15th oktoober 2014
Estonia’s first wind farm, Virtsu 1, reached the end of its 12 year renewable energy support period this month. The Virtsu I wind turbines still continue to produce energy, but do it without renewable energy support paid by consumers.
According to Mr. Martin Kruus, the Chairman of the Board of Nelja Energia AS, renewable energy support for its company’s wind farms will end in succession. “The first turbines in the Virtsu area reached the end of their support period this year and in three years it will also happen for the Pakri and Esivere wind farms. In practice this confirms the not so well-known fact that wind turbines need subsidizing only in the short term before the investment related responsibilities are covered, which is when they become very competitive in the market on their own,” explained Mr. Kruus.
According to the General Manager of the Estonian Wind Power Association, Ms. Tuuliki Kasonen, renewable energy support has been paid to wind power producers during the first 12 years in Estonia and within the next five years these subsidies will end for many producers, both single wind turbines as well as wind farms. “This means that more wind power is being produced under market conditions and renewable energy support paid by consumers is likely to be reduced in the future,” said Ms. Kasonen.