The Estonian Competition Authority made a proposal to the Ministry of Economic Affairs and Communications to review renewable energy subsidies. Compared to the previous year, the price of electricity has increased by 102% in 2021, which is why it is justified to review the current conditions and amounts for granting renewable energy subsidies. It is possible that the amount of renewable energy subsidies is no longer in line with the purpose of the subsidies.
The price of electricity has recently risen sharply throughout Europe, including in Estonia. The price increase has been mainly influenced by the increase in natural gas prices, consumption growth, the price of the CO2 quota, the price of coal, the low level of renewable energy production, and other factors. The electricity bills of consumers have increased significantly. The renewable energy fee included in the electricity bill finances the production of renewable energy in Estonia. In the period of 2007–2020, consumers have paid a significant 827.9 million euros for the production of renewable energy.
One of the most important factors in making investment decisions is the potential return. The investment decisions made in the production of renewable energy have been based on the stock exchange price of electricity valid at that time and the possible subsidies for renewable energy. As the price of electricity has increased sharply in 2021, the Estonian Competition Authority recommends reviewing the current subsidy amounts and bringing them in line with the stock exchange price of electricity.