ECCI success: large consumers will be able to apply for a discount on the renewable energy fee
Amendments to the Electricity Market Act will enter into force on 9 May, giving companies whose annual electricity consumption exceeds 1 GWh the opportunity to apply for a discount on the renewable energy fee of up to 85 percent of the fee.
In recent years, the Chamber has repeatedly proposed various solutions to the state for reducing the final price of electricity. Among other things, we have proposed reducing the payment of the renewable energy fee. We therefore welcome the legislative amendments that will help reduce costs for large consumers and support bringing investments to Estonia.
Several conditions must be met to receive the discount
According to the amendment, a company may apply for a discount on the renewable energy fee if its electricity consumption has exceeded 1 GWh in at least two of the three years preceding the submission of the application. In the case of a new company, its forecast electricity consumption for the next 12 months must exceed 1 GWh.
The initial version of the draft act provided that the recipient of the discount had to have an electricity contract with a renewable energy producer. Since companies can also purchase renewable energy through intermediaries, the Chamber proposed allowing the consumption of renewable energy to be proven also on the basis of the share of renewable energy purchased through intermediaries and certified by guarantees of origin, rather than only through a direct contract with a producer. This proposal was taken into account.
To receive the discount, the share of renewable electricity in the applicant’s total consumption must be at least 10 percent in 2026, 25 percent in 2027, 35 percent in 2028, and 50 percent from 2029 onwards.
Another condition is that the company must carry out an energy audit, either separately or within the framework of a certified energy management system or environmental management system.
In addition, the applicant’s field of activity must be included in the EU list of sectors at risk of carbon leakage. This list mainly includes energy-intensive industrial sectors whose competitiveness may be at risk if their electricity costs increase disproportionately compared with companies in other countries. An earlier version of the draft act stated that the applicant’s principal activity had to be included in the list of sectors at risk of carbon leakage, but at the Chamber’s proposal, “principal activity” was replaced with “activity”, so that more companies would be able to apply for the support.
The discount is up to 85 percent
The size of the discount is a maximum of 75–85 percent of the renewable energy fee, depending on whether the company operates in a sector at significant risk of relocation or in a sector at risk of relocation. This means that beneficiaries must pay 15–25 percent of the renewable energy fee, depending on the risk level of the sector.
The renewable energy fee applicable to electricity consumed via a direct line will not be reduced.
An application must be submitted to receive the discount
If a company wishes to receive a discount on the renewable energy fee, it must submit the relevant application to Elering, which will then verify whether the applicant meets all the conditions for receiving the discount.
If a company receives the discount, it must subsequently submit documents to Elering by 1 February each year proving that its electricity consumption in the previous year exceeded 1 GWh and that it continues to meet the other conditions for receiving the discount.
The discount can be applied retroactively
The amendments related to the renewable energy fee discount will enter into force on 9 May, but the act also includes an implementing provision that allows companies to apply for the discount retroactively from 1 January of this year. To do so, the relevant application must be submitted to Elering. Applications can be submitted from 1 May 2026, and if the conditions for receiving the discount are met, Elering will make a one-off repayment to the company for the period from 1 January to 30 April 2026.
You can read more about the amendments to the Electricity Market Act entering into force on 9 May here.