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Estonia · Law · SE

787

An Act to amend the Electricity Market Act, the Alcohol, Tobacco, Fuel and Electricity Excise Act and the Income Tax Act

avaldatud riigiteatajasEstonia· Riigikogu· ET

Introduced

18 December 2025

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AVALDATUD_RIIGITEATAJAS

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Source updated

8 April 2026

Summary

The law is amended to reduce the renewable energy fee for energy-intensive companies and to improve the competitiveness of the Estonian industrial sector and encourage investments. Energy is one of the biggest costs of many industrial companies, and the price drop helps to make the products of Estonian companies more competitive in both domestic and foreign markets. According to the amendment, from January 1, 2026, companies with annual electricity consumption exceeding 1 GWh can pay renewable energy fee at a lower rate than before. There are approximately 80 such companies in Estonia. Depending on the sector, the discount reaches 75–85 percent, which means an average of 6.8 euros less per MWh consumed. The biggest impact is on the wood and paper industry, the food industry and the chemical industry. The discount applies retroactively, the reimbursement is made through Elering and it is related to the conditions: the company must use energy management systems or audits, and the discount will gradually be linked to the existence of long-term direct renewable energy contracts. This ensures that the support reaches only those companies that systematically improve energy efficiency and reduce emissions. The annual cost of the measure is approximately 9 million euros, it is covered from the state budget, and the deficit in the renewable energy fee is compensated from the revenues of the EU greenhouse gas trading system. Change does not lead to an increase in the fee for renewable energy for other consumers. The implementation of the bill requires the European Commission's state aid permit.

Machine translation from Estonian. The official text remains authoritative.

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