The state announced the first reverse auction for renewable energy in Estonia

Ministry of Economic Affairs and Communications
Press release
19.11.2019

Taavi Aas, Minister of Economic Affairs and Infrastructure, has signed the first round for the first reverse auction of renewable energy in Estonia.

“Investment costs on the generating installations of renewable energy have significantly decreased in the last few years. It is therefore logical to replace the former guaranteed support scheme with reverse auctions, which will ensure a more favourable price for the consumers,” said Aas. The Minister explained that in the first round, the focus will be on testing the capacity of the market, and it will be followed in the future by procurements for renewable energy in bigger volumes.

With the first reverse auction, the state wishes to receive an additional 5 GWh of energy per year produced from renewable sources on the market by the year 2021 – for this purpose, small wind turbines, solar panels, as well as biogas plants are all suitable. The winner of the reverse auction will be paid support for 12 years with a maximum support level of 53.7 euros/MWh, while not exceeding a market price of 93 euros/MWh.

Only new generating installations whose electrical capacity is between 50 kW to 1 MW are able to participate in the reverse auction. The tender must be submitted to Elering. The deadline for the submission of tenders is 18 March 2020. The so-called old support scheme ended in 2018. From now on, only the renewable energy of producers winning reverse auctions will enter the market.

Further information:
Rasmus Ruuda
Ministry of Economic Affairs and Communications, Head of Public Relations Department
6256429
rasmus.ruuda@mkm.ee

NB! The materials of the auction are available on the website of Elering.