Wind power in Estonia
overview of wind power in Estonia
As of 2025, Estonia has a wind power installed capacity of about 705 MW. All operational wind farms in the country are on land. Offshore wind farms are planned on Lake Peipus and in the Baltic Sea near the island of Hiiumaa.
Estonia operates a rare earth elements processing facility, one of the few outside China, and is developing Europe's first plant for producing rare earth permanent magnets, essential for electric vehicles and wind turbines. Production is expected to start in 2025.
Onshore wind energy
Three major offshore projects are planned in Estonia, with a total capacity of 1490 MW: a 700 MW project near the island of Hiiumaa by Nelja Energia, a 600 MW project in Gulf of Riga by Eesti Energia, and a 190 MW farm near the western coast of Estonia by Neugrund OÜ.
The International Energy Agency’s (IEA) 2023 energy policy review for Estonia highlights the nation's shift towards renewables, emphasizing reduced reliance on oil shale and the development of wind, photovoltaic (PV), and biomass. Estonia aims for climate neutrality by 2050 and 100% renewable electricity by 2030. Energy auctions, in effect since January 2021, stimulate investment in onshore wind. They use a reverse auction mechanism, offering a maximum subsidy of 20 euros per megawatt-hour (MWh), with a bid cap of 45 euros per MWh. Projects receive 12 years of support from initial generation. Past auctions allocated substantial support to photovoltaic (PV) and wind projects.
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