Ecology, Energy, Energy Market, Estonia, Investments

"We didn't really reach a final decision. It was decided that the plot will go on sale, but some details need to be clarified and this is why it will be some time until we can announce the sale, but it will go on sale," chairman of the supervisory board of RMK Andres Talijarv told BNS.

"It is a question of the next few days," Talijarv said, according to whom the issues which require solving concern organizing and carrying out the sale as well as how to organize auction.

"As we are dealing with a somewhat sensitive object, we need to be sure that when a sale is carried out, there will be no reason for anybody to challenge it again," he said.

The government at the end of April declared invalid a decision to allocate land to the state-owned energy company Eesti Energia AS for establishing a wind farm at Tootsi in southwestern Estonia and has decided to hold an auction for the land.

Even though the state still believes that the government's decision causing the disputes was lawful, a public auction for the Tootsi plot must be announced in the interest of faster certainty, the government communication office said then.

The government on Dec. 8 decided to approve increasing the share capital of Eesti Energia and hand over to the company the plot in southwestern Estonia worth around 4.1 mln euros as a noncash consideration.

The company is planning to build a wind farm worth several hundred million euros and with an output of around 150 megawatts on the plot by 2020. According to the Estonian Wind Technology Association, the Tootsi wind farm makes up 54% of the whole capacity of wind farms planned to be erected in Estonia.

A number of Estonian businesses operating in the field of renewable energy have sued the government over the decision to hand over the Tootsi wind farm plot to the state-owned Eesti Energia. According to the private businesses, handing over a valuable plot to a state-owned company without an auction jeopardizes free competition and other businesses operating on the market.

The size of the Tootsi wind farm plot is 160 hectares and the immovable property consists of 40 cadastral units. According to the detailed plan, 38 of them are meant for wind turbines and two for anemometer towers. The construction of a wind farm in that location would help Estonia achieve its wind energy goals.

According to the government coalition agreement signed in November, the government is planning to list 49% of the shares in the Eesti Energia renewable energy subsidiary Enefit Taastuvenergia, which would include wind, hydro and other types of renewable energy. Prior to that, an auction for the Tootsi wind farm plot will be held.