Renewable energy levy reduction as state aid

The budget for the reduction of the renewable energy levy in 2026 is €8.13 million.

A company may apply for a reduction of the renewable energy levy if its electricity consumption has exceeded 1 GWh in at least two of the three years preceding the application. For a new company, the projected electricity consumption for the next 12 months must exceed 1 GWh.

In addition, the company must either be a producer of renewable electricity or have a contract with a renewable electricity producer or supplier, and it must demonstrate the use of renewable electricity through guarantees of origin. The share of renewable electricity consumption out of total consumption must be at least 10% in 2026, 25% in 2027, 35% in 2028, and at least 50% from 2029 onward.

The applicant’s field of activity must fall under sectors at risk of relocation according to NACE Rev. 2 classification.

The reduction of the renewable energy levy as state aid is applied on a monthly invoice basis. As an exception, in 2026, any overpaid renewable energy fee will be refunded to the company as a one-time payment after a positive decision from the Ministry of Climate has entered into force.

How does the process of reducing the renewable energy levy as state aid work?

1. Submission of the application

The applicant submits an application using the form “TET reduction application_RA,” including all required data and confirmations (company details, metering points, field of activity, EMTAK and NACE codes, and confirmation that the company is not in difficulty).

The application, together with all required documents, must be sent digitally signed to the email address: tugi@elextra.ee.

2. Verification of the application

The transmission system operator verifies the compliance of the application and the applicant’s electricity consumption data. If necessary, additional explanations or documents may be requested.

Where applicable, the existence and validity of an energy audit or management system are also verified based on the submitted documentation. The content or quality of the audit or management system is not assessed.

If deficiencies are identified, the applicant is given time to correct them (at least 3 working days).

The transmission system operator has up to 60 days to process the application.

3. Decision-making

Within 60 days of receiving the application, the transmission system operator submits a proposal to the Ministry of Climate to apply a reduction rate. The proposal includes the applicant’s data, the applicable reduction rate (75% or 85%), and its validity period.

The Ministry of Climate has up to 30 days to make a decision.

In the case of modifying, suspending, or terminating the reduction, the Ministry of Climate has up to 10 working days to issue a decision.

The decision is communicated by the Ministry of Climate to the applicant and network operators. In the case of a positive decision, the reduction rate is applied to the electricity bill starting from the month following the decision.

As an exception, in 2026, the transmission system operator will refund, as a one-time payment, any overpaid renewable energy levy from 1 January 2026 until the decision takes effect.

4. Application of the reduction rate

The renewable energy levy is reduced based on the valid tariff; after reduction, the levy must be at least €0.5 per megawatt-hour.

The reduction rate depends on the company’s level of risk:

• 75% for "at risk";
• 85% for "at significant risk" according to Annex 1 CEEAG.

5. Monitoring

The beneficiary must submit, by 1 February each year at the latest, data confirming that the conditions for the benefit continue to be met. If necessary, additional evidence must also be provided (e.g., implementation of an energy audit, CO₂ emission data, or documents proving investments).

If the requirements are not met or if the benefit has been granted excessively, the reduction may be terminated, and the aid received must be repaid with interest, no later than 1 July of the same year.