Wind Energy Boom has Estonia thinking of sharply Cutting Support Tariffs

Estonia is facing increasing burden of renewable energy subsidies with electricity tariffs rising for the general population.With prices expected to be up almost 10% due to the Feed in Tariffs for Wind Energy,the government is thinking of cutting the support tariffs by  50%.Estonia  has seen a Wind Energy Boom in recent times spurred by favorable geography and high returns.Estonia had increased its single FIT for renewable energy to Euro 9.5c/KwH and increased its purchase obligations.Estonia had around 142 MW of Wind Energy installed in 2009 with additional proposals of 4000 MW.Massive offshore wind farms are being planned near the Estonian island of  Hiiumaa which has excellent wind conditions.Note Estonia has only 1500 MW of Peak Energy Demand making the situation untenable.Like Czech Republic which is drastically cutting the support for Renewable Energy after a Solar Boom,Estonia too has decided on a order of magnitude of 50%.Electricity prices have already increased by 0.81c/KwH.

Estonia Aims to Cut ‘Too High’ Energy Subsidies, Minister Says – Bloomberg

Estonia’s government wants to reduce subsidies for renewable energy producers to cut costs for consumers, Economy Minister Juhan Parts said.The cost of renewable energy for consumers, calculated each year based on expected subsidies, more than doubled this year to 0.81 euro cents per kilowatt hour plus VAT from a year earlier.The parliament in January partly reduced subsidies for electricity and heat cogeneration from renewable energy sources, causing protests from Fortum Oyj, the second-largest Nordic utility. Fortum built a power and heat co-production plant in Tartu, southern Estonia, after such subsidies were introduced in 2007 and is finishing another plant in Parnu, southwestern Estonia.