Subsidising Renewable Electricity In Estonia
Author(s)
J. Kleesmaa, S. Pädam & Ü. Ehrlich
Abstract
The purpose of this paper is to assess the impact of Estonia’s feed-in tariffs (FIT)
on combined heat and power (CHP) plants. The assessment follows previous
practice and provides a novel approach by including a case study based on
company data. The results of our assessment show that the Estonian FIT system
has effectively supported the establishment of CHP capacity and that the
administrative costs have been low. In contrast to experiences in other countries
we find that the avoided external costs exceed the per MWh cost of FIT. Another
feature is that the consumer costs of the FIT scheme have grown more rapidly
than elsewhere. Although avoided external costs cover FIT, resources are not
used cost-effectively. The case study of two CHP plants suggests that resources
are used for supporting production that would have been profitable without FIT.
Keywords: renewable electri , feed-in tariffs, CHP, energy policy, Estonia.
Keywords
renewable electri , feed-in tariffs, CHP, energy policy, Estonia
Related Book
Other papers in this volume
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