Estonia plans up to €5 million payments to municipalities that allow wind farms
Minister of Energy Erkki Keldo has sent for approval a draft regulation that would create the possibility to pay local governments up to €5 million in support to encourage the construction of wind farms on their territory.
The purpose of the measure, called Tuulehoo preemia (Wind Speed Bonus), is to increase the readiness of local governments to carry out wind‑energy developments, especially in the most time‑consuming stages of planning and permit procedures, the Ministry of Climate said.
The maximum amount of support is up to five million euros per municipality, divided into two parts: the first part can be applied for after the planning has been established, and the second part once construction permits for the turbines have been issued. The right to apply for support arises when the established plans foresee at least five wind turbines.
According to the ministry's press release, the support can be used to improve local life — for example, renovating schools and other public buildings, building pedestrian and cycling paths, creating local energy and storage solutions, and improving crisis preparedness.
The total volume of the bonus support is at least 12 million euros, planned for 2027 and 2028. The measure will be financed from the sale of emission allowances (CO₂ quotas) up to 12 million euros and from the state budget.
The bonus does not mean that a municipality must establish a wind‑farm plan or issue a construction permit. All existing requirements remain in force: necessary studies and environmental impact assessments must be carried out, and local residents must be involved, the ministry explained.
At the same time, it was added that the bonus payment does not replace the wind‑turbine fee. While the turbine fee provides local governments and residents with long‑term annual income throughout the wind farm's operating life, Tuulehoo preemia enables local benefits to arise earlier — at the planning and construction‑permit stage.
The Ministry of Climate expressed hope that the planned bonus will also contribute to the state's long‑term goal of increasing energy security and the share of clean energy, and ensuring affordable electricity prices.
"Onshore wind will be one of the most cost‑effective ways to produce electricity in the coming years, and it increases access to low electricity prices. To reduce dependence on fossil‑fuel imports, we need affordable, renewable, domestic production. Therefore, developing wind farms is of strategic importance, and we cannot allow the construction of new parks across Estonia to stall. This is why we are creating the bonus. The local community must feel that changes in their living environment bring them practical benefits. Developing wind farms should be cooperation that benefits everyone," Keldo said in the press release.
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Editor: Mait Ots, Argo Ideon
