The European Commission has approved a ten-year extension of Estonia‘s three-year-old renewables support regime.
The new program, which will have a €450 million budget, will continue to offer premium payments to renewable energy generators to top up the wholesale electricity price, with the premium level set by competitive bidding in clean energy auctions.
The commission announced yesterday the program, which needed approval in line with EU state aid guidelines, will be updated to enable multi-technology procurement tenders and to offer incentives for fossil fuel power plants to switch to biofuel.
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The system also supports the use of “efficient co-generation” by power plants to provide district heating.
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