Eesti 200 holding up Estonia's onshore wind support scheme
Coalition partner Eesti 200 is delaying Estonia's onshore wind subsidy reverse auction until the government decides how to support energy storage and offshore wind.
Earlier this year, the government scrapped up to €2.6 billion in offshore wind subsidies but agreed to move ahead with onshore wind.
After ousting the Social Democratic Party (SDE) from the government, the Reform Party and Eesti 200 later pledged in their new coalition deal to launch a reverse auction for up to 2 terawatt-hours (TWh) of renewable energy on land each year. The deadline was the third quarter of 2025.
A bill allowing the Ministry of Climate to organize the reverse auction has sat on the government's desk since July. "As soon as the government approves these measures, the reverse auction can be announced," said ministry spokesperson Marge Sillaots.
Jane-Liina Liiv from the Government Communication Unit said it's difficult to be more specific at this point. "I can't confirm the timeframe today," she noted, adding that work is underway and the issue remains on the table.
According to Eesti 200 chair Kristina Kallas, the party wants the state's Estonian Business and Innovation Foundation (EIS) to finish a planned support scheme for energy storage, offshore wind, nuclear energy and heavy industry before proceeding.
"Without large-scale storage, there's no point in bringing offshore wind farms to the market," she said.
The measure, developed by the Ministry of Climate and Ministry of Economic Affairs and Communications, would offer state-backed loan guarantees to make large, capital-heavy energy projects more bankable.
Kallas said Estonia already faces "a lot of zero-price hours," adding that new procurements must ensure additional wind power can be stored. Once the new scheme is ready, she said, the onshore reverse auction could finally move forward.
An interim report on the measure is due to reach the government by year's end, with development continuing through 2026. Until then, Eesti 200 will not approve the onshore wind tender.
Kallas said an overview was presented two weeks ago and that EIS indicated the measure could be developed more quickly.
Under current plans, the onshore wind reverse auction would cover up to 2 TWh of capacity, with production starting by no later than December 31, 2029. The subsidy would last 12 years, capped at €20 per megawatt-hour (MWh).
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Editor: Huko Aaspõllu, Aili Vahtla
