In 2023, the renewable energy fee collected from electricity end-users to finance renewable energy subsidies will be 1.24 cents per kilowatt-hour without VAT. In 2022, the fee for renewable energy for each kilowatt-hour (kWh) of electricity consumed is 1.13 cents per kilowatt-hour, plus VAT.
Next year's renewable energy fee is most affected by the fact that the expected volume of electricity consumption will decrease by 5.2 percent. Although the volume of paid subsidies will decrease, due to the decrease in consumption that has already started in 2022, the amount that must be collected to finance the subsidies will increase, Elering announced.
Next year, according to Elering's forecast, 87 million euros will be needed to pay subsidies for electricity produced from renewable energy sources, and 3 million euros for subsidies for electricity produced in the mode of efficient cogeneration. According to the forecast, subsidized renewable energy producers will produce 1,613 gigawatt-hours of electricity in 2023, and producers of electricity in the efficient cogeneration mode will produce 100 gigawatt-hours.
Solar electricity producers will presumably receive the largest share of subsidies, over 32 million euros. Power plants using biomass will receive more than 30 million euros in support, and wind farms will receive nearly 24 million euros. Biogas plants and hydro plants are estimated to receive subsidies totaling less than one million euros.
The volume of subsidized renewable electricity production will be affected by the end of the subsidy period at one larger combined heat and power plant and one medium-sized wind farm. The calculation of the renewable energy fee has taken into account the fact that due to the decrease in electricity consumption, as of the end of October of this year, the renewable energy fee has been received by 3 million euros less than the money spent on subsidies. This amount must be covered by fees collected in the following year.
The renewable energy fee is the cost of financing subsidies for electricity produced from a renewable energy source or in an efficient cogeneration mode and given to the grid. The renewable energy fee calculator is Elering, which prepares and publishes on its website by December 1st an assessment based on forecasts submitted by network operators, direct line owners, producers of electricity from renewable energy and efficient cogeneration, and consumers connected to Elering's electricity grid.