Renewable Energy Made Up 20.4 % of Estonian Electricity Consumption in the Second Quarter

Electricity produced from renewable energy sources accounted for 20.4% of Estonia’s total electricity consumption (including the forecasted consumption of power plants themselves) in the second quarter; the corresponding proportion was 13.6% last year. Compared to a year ago, 51% more electricity (403 GWh) was produced from renewable energy sources.

The majority, or 76%, of the renewable energy came via electricity produced from waste, biomass and biogas. Wind power made up 21% and hydro power 3% of the electricity produced from renewable sources. Compared to the previous year, the amount of electricity produced from biomass increased in particular, by almost 60%, while the amount of wind power has increased by 35%.

Renewable energy subsidies paid in the second quarter of this year amounted to almost 20 million euros, which is nearly half as much again as in the same period in 2011when 13.3 million euros were paid out as subsidies.

The subsidy payouts increased the most for electricity produced from biomass and biogas, by six million euros, to a total of 16.5 million euros. The main source of this increase is the large-scale use of biomass by Narva Elektrijaamad (Narva Power Plants), and its subsidies increased by a factor of 2.2 to 10 million euros in the second quarter compared to the same period last year.

A total of 371 GWh worth of electricity from renewable energy sources received subsidies, while the same indicator was 249 GWh in the second quarter of 2011.

According to Taavi Veskimägi, Chairman of the Board at Elering, the data for the first half-year shows that the actual amount of renewable energy in 2012 significantly exceeds the volumes forecast earlier by the producers themselves and used as the basis for the renewable energy tariff. In half a year, subsidy payouts to producers by Elering exceeded the amount collected from consumers by network operators via the renewable energy tariff by 2.3 million euros. “If this trend continues in the second half as well, Elering will be paying out a considerably larger amount in subsidies to renewable energy producers in 2012 than the sum collected for this purpose, which will put additional pressure on the increase of renewable energy tariffs next year. The payouts that exceed the sum this year will be added to next year’s renewable energy tariff,” Veskimägi explained.

A total of 57% of Elering's annual forecast for electricity produced from renewable energy sources has been produced after six months; 75% of the forecast for electricity produced from waste and biomass, as well as 35% of that from wind power have already been fulfilled.

A total of 61% of the electricity produced from wind power has received subsidies; as to the remaining 39%, the producers have not met the technical requirements for receiving subsidies provided by the Grid Code. The subsidised amount was 52 GWh in the second quarter, which is an increase of 16% compared to last year.

A detailed report on subsidies paid per company is available here.