Estonia Imposes Grid Fee as Massive Offshore Wind Project Gets Green Light
Estonia is implementing a new frequency reserve fee on consumer electricity bills to stabilize its power system, a move that coincides with regulatory approval for the massive 1600 MW Saare-Liivi offshore wind farm designed to meet national and EU climate goals.
- —Estonia has implemented a new fee for frequency reserves, which will be included on electricity bills starting in January, to maintain balance in the national power system.
- —The frequency reserve fee, previously managed through Elering, will now be collected by electricity vendors and transferred to Elering, with costs for reserves decreasing after market issues were resolved.
- —Utilitas Wind has received permits from the Consumer Protection and Technical Regulatory Authority (TTJA) to develop the Saare-Liivi offshore wind farm, a project aimed at achieving Estonia's and the EU's climate goals.
- —The Saare-Liivi wind farm is planned to include up to 80 turbines with a total capacity of up to 1600 MW, connecting to the Elering grid via a new substation.
- —Rakvere City Government is holding a meeting with Elektrilevi and local businesses to discuss stable electricity supply following significant power outages in November that disrupted services and caused vaccine spoilage.
Recap
Estonia's simultaneous rollout of a new consumer grid fee and the approval of a major offshore wind farm are not separate events, but two parts of a single national strategy. The fee is a tactical measure to manage current grid volatility, while the wind project is a long-term investment in energy independence and renewable capacity. Recent severe power outages at the local level provide the political justification for these systemic changes, highlighting the tangible costs of an unreliable electricity supply.