(SeeNews) - Oct 9, 2012 - The government of Estonia said yesterday it had given the go-ahead to a proposal to cut subsidies for renewable power generation by 15% to 20% from the start of 2013.
The move is aimed at helping control rising power prices in the country, which are to further grow in 2013 as Estonia will be obliged to buy carbon emission permits. The cuts come to guard the interests of Estonians as all green energy subsidies in the country are included in consumer energy bills.
The share of renewables in national power demand for the second quarter of 2012 hit 20.4%, up from 13.6% in 2011, Estonian transmission system operator (TSO) Elering said at the end of July. Total of EUR 20 million (USD 26m) in subsidies have been paid to the sector during the period. Biomass, biogas and waste-to-energy installations accounted for the biggest portion of green generation or 76%, while wind and hydropower brought 21% and 3%, respectively.
(EUR 1 = USD 1.299)