Factsheet: Electricity Market Act

Electricity Market Act

Key Information
Description: 
The Act regulates the promotion of renewable energy, its connection and access to the grid, the expansion of the grid and the distribution of the costs arising from this support system. It equally regulates the criteria for eligibility and the amount of support specific to each RES generation technology. Where an electricity producer sells electricity on the free market and exports it to the electricity grid, the transmission grid operator shall pay a bonus on top of the selling price (§ 59 par. 1, 2 ELTS). However, as the renewable energy sector development has been faster than initially foreseen and with the currently applicable support system Estonia is expected to exceed its foreseen targets for 2020 the Government is currently in the process of reforming the system. The bonus amounts to 5.37 €ct per kilowatt hour and does not differ for the individual technologies (§ 59 par. 2 no. 1 ELTS). However, CHP plants with a production capacity below 10 MW using waste, peat or oil-shale retorting gas are eligible for a tariff amounting to 3.2 €ct per kilowatt hour (§ 59 par.2 no. 2 ELTS). All renewable electricity generation technologies are eligible; however, for some technologies eligibility is subject to compliance with certain requirements (§ 59.1 par. 2 ELTS). Electricity produced for the power plants’ own use is not eligible for support (§ 59.1 par.2.5 ELTS). Wind energy Eligible with the following restrictions: The tariff scheme will be suspended for the current calendar year as soon as a total of 600 GWh of electricity from wind energy has already been supported. The amount of support available for calendar year is 76,694 000 Euros (§ 59.1 par. 5, 6 ELTS). Electricity generated by a wind power plant is not eligible if the plant operator has received other investment subsidies from the state for the same plant (§ 59.1 par. 2.3 ELTS). Solar energy Eligible. Geothermal energy Eligible. Biogas Eligible. Hydro-power Eligible. Biomass Eligible under the following condition: The electricity must be generated by high-efficiency CHP plants (§ 59 par. 1.2 § 108 par. 1.2 ELTS). Electricity generated by conventional thermal power stations is not eligible (§ 59 par. 1 ELTS).
Goal/Aim: 
Regulate the energy market; promote renewable electricity

Sector/Topic targeted:

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