Estonian Minister of Climate Kristen Michal (Reform) has put forward a plan, according to which there would be separate price floors for offshore and onshore wind farms. While this could mean €100 million in subsidies per year for developers, Social Democratic Party (SDE) leader Lauri Läänemets said it may still result in cheaper end prices for consumers.

Michal told ERR that he did not want to comment further on the wind farms until decisions had been made. However, at Wednesday’s Eesti Päevaleht energy conference, Michal presented a plan that differs significantly from those previously put forward.

In the fall, the Ministry of Climate proposed for a discussion, a reverse auction for 6 terawatt-hours of renewable energy generation. According to that proposal, the price cap would be the same,  whether the bid was for an offshore or onshore facility. The main aim being that the electricity reaches the grid in 2030.

The price floor means that if the price of electricity falls below a certain level, the state will pay the producer the difference. Offshore wind farm developers said the measure favored onshore wind farms.

On Thursday, Michal unveiled a new plan, according to which, two separate rounds of small tenders would be organized. According to the plan, four terawatt-hours of generation would be expected by the end of 2029 and the same amount offshore by the end of 2033.