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Estonian ministry planning to bring renewable energy bill into parlt this fall

Estonian news - etea June 12, 2012

Baltic News Service, 12.06.2012

The Estonian Ministry for Economic Affairs and Communications (MKM) is continuing work at a new version of amendments to the renewable energy subsidies and is hoping to conclude it this fall.

“MKM is holding discussions with the interested parties. We will do our best that the parliament could start discussing the issue in the fall, as the chairman of the Economic Committee yesterday said,”

Rasmus Ruuda, spokesman for the ministry said in comment to BNS on Tuesday.

The committee Monday discussed use of timber in the energy sphere and Arto Aas, chairman of the committee, said it would start discussing the issue in the fall.

The Cabinet discussed the Ministry for Economic Affairs and Communications plan for changing the scheme of subsidies this April, but no agreement was reached concerning application of the plan.

Before handing in the new bill MKM is holding talks with renewable energy producers. By its initial bill the ministry wanted to cut subsidies for all the producers. But the association that brings together renewable energy producers has repeatedly underlined that the present subsidies should be kept for the producers now in operation.

But the ministry finds that the present scheme of subsidies no longer meets state aid regulations and the Finance Ministry has confirmed it. Among other things, MKM underlines that it is necessary to link subsidies with the market prices of electricity.

The Environment Ministry, too, was against the amendment, and recommended to stop subsidizing kilowatt-hour based operation subsidies and to apply investment subsidies instead.

The Environment Ministry has also recommended stopping payment of subsidies to Eesti Energia’s Narva Power plants, which is the biggest recipient of the subsidy at present.

 

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