European Commission greenlights Estonia’s renewable energy scheme

In Belgium, the European Commission has approved, under EU State aid rules, the modification of the existing aid scheme to support electricity production from renewable sources and efficient co-generation in Estonia. The measure will help Estonia reach its renewable energy targets and will contribute to the new European objective of achieving climate neutrality by 2050, without unduly distorting competition.

With a view to reach Estonia’s renewable targets in a cost efficient manner, the modified scheme will allow Estonia to organize multi-technology tenders. Compared to the existing scheme, tenders will not only be organized for new renewable installations, but also for existing power plants intending to switch from fossil fuel to biofuel as a result of the support. This aims at incentivizing a fuel switch from fossil fuel to renewables thus helping reducing CO₂ emissions.