Policies in Estonia

In Estonia, the government supports the construction and operation of RES-E projects by two main measures: technology-neutral renewable energy tenders and premium tariff. The focus has been shifting from premium tariff to tenders from 2019 onwards.
According to the Estonian NECP, in the electricity sector, the share of renewable energy has to more than double from 19% in 2020 to 40% in 2030. Most of the growth is foreseen from wind energy (both onshore and offshore), even though both solar energy and especially biomass will continue to play a significant role as well.
The previous renewable electricity support scheme was established in 2010 and based on premium tariff. By now, the support system has been closed for new applications from the end of 2020, but payments are still being made for the recipients until the end of the support period (12 years) admitted prior to the closing of the scheme

• Technology-neutral tenders: supporting RES-E projects through reverse auctions. Since 2019, as of April 2021, three auctions have been announced. The volume of each auction can vary and there are no yearly limits set.

• MKM
• TSO Elering

In Estonia, the production of heat from renewable energies is subsidised through support schemes, mainly geared towards renovating buildings. Support schemes are provided for aerothermal, geothermal, hydrothermal, solar thermal and biomass and biogas technologies.
The Estonian target is to increase the share of RES-H from the 55% in 2020 to 63% out of total consumption by 2030 (NECP Estonia, 2019).
There have been multiple support schemes for RES H&C in the past, for example support scheme for private households replacing a liquid fuel based (typically light fuel oil) heating system with a heat pump, or support for transitioning to local heating. However, currently these support schemes are not active any more as to a large extent, such schemes received funding under the EU 2014-2020 structural funds.

• Apartment building reconstruction grant - available for apartment associations and local municipalities wanting to renovate apartment buildings.
• Reconstruction grant for small residences - available for private persons wanting to renovate their residence. The aim is to increase energy efficiency in the housing sector, bring down costs for the owners and reduce emissions

• MKM
• KredEx

In Estonia, one can differentiate between various types of support schemes for RES-T. First, there are schemes aimed at facilitating deployment of RES-T technologies, such as further use of biofuels (biomethane). Second, schemes supporting consumers and municipalities at switching from fossil fuels to RES in the transport sector.
The Estonian target for 2030 is to reach a 14% share of renewable in the final share of transport sector consumption (NECP Estonia, 2019).

• Subsidy for acquisition of electric buses and creation of charging infrastructure is aimed contribute to the development of electric public transport
• Biofuel quota stipulates that all fuel retailing companies and suppliers are obliged to fulfil a defined quota of biofuel out of their total sales (10% from 2020)
• Biomethane market development support aims to accelerate biomethane consumption in Estonia, with the goal of enabling the final consumer to consume biomethane at the price of natural gas

• MKM
• EIC
• TSO Elering
• Environmental Board