Estonia organises the reverse auction of 450 GWh of power from renewable energy resources recognising that high energy prices are related to dependence on fossil fuels, Estonian public broadcaster ERR reports.
Taavi Aas, the Minister of Economic Affairs and Communications, explained: «High electricity prices across Europe prove that we continue to be heavily dependent on fossil fuels. For this reason, it is important to bring more renewable energy production equipment to the market, which would contribute in reducing electricity prices. (..) The reverse auction will also help Estonia in meeting its climate goals, which require 40 percent of the electricity consumption to be from renewable sources by 2030».
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The procurement described as the largest ever procurement for renewable energy in Estonia is organised via the electric grid operator Elering. The firm will be responsible for conducting the reverse auction and applications can be entered until June 1 2022.
Renewable energy producers are invited to present the necessary sum, for which they would produce electricity for the Estonian market and if the market price goes lower than the price guarantee, the state will cover the difference. The plan is to have the winner start producing electricity by January 1 2026, at the latest, ERR reports.
Estonia to invest heavily in renewables, bring power prices down long-term
