BAKU, Azerbaijan, December 10. The European Commission has approved a 2.6 billion euro Estonian scheme to support the development of offshore wind energy as part of its transition to a net-zero economy, TurkicWorld reports.
The scheme, part of the State aid Temporary Crisis and Transition Framework (TCTF), will help fund the construction and operation of offshore wind farms based on the Estonian Maritime Spatial Plan.
Under the scheme, aid will be allocated through a competitive bidding process, with payments made via two-way contracts for difference (CfD) lasting 20 years.
These contracts will support projects when electricity prices fall below a predetermined strike price. If the market price is lower than the strike price, the government will pay the difference, with a cap of €65/MWh. Conversely, if the market price exceeds the strike price, the beneficiary will refund the difference to the government. The total support will be limited to 2 TWh per year.
The commission concluded that the measure is in line with EU rules and necessary to accelerate the green transition, facilitating the REPower EU plan and Green Deal Industrial plan. The measure is expected to contribute to achieving EU climate goals, with the aid to be granted before the end of 2025.
