Taavi Aas, Minister of Economic Affairs and Communications of Estonia, and Dr Michael Farrugia, Minister for Energy and Water Management of Malta, signed a contract in Valletta today, pursuant to which Malta will purchase renewable energy statistics from Estonia for two million euros.
According to Aas, this transaction is notable because the number of renewable energy statistics transactions in the European Union is remarkably low – in a total of three transactions, Estonia has been a participant in two. “We have increased the proportion of our renewable energy from our target of 25 percent to 31 percent by this year, and this allows us to sell the statistical surplus to countries who have, for one reason or another, failed to reach their targets,” said Aas.
The Minister added that hopefully, this transaction will lead to subsequent transactions. “The volume to be sold to Malta constitutes approximately five percent of our existing statistical renewable energy surplus and Estonia has a strong potential to conclude more transactions,” noted Aas.
Aas said that in principle, there are two possibilities to use the revenue thus gained: financing new renewable energy projects or reducing the renewable energy charge for consumers.
The contract entered into between Estonia and Malta provides for the purchase of statistics in the volume of 100 GW/h for a total amount of two million euros. The contract is flexible and Malta may either increase or reduce the amount to be purchased by one-fifth.
The proportion of renewable energy in Estonia is currently sufficiently high as to remain above the target level (25 percent) which we undertook to reach with respect to the European Union. The majority of the surplus comprises wood for fuel used in district heating and households, cogeneration, and wind farms. Since Estonia has a significant potential for producing renewable energy, we are also currently in negotiations with other potential purchasing countries.
The European Union supports the purchase and sale of renewable energy quotas in order to allow member states to jointly and efficiently reach renewable energy targets on the principle that energy must be produced at the locations with the best prerequisites and possibilities.
Estonia has previously sold quotas to the Grand Duchy of Luxembourg.