Energy, Energy Market, Estonia

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Estonia: State announces 1st lowest bid auction for renewable energy

BC, Tallinn, 19.11.2019.Print version
Estonian Minister of Economic Affairs and Infrastructure Taavi Aas has signed the first round of lowest bid auction for renewable energy, reported LETA/BNS.

"The investment expenses of renewable energy production equipment have decreased significantly in recent years, which is why it is logical to replace the current guaranteed subsidy scheme with underbids, which will provide consumers with a better price," Aas said.


According to the minister, the first round will foremost entail testing the capability of the market and this will be followed in the future by larger green electricity procurements.

With the first round, the state wishes to get an additional 5 gigawatt-hours of renewable electricity a year to the market starting from 2021, and suitable for that are, for example, small wind turbines, solar panels and biogas plants.


The auction winner will be paid support over a period of 12 years and the ceiling of the support is 53.7 euros per megawatt-hour, but with market price not more than 93 euros per megawatt-hour.


Allowed to take part in the lowest bid auction are only new production equipment with electric power ranging between 50 kilowatts to 1 megawatt. Bids must be submitted to transmission system operator (TSO) Elering. Bids can be made until March 18, 2020.


The so-called old support scheme ended in 2018, in the future, only the renewable electricity produced by producers winning the lowest bid auction will enter the market.






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