EU approves €2.6bn support for Estonia’s offshore wind sector

The European Commission (EC) has approved a €2.6 billion ($2.7 billion) scheme to support Estonia’s offshore wind energy sector, advancing the country’s goal of achieving net-zero emissions. 

This initiative, aligned with the Estonian Maritime Spatial Plan, will fund the construction and operation of offshore wind farms through a competitive bidding process.

The scheme, part of the State Aid Temporary Crisis and Transition Framework (TCTF), is open until December 2025 and provides aid for 20 years through two-way contracts for differences. 

Beneficiaries will receive payments based on the gap between a strike price, determined in the tender, and the market price for electricity, with a cap of €65 per megawatt hour (MWh). The aid is limited to supporting up to 2 terawatt hours (TWh) of electricity annually.

This program aims to reduce Estonia’s reliance on fossil fuels and accelerate its renewable energy transition, with safeguards to minimize competition distortions.

Clean, Just and Competitive Transition executive vice-president Teresa Ribera praised the scheme for its role in fostering Estonia’s energy transition while maintaining compliance with state aid rules.