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International Internet Magazine. Baltic States news & analytics Saturday, 28.11.2020, 13:14

Results of public procurement of 5 GWh of green electricity approved in Estonia

BC, Tallinn, 20.11.2020.Print version
The Estonian government at a sitting on November 19th approved the results of a public procurement for finding producers of renewable electricity, which will bring to the market 5 gigawatt-hours (GWh) of more affordable green electricity, reports LETA/BNS.

Estonian Minister of Economic Affairs and Infrastructure Taavi Aas said that increasingly affordable prices will be offered to consumers with each subsequent procurement. 

"Two competitions have been concluded successfully, and we will proceed with larger volumes next year to increase the production of environmentally friendlier electricity even further," Aas said in a press release. 

The minister added that the renewable energy charge for consumers is to decrease by up to three times with the new competitions. 

Altogether 27 renewable energy production devices participated in the procurement and the offered power volume exceeded the volume procured by four times. Six bidders were declared winners with altogether seven production units. The permitted range of production capacity of units in the procurement was 50 kW-1 MW.

The winning bids ranged from 54.7 to 57.38 euros per megawatt-hour, consisting of the average market price of electricity, which in 2019 was 45.86 euros per megawatt-hour, and the additional subsidy. Subsidization period for renewable energy producers is 12 years.

The purpose of the procurement initiated in May is to increase the share of renewable electricity in Estonia and to ensure the lowest possible renewable energy charge for domestic and business consumers through a public competition.

The next public procurement of up to five GWh of green electricity is expected to be announced by the state at the end of this year, to be followed by a procurement of 450 GWh next year.

The public procurement was organized by the Ministry of Economic Affairs and Communications and carried out by transmission system operator (TSO) Elering

During the first nine months of 2020, altogether 1,574 GWh or renewable electricity was produced in Estonia, which covered approximately a quarter of the state's consumption.

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