The Estonian government has allocated EUR8 million to the state-owned transmission system operator (TSO) Elering to compensate an increase in the renewable energy charge payable by domestic and business consumers in 2021.

The renewable energy charge is a fee collected by Elering, through which electricity consumers finance subsidies for renewable energy production of approximately EUR100 million per year.

According to the Estonian Ministry of Economic Affairs and Infrastructure, the production of green energy has grown notably in Estonia over the past few years, as a result of which the renewable energy fee payable by domestic and business customers would have increased from next year as well. In the previous quarter, green energy production already covered over one quarter of total electricity consumption. Therefore, this move will help prevent an increase in the renewable energy fee next year and maintain it at this year’s level.

The ministry has also pointed out that the growth trend in the renewable energy charge is temporary and will turn to decline over the coming years. This is because the period of support for the production of older green energy producers is coming to an end, and new wind and solar energy parks do not need such a large subsidy anymore, which has also been illustrated by recent public procurements.