European Commission approves €2.6 billion scheme to back Estonia’s renewable energy projects
11 December 2024
The European Commission has approved a €2.6 billion scheme in Estonia to support renewable offshore wind energy.
The measure will aid in the construction and operation of offshore wind farms (Photo: AdobeStock)
The measure will aid in the construction and operation of offshore wind farms for electricity production in areas specified by the Estonian Maritime Spatial Plan.
The scheme has been approved under the State Aid Temporary Crisis and Transition Framework (TCTF), which was adopted by the Commission in March 2023.
The aid will be granted through a transparent and non-discriminatory competitive bidding process, which is to be completed by the end of December 2025. It will take the form of a variable payment under two-way contracts for difference (CfD) that will last for 20 years.
Executive vice-president for clean, just and competitive transition Teresa Ribera said: “This €2.6bn scheme will enable Estonia to support the development of offshore wind as a way to reduce its dependency on fossil fuels and foster the energy transition. At the same time, it limits undue distortions of competition in line with State aid rules.”
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