Estonia to Retract Pledge on Wind Energy Subsidy Limits

Estonia will keep an annual cap on the volume of wind energy eligible for subsidies, retracting a pledge to a renewable energy lobby last year, to lower power costs and limit the amount of subsidized output, Economy Minister Juhan Parts said.

Wind energy subsidies will be capped at the current total output of 600 gigawatts per year in the amended electricity market legislation under consideration in Parliament, Parts said in an interview in Tallinn yesterday. In July, it agreed with the Estonian Renewable Energy Association to remove the ceiling in exchange for cutting the size of the support.

Estonia approves law to full opening of electricity market

The Estonian Riigikogu approved on Wednesday of the amendments to the electricity market law which opens up the Estonian electricity market to competition fully from January 1, 2012, LETA/Public Broadcasting reports.

The finance ministry has forecast that opening of the electricity market will increase the price of electricity by nearly 17% next year while electric energy tariff increases nearly 50%.