The generation of renewable energy increased by 15 percent in the previous year

In 2021, Estonian power plants produced 2,578 gigawatt-hours of renewable energy – 15.6 percent more than in 2020. Renewable energy made up 40.7 percent of Estonian electricity production in the previous year and covered 27 percent of total consumption.

The amount of renewable energy receiving subsidies decreased by 5.5 percent in the last year, reaching a total of 1,710 gigawatt-hours. In total, renewable energy and efficient cogeneration subsidies were paid in 2021 in the volume of 94.5 million euros and renewable energy charges from which subsidies are funded amounted to 94.9 million euros.

Biomass, biogas and waste contributed to 59 percent of the production of renewable energy last year. 1,514 gigawatt-hours of electricity were produced from these sources and subsidised in a total amount of 44.7 million euros.

Wind power contributed to 28 percent of the total production of renewable energy in 2021. A total of 734 gigawatt-hours of electricity was generated. Due to less favourable wind conditions, the production of wind in 2021 decreased compared to the previous year, and as a whole decreased by 11 percent over the year. The maximum limit established for subsidised wind power – 600 gigawatt-hours per calendar year – was not met. The subsidised generation was 541.6 gigawatt-hours of electricity, for which 28.7 million euros of subsidies were paid.

The production of hydropower amounted to 24.8 gigawatt-hours in the last year, while the production in 2020 amounted to 27 gigawatt-hours. A total of 576.5 thousand euros of renewable energy subsidy was paid for generation in the last year.

Solar power saw the biggest growth for yet another year as the amount of the produced electricity grew more than twice – from 122.5 gigawatt-hours to 305 gigawatt-hours. The subsidy amounts increased in the same volume as 17.4 million euros were paid in subsidy for electricity produced via solar power in 2021.

As of the end of the year, there are more than 9,400 producers of solar power and production capacity in the volume of 352 megawatts has been registered in the subsidy plan. Compared to the end of the previous year, the number of producers has essentially tripled, and additionally, the network connection construction is pending for nearly 2,600 production capacities of up to 50 kilowatts, reaching a total amount of approximately 450 megawatts of production capacities based on solar power.

Efficient cogeneration subsidies were paid in the same volume in 2021 as in 2020 – approximately 3.1 million euros per 110.6 gigawatt-hours.

At the end of the last year, the state announced an underbidding contest for annual generation of renewable energy of 450 gigawatt-hours. The subsidy rates payable as the result of the underbidding contest will be more than two times lower than the rates currently paid arising from the new underbidding contest rules.