Reduction as de minimis 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 must demonstrate the use of renewable electricity through guarantees of origin. The share of renewable energy 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 the NACE Rev. 2 classification.

A company may apply for a reduction of the renewable energy levy as de minimis aid if the total amount of de minimis aid granted to it over the past three years does not exceed €300,000. Supporting information must be attached to the application, including confirmation that the threshold has not been exceeded and that no support for the same calendar year has been applied for as state aid.

The reduction of the renewable energy levy as de minimis aid is applied retrospectively, meaning that any overpaid renewable energy levy will be refunded to the company as a one-time payment after a positive decision from the Ministry of Climate has entered into force.

What does the application process for de minimis aid look like?

1. Submission of the application

The application must be submitted for the previous calendar year by 15 January of the following calendar year.

The application, together with the required annexes, must be submitted in a digitally signed format using the form provided below, 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.

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

The transmission system operator has up to 45 days to process the application.

Taking into account the minimum threshold of €0.5/MWh, the amount of de minimis aid is calculated:

• Based on the actual consumption of the previous calendar year;
• Based on the metering point specified in the application.

If the available budget does not cover all properly submitted applications, a reduction coefficient will be applied to all applicants in accordance with §14(3) of the regulation.

3. Decision-making
The transmission system operator submits a proposal to the Ministry of Climate within 45 days after the application submission deadline.

The Ministry of Climate has up to 15 days to make a decision. The decision is communicated by the Ministry of Climate to the applicant and the network operators.

4. Application of the reduction rate / payment
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.

The aid is considered granted at the moment the Ministry of Climate makes its decision.

The transmission system operator pays out the aid as a one-time payment within 14 working days of receiving the decision.