In 2023, the renewable energy fee will be 1.24 cents per kilowatt-hour

The renewable energy fee that will be collected in 2023 from final consumers of electricity to finance renewable energy subsidies will be 1.24 cents per kilowatt-hour excluding VAT.

Next year’s renewable energy fee is most affected by electricity consumption being expected to fall by 5.2 per cent. Although the amount of subsidies to be paid will decrease, the amount that is collected from each consumed kilowatt-hour to finance the subsidies will increase as a result of the decrease in consumption that began in 2022.

According to Elering’s forecast, €87 million in subsidies will be paid for electricity made from renewable energy sources and €3 million will be paid for electricity produced by efficient cogeneration. According to the forecast, in 2023 the producers of renewable energy will produce 1613 gigawatt-hours of electricity and the producers of electricity by efficient cogeneration will produce 100 gigawatt-hours.

The biggest part of the subsidies, over €32 million, is presumed to go to the producers of solar panels. Power plants that use biomass will receive over €30 million and wind farms will receive nearly €24 million. Biogas stations and hydro stations are expected to receive less than €1 million altogether.

The amount of renewable energy production to receive subsidies will be affected by the end of the support period of a large combined heat and power plant and a medium-sized wind farm. The renewable energy fee is calculated while taking into account that, as a result of the decrease in electricity consumption, as of the end of October this year the received renewable energy fee was €3 million less than what was spent on the subsidies. This amount will have to be covered by the fees collected in the following year.

The renewable energy fee is the cost of financing the subsidies for electricity produced from renewable energy sources or by efficient cogeneration and given to the grid. The renewable energy fee is calculated by Elering, who will compile and publish an evaluation by 1 December on their website based on forecasts presented to them by network operators, direct line holders, consumers connected to Elering’s electricity network and producers of electricity from renewable energy and by efficient cogeneration.