 kilowatts (kW) more affordable, but now the situation has reversed.

According to the new connection fee methodology that Elektrilevi is implementing this May, microproducers, such as those setting up solar panels on their roofs, will have to cover all associated costs themselves.

"Yes, Elektrilevi has previously been able to find some additional resources on its part to slightly subsidize new connections," explained Elektrilevi board member Rudolf Penu.

"This year, we critically reviewed how much financial resources we actually have, and there is now a very significant gap," he acknowledged. "If we receive around €30-40 million annually through grid fees, we've looked at the actual total need, which the networks should invest annually, and that's in the range of €150-160 million."

Until now, connection fees were cost-based as well. But while Elektrilevi used to cover the extensive connection works involved with its grid fee, now these costs will be borne by the individual connecting to the grid as well.

"We see that there are already a lot of regional substations where our current capacities are at their limits, meaning that once these limits are reached, significant network reinforcement work will be needed when a new connection is added," Penu said. "This is where we're talking at times about millions of euros."

The Competition Authority, however, says the lack of funds is not true.

"This year, €161 million — a little over that," noted Margus Kasepalu, director of the Competition Authority's Energy and Infrastructure Department. "It cannot be said that there are [no funds]. And in the previous year, 2023, the amount was €158 million. It needs to be clarified that roughly half of this comes from grid fees, and the other half is funded by the connection fees paid by the users. So the company has had a significant amount of money to use."

Solar energy expert and Viru Elektrivõrgud CEO Andres Meesak said that the connection costs for microproducers have been increasing constantly. And while in the early years, the state subsidized the development of solar parks, developers have since become producers who must also maintain the grid.

"They needed this grid service, otherwise they wouldn't have been able to transfer the energy they produced to consumers," Meesak said. "They need the grid, but didn't have to pay too much for using this service. Now, the paradigm shift is just happening, and producers must contribute to the use of the grid service."

Last month, Elektrilevi submitted an application to the Competition Authority to increase its grid fees.

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