QAZAQ GREEN.  The European Commission has approved Estonia’s €750 million strategic reserve under EU State aid rules to enhance security of electricity supply in emergency situations.

The reserve will operate until 2035 and aims to ensure stable electricity availability during peak demand or periods of low wind and solar generation. It will be open to electricity generation, demand-side response, and storage projects that meet the CO₂ emission limits set by EU regulations.

Beneficiaries will be selected through a transparent and competitive bidding process, based on the amount of aid requested per megawatt of capacity available during scarcity events.

According to the Commission, the measure complies with Article 107(3)(c) of the Treaty on the Functioning of the European Union and the 2022 Guidelines on State aid for climate, environmental protection, and energy (CEEAG). The Commission concluded that the support is necessary, proportionate, and designed to minimize market distortions while strengthening energy security.

The decision confirms that the Estonian scheme aligns with EU rules on capacity mechanisms and strategic reserves, ensuring a balance between competition, sustainability, and reliability of electricity supply.