Estonia kicks off 1st auction for small-scale renewables

Wind turbines in Estonia. Author: Alejandro Erickson. CC BY 2.0

November 22 (Renewables Now) - The government of Estonia this week launched the country’s first tender for small-scale renewables, aiming to award projects that will generate 5 GWh of clean power annually from 2021.

The auction is the first competitive procurement round organised after the expiry of Estonia’s renewable energy support programme in 2018. The competition targets small-scale wind power, solar photovoltaic (PV) and biogas projects with capacities of between 50 kW and 1 MW.

Interested parties must submit their proposals to transmission system operator (TSO) Elering. Bids will be accepted by March 18, 2020. Winners will get an average monthly price per MWh plus a feed-in premium for 12 years that will be set according to the auction. The highest premium to be allocated is EUR 53.7 (USD 59.4) per MWh, with a ceiling of EUR 93 per MWh for the premium and average market price combined.

"The investment costs of renewable energy production equipment have decreased significantly in recent years, so it is logical to replace the current guaranteed support scheme with lower offers, which will ensure a better price for consumers," said Taavi Aas, the Minister of Economy and Infrastructure.

The goal of this first renewables auction will be to probe the market and it will be followed by other rounds targeting large-scale projects, the government said. Estonia’s national target for renewable energy in its total electricity mix is 25% by 2020, which it has already achieved.

(EUR 1.0 = USD 1.106)

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