In recent years, electricity bills have become an unpleasant surprise for many Estonian households and businesses. Cold winter months, rising consumption, and limited local production capacity have driven prices to a level that naturally raises the question — why does electricity remain so expensive despite ongoing discussions about new wind farms and affordable renewable energy?

The short answer: the projects that were meant to ease price pressure have stalled.

Large Wind Farms — Big Expectations, Big Challenges

In Estonia, high hopes were placed on wind farms planned as a result of the 2023 renewable energy support auction. These projects were expected to bring a significant amount of cheaper electricity to the market. Developers such as Enefit and Utilitas Wind committed to building new generation capacities within fixed timelines.

In reality, the situation has proven far more complex. Planning procedures, environmental impact assessments, and various approval processes have taken years. Many projects have not even reached the construction phase, even though according to the original plans they should already be producing electricity in the near future.

What Does This Mean for Electricity Prices?

Electricity prices are determined by supply and demand. During cold weather, consumption increases sharply, but if local production cannot meet demand, electricity must be imported — often at a higher cost.

Delays or cancellations of new wind farm projects mean that:

• Estonia becomes more dependent on imported electricity;
• price fluctuations become more pronounced;
• during critical periods, electricity can become particularly expensive.

At the same time, new interconnections with neighbouring countries are being discussed, which could bring more foreign electricity to the market. While this may help stabilise prices in the short term, it can also reduce incentives to invest in new local generation capacity.

Why Does This Affect Everyone?

High electricity prices do not affect only industry or the energy sector. They are reflected in:

• household heating bills;
• food prices (due to production and transportation costs);
• service prices.

Electricity is an input in almost everything we use on a daily basis. When energy is expensive, the overall cost of living rises as well.

How to Cope Financially?

Major decisions in the energy market are beyond the control of individuals, but everyone can manage their own budget more effectively. If unexpectedly high utility costs, home insulation, new energy-efficient appliances, or other unavoidable expenses create financial pressure, a temporary financial buffer can be a sensible solution.

Laen.ee offers a range of loan solutions that help cover larger expenses flexibly — whether it is improving a home’s energy efficiency, paying an unexpected bill, or stabilising the family budget during a challenging period. Well-planned financing can help keep everyday life stable even when the electricity market is not.

You can explore Laen.ee’s current offers in more detail on our website.