Financial Support Options for Small Wind Turbines in Estonia

Estonia, a small Baltic country, has big plans for wind electricity. The Estonian government just approved a plan to accelerate the transition to electricity produced by renewable sources. This small country wants all the electricity its residents consume to be generated from renewable energy sources, mostly wind energy, by 2030. To achieve that plan, the Estonian government will have to replace 7 terawatt hours of fossil fuel-based electricity in the country’s system with energy coming from renewable sources. To make it possible, the country needs approximately 1 gigawatt of offshore wind energy and an additional 1 gigawatt of onshore wind energy. It is also crucial to maintain the rapid development of solar power and its storage capabilities.

This very ambitious plan for energy transition is possible thanks to many turbine finance support opportunities for those who want to invest in small wind turbines. Grants, loans, investment options: learn more about possible subsidies for wind energy in Estonia.

Types of Financial Support

Subsidies for residential wind turbines in Estonia are regulated by the Electricity Market Act §59. According to the document, the subsidies are issued for:

• introducing renewable energy sources;
• increasing efficiency in the energy sector;
• securing inland security of supply/capacity sufficiency.

Wind Turbine Grants

Estonia provides a range of grants and subsidies for renewable energy initiatives, including small wind turbine projects. Many of these funds are administered by the Environmental Investment Centre (EIC), which supports projects aimed at fostering environmental sustainability.

Right now they opened a program that finances support for the connection of renewable electricity generation equipment to the electricity grid (such as small wind turbines). On EIC’s website, we can find information that the project’s purpose is to help develop various renewable electricity generation equipment in areas of the country that are industrial and in their vicinity. The amount of the grant is 305,000 euros for each additional megawatt.

Who can apply for the wind turbine grants? Every company registered in Estonia (they can also do it with a partner).

Do you want to apply for the subsidy and see if a small wind turbine is a viable solution for you? Contact us to evaluate wind potential in your area and also if you want to know more about what is a wind turbine.

EU Funding Programs

Estonian residents and companies who want to invest in small wind turbines can count on more than just their government’s help. The country also takes advantage of many EU funding programs, concentrated on renewable energy, such as Horizon Europe and the European Regional Development Fund (ERDF).

Investment Options for Small Wind Turbines

Small wind turbines present many opportunities for investing. In Estonia, companies like Enefit Green are actively involved in renewable energy efforts and may offer partnership opportunities or financial solutions for smaller projects aligned with their sustainability goals. They may take different forms.

One way of investing in wind turbine energy are PPA’s (Leasing and Power Purchase Agreements). This type of investment makes it possible for interested households or businesses to install small wind turbines with little cost or none at all. How is that possible? In this case, a third party, usually a company, installs and maintains the turbine. Then the investor agrees to purchase the produced energy, at a fixed rate.

Financing and Loans

When it comes to financing and loans for small wind turbines, Estonia can count on The European Investment Bank (EIB). This institution supports the financing of various energy projects in the form of loans and other financial instruments to companies. In collaboration with the European Commission, the EIB established the European Investment Advisory Hub under the Investment Plan for Europe. It serves as a central resource, offering guidance and expertise on project management and development throughout the EU.

Financial Benefits of Small Wind Turbines

Larger wind farms are generally believed to be more efficient and productive. However, as wind energy’s role in the global energy mix expands, the cost of constructing ever-larger turbines may become unsustainably high.

That’s why small wind turbines may be the future of renewable sources. Smaller turbines can be installed in a wider variety of locations, allowing households and companies to actively participate in clean energy generation. This type of decentralized approach not only promotes local energy generation but also reduces dependency on large utility-scale projects, making more inclusive growth in the renewable energy sector possible. The compact vertical design of these types of turbines means low noise pollution, free friction components, and eco-friendly production. The best example of these types of products are wind turbines made by Freen.

Return on Investment (ROI)

Understanding the return on investment (ROI) is key to deciding whether a small wind turbine is financially worthwhile. Here’s what to consider before making the decision:

energy savings: look at how much you could save on electricity bills by producing your own renewable energy.

profits from selling excess energy: factor in potential earnings from selling excess energy back to the grid through feed-in tariffs or net metering programs.

payback period and ROI: calculate how long it will take for your savings to cover the initial cost and ongoing maintenance of the wind turbine.

By considering these points and evaluating the wind turbine return on investment, you will be able to make well-informed decisions whether investing in a small wind turbine is right for you.

Long-Term Savings and Efficiency

Is wind energy efficient in Estonia? With the country’s strong wind conditions, small wind turbines are an efficient way for homes and businesses to generate their own electricity. As energy prices keep going up, the initial investment in a small turbine becomes even more worthwhile, offering a long-term, sustainable, and affordable energy solution.

Additional Considerations

Because wind turbine installation is an expensive and time-consuming project, that also takes a lot of time to notice the return, there are many considerations that are important to analyze, before making this decision.

Costs of Installation and Maintenance

Proper installation and wind turbine maintenance is crucial for its optimal performance and longevity. Adhere to these guidelines:

routine inspections: perform regular inspections to detect and resolve any issues, paying close attention to the blades, tower, generator, electrical connections, and control system.

lubrication and cleaning: consistently lubricate moving parts and clean turbine components to prevent corrosion, promote smooth functioning, and prolong the system’s lifespan.

component replacement: promptly replace any worn or damaged parts to ensure optimal performance and avoid further damage to the turbine.

Impact of Wind Technology on Sustainable Energy

Wind technology has a profound impact on advancing sustainable energy, playing a key role in reducing reliance on fossil fuels and lowering greenhouse gas emissions. Large-scale wind farms, including offshore wind farms, contribute significantly to the global renewable energy supply, but small wind turbines also offer an important solution for localized energy generation. These smaller turbines allow households, communities, and businesses to generate clean electricity in areas where large turbines may not be feasible, supporting energy independence and reducing strain on centralized grids. As wind technology continues to evolve, both large and small turbines are helping drive the transition to a more sustainable and resilient energy future.

The Future of Financial Support for Wind Energy

The future of the Estonian dream of replacing all the electricity consumed by its residents with green energy, mostly the one coming from wind, by 2030 is looking very bright (and hopefully windy). Recently a big step in that direction has been taken thanks to a signed 180 million euro financing agreement between one of the leading producers in the renewable energy market in the Baltic region, Enefit Green, and the European Investment Bank (EIB). The money will support the construction of the Sopi-Totsi onshore wind farm in Estonia. This will surely support Estonia’s road toward decarbonization and energy independence. It will help finance not only the design and construction but also the daily operation of the modern and powerful Sopi-Tootsi wind energy facility in Estonia with a total nominal capacity of 255 megawatts (MW). This ambitious project includes 38 wind turbines and the associated civil and electrical infrastructure. It will be developed in the southwest of Estonia, approximately 30 kilometers from Pärnu Bay and the city of Pärnu.

This high-capacity wind farm will boost national wind energy production by approximately 80%, while also significantly reducing the country’s heavy reliance on oil shale. The new wind turbines will provide green energy equal to the average annual electricity consumption of more than 197,000 families and will be mostly located in cohesion regions, where income is usually lower than the EU average. It’s just one of the investments in the Estonian energy transition that can make this country a leader in the green energy market in Baltic countries or even in that part of Europe.