Estonia to support renovation of district heating systems with EUR 22.5 mln

TALLINN - Estonia is once more supporting heating companies in the renovation of district heating systems, providing a total of sum of 22.5 million euros.

Climate Minister Kristen Michal has signed a regulation establishing the principles for supporting the renovation of district heating systems and their transition to renewable sources.

"Today, almost 60 percent of our district heating uses renewable energy sources. However, there are still areas in Estonia that require modernization of district heating systems and transition to renewable sources. As our buildings become more energy-efficient and heat production more effective, heating also becomes more affordable. This is beneficial for both the climate and people's wallets," the minister said in a press release.

Support can be sought for the renovation of district heating pipelines and for boilers in district heating systems that use renewable sources, or for their replacement with renewable energy devices such as heat pumps, solar collectors, or biomass-powered boiler houses.

Of this, the renovation of the heating pipeline will be supported with 15 million euros, and the renovation or purchase of new boilers with 7.5 million euros. After the implementation of the project, only renewable energy sources must be used as the main fuel in the renovated heat production device.

The support rate is 30-45 percent of eligible costs, and the minimum support amount is 20,000 euros, with a maximum of one million euros per applicant.

The Environmental Investment Center will handle the funds, and applications can be submitted from September. The support, which is provided until the budget is exhausted, is financed by the European Regional Development Fund.