Energy, Estonia, EU – Baltic States, Financial Services, Legislation

According to the agreement, Estonia must ensure the statistical transmission of renewable energy with a price of 15 euros per megawatt-hour. The agreement enables Estonia to sell altogether 10.5 million euros' worth of unused renewable energy quotas.

Estonia will transfer 300 gigawatt-hours of renewable energy statistics to Luxembourg in 2018 and 400 gigawatt-hours in 2020. In the event that an additional agreement is reached between the countries, the amount may increase.

The agreement is connected with a renewable energy directive adopted by the European Parliament and the Council in 2009, according to which by 2020, 20% of the energy consumed in the European Union must come from renewable energy sources.

In order to fulfill the goal, EU member states may cooperate by transferring statistical amounts exceeding the target rate from one member state to another.

Based on the agreement to be signed between Estonia and Luxembourg, part of the renewable energy produced in Estonia will be transferred to the balance of Luxembourg, thus helping the latter to fulfill its renewable energy goals.

Estonia is selling only those amounts that exceed the renewable energy goal of 2020 or 25% of the consumable amount of energy. While in 2015 the share of renewable energy in Estonia was 28.6%, then the share is estimated to amount to approximately 30% by 2020.

Estonia must use the income earned from the agreement to finance renewable energy or energy efficiency projects to increase the share of renewable energy and improve energy efficiency.

Luxembourg on October 26 this year signed a renewable energy cooperation agreement with Lithuania. This was the first such agreement in the European Union, which allows Lithuania to sell 10 million euros' worth of unused renewable energy quotas.