Estonia plans payments of up to €5 million to municipalities that approve wind farms
Estonian Minister of Energy Erkki Keldo has submitted for approval a draft regulation allowing support of up to €5 million for each municipality that enables wind farm construction. The bonus scheme totals at least €12 million for 2027 and 2028.
Estonia's Minister of Energy, Erkki Keldo, has sent a draft regulation for approval that would let the state pay local governments up to €5 million each to encourage wind farm construction on their territory. The scheme, named Tuulehoo preemia (Wind Speed Bonus) by the Ministry of Climate, aims to make municipalities more willing to pursue wind energy projects, particularly through the most time-consuming planning and permitting stages.
How the support would work
The ceiling is €5 million per municipality, paid in two parts. The first can be requested once a plan has been established, and the second after construction permits for the turbines are issued. A municipality becomes eligible when its established plans provide for at least five wind turbines.
According to the ministry, the money can go toward improving local life, such as renovating schools and other public buildings, building pedestrian and cycling paths, creating local energy and storage solutions, and strengthening crisis preparedness.
The bonus pool is at least €12 million, planned for 2027 and 2028. It will be funded by revenue from selling CO₂ emission allowances, up to €12 million, together with the state budget.
Existing requirements stay
The ministry stressed that the bonus does not oblige any municipality to adopt a wind-farm plan or issue a construction permit. Required studies and environmental impact assessments must still be carried out, and residents must be involved.
The payment also does not replace the wind-turbine fee. That fee gives local governments and residents steady annual income for as long as a wind farm operates, whereas the new bonus lets local benefits appear earlier, at the planning and permitting stage.
The ministry hopes the measure will support the state's long-term goals of improving energy security, raising the share of clean energy and keeping electricity prices affordable.
Keldo said in the press release that onshore wind will be among the most cost-effective ways to produce electricity in the coming years, and that developing wind farms is strategically important and new parks must not stall across Estonia. He added that local communities should feel that changes to their surroundings bring practical benefits.
