Estonia May End Renewable Energy Supports in 2012: BNS

Estonia’s parliament may end subsidies for renewable-energy producers from 2021 to simplify the aid system, Kaja Kallas, the head of the parliament’s economic affairs’ committee, told Baltic News Service.

Setting an end-date “is clearer to everyone” than the government-proposed option which would require the Cabinet to annually establish a minimum amount of renewable energy eligible for subsidies, Kallas told BNS late yesterday in an interview. The parliament is due to continue the first of three readings of the bill next month.

The government in October submitted to parliament a draft bill reducing subsidies to green energy producers by 15 percent to 20 percent to cushion the effect of higher electricity prices on consumers.

The changes can be implemented after Estonia gets clearance for state aid from the European Commission, Kallas said last month. An initial plan had called for cutting the subsidies from January.

To contact the reporter on this story: Ott Ummelas in Tallinn at oummelas@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

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