Renewable energy charge returns to 2017 level

In 2019, the renewable energy charge used to finance the renewable energy support set forth in the Electricity Market Act will return to the 2017 level – 1.04 cents per kilowatt-hour not including value-added tax.

The amount of the renewable energy charge in 2019 is impacted on one hand by the addition of supplementary biomass generating capacities. At the same time, the 4.5 million euros in revenue received from a renewable energy statistical transfer transaction between Estonia and Luxembourg will slow the growth of the charge. As a result of the transaction, Luxembourg will cover part of the need for subsidies related to the new renewable energy generating capacities.

A total of 85.1 million euros is forecasted to be spent on renewable energy support in 2019, and 3.7 million euros for support for electricity generated in efficient co-generation mode. A projected 1585 gigawatt-hours will be produced from renewable energy and 115 gigawatt-hours of energy in efficient co-generation mode.

The greatest share of the renewable energy support – 58.9 per cent – is forecasted to go to biomass-fired co-generation plants. Renewable energy produced from wind will receive 35.6 per cent of the support. The rest of the support will be distributed among biogas plants and hydro and solar producers. The amount of support paid to solar plants will triple compared to the year ending, reaching 1.9 million euros.

When it comes to administering renewable energy subsidies, Elering acts as a payment agency, renewable energy charges from consumers through network operators and paying it out as subsidies to power plants producing electricity from renewable sources. The amount of the renewable energy charge has been the following over the years: