The European Commission has approved a €2.6 billion Estonian State aid scheme aimed at supporting renewable offshore wind energy projects. This initiative aligns with the EU's Temporary Crisis and Transition Framework (TCTF) to advance the transition to a net-zero economy and foster the goals of the REPower EU Plan and the Green Deal Industrial Plan.

Under this scheme, aid will be allocated to the construction and operation of offshore wind farms within areas designated by Estonia's Maritime Spatial Plan. Funding will be distributed through a transparent bidding process, with aid provided via two-way contracts for difference (CfDs) over 20 years. These contracts ensure that when market prices fall below the agreed strike price, the State covers the difference. Conversely, when market prices exceed the strike price, beneficiaries will return the surplus to the authorities. The maximum aid is capped at €65/MWh, and support will be limited to 2 TWh per year.

The Commission found the scheme to be necessary, appropriate, and proportional, meeting the conditions of Article 107(3)(c) of the Treaty on the Functioning of the European Union. The measure will remain valid until 31 December 2025.

This initiative supports Estonia's efforts to reduce dependence on fossil fuels and expand renewable energy production, contributing to the broader EU goals for a sustainable energy transition.

Source: ec.europa.eu