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The Estonian Renewable Energy Association: governments new bill violates earlier agreement

Uncategorized - etea October 26, 2012

The Estonian Renewable Energy Associations press release, 26.10.2012

The Estonian Renewable Energy Association finds that the bill of amendments to the Electricity Market Act, which leaves in force the volume limit of wind energy, violates a summer agreement with the Ministry for Economic Affairs and Communications.

Rene Tammist, head of the association, said that the situation where the 600 GWh limit per year was retained and simultaneously the size of the subsidy was contracted at the same time was unacceptable.

“This is a real cut to the existing producers and we can certainly not agree with it,” Tammist said.

Tammist expressed the hope that the parliament would proceed in amending the bill from the agreement, pointing out that otherwise the association had no other opportunity than to look for assistance in the protection of their their rights “from other existing means.”

On Thursday the government supported an amendment to the Electricity Market Act by which there are plans to cut the volume of renewable energy subsidies 18 percent. In accordance with the bill the subsidized amount of electricity depends from the renewable energy aims and the subsidies are linked with the market price of electricity and of carbon dioxide. The new scheme embraces renewable electricity production units that have already been built or are being built.

“I hope that the amendment made in the government is acceptable also to wind energy producers,” the minister Thursday commented preservation of the 600 GWh wind enery limit.

In July Parts and Tammist signed a memorandum, in which they agreed, among other things, dependence of renewable energy subsidies from the stock exchange price of electricity.

In accordance with the memorandum the internal profitability rate of investments into the production installations is 10 percent for the whole period of the payment of the subsidy and subsidies would be paid to each installation during 12 years since starting production.

 

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