Development of renewable energy

To participate in the auction, you must register in the electronic auction environment at riigimaaoksjon.ee.

Explanatory instructions on how to use the auction environment are available on the auction environment's home page. Use the latest versions of web browsers (Microsoft Edge, Mozilla Firefox, Google Chrome, Safari, etc.).

NB! If you encounter technical difficulties when participating in the auction and submitting bids, you must immediately inform Land and Spatial Development board by calling 5620 8102.

To participate in the auction, a deposit must be paid, which is the fee for the first three months, calculated at 3% of the initial price of the land.

The deposit must be paid in accordance with the information provided in the payment notice prepared by the auction environment. When paying the deposit by transfer from a foreign bank or in cash at a bank, the bank and account number to which the deposit will be returned must be indicated upon registration.

If any of the information provided is inaccurate, participation in the auction will not be possible.

No participation fee applies.

Bids can be made after the deposit has been received in the account indicated in the payment notice. Bids are made on the basis of the fee rate. The fee rate determined at the auction will apply as a percentage of the taxable value of the land during the development period and of the electricity sales revenue during the operating period.

The starting fee rate is €300 per €10,000, or 3%.

Bids can be submitted in increments of €1-10 per €10,000, or 0.01%-0.1%.

When participating as a representative of another person (including a company), the information required in the auction environment must be filled in for both the representative (the person submitting the bid on behalf of a legal or private person) and the participant (the person on whose behalf the bid is being made) must be entered in the auction environment and a corresponding power of attorney must be submitted before the end of the auction via the auction system or to the auction organizer (Land and Spatial Development board) by e-mail ([email protected]) or by post (Land and Spatial Development board, Akadeemia 4, Tartu 51003).

A power of attorney does not need to be submitted if the right of representation of the person submitting the bid on behalf of the company is reflected in the electronic commercial register.

If a person who has submitted bids on behalf of another person in an auction did not have the right of representation at the time of submitting the bid, they will not be considered a participant in the auction.

Participants in the auction are bound by their bids from the moment the bid is made until the results of the auction are confirmed. The person or persons in whose favor the results of the auction are confirmed are bound by their bids until the contract is concluded.

The deadline for submitting bids is published in the auction environment separately for each object.

The auction has an extended end time with 15-minute intervals, i.e. if a new bid is received within 15 minutes before the deadline, the moment of receipt of this bid is considered the new start of the extended end period. The auction will be extended by 15 minutes until a new bid is received during that time. The auction will end if no new bids are received within 15 minutes.

The winner of the auction is the participant who offers the highest price.

The results of the auction are confirmed by the RMK Management Board for land managed by RMK and by the Director General of the Land Board for land managed by the Land Board. The results are confirmed within 20 working days of the end of the auction.

The deadline for concluding the contract is 30 days from the confirmation of the results. The costs of concluding the contracts (notary fees and state fees) shall be borne by the winner.

As a result of the auction, each state property manager (RMK and the Land and Spatial Development board) will conclude separate contracts with the winner. The conclusion of contracts will be organized in such a way that the notarization of transactions will take place simultaneously within the same transaction for state-owned land located in the development area.

Agreements will be concluded with the winner regarding state-owned immovable property located in the development area as follows:

• agreement for the development period, which gives the winner the right to carry out operations and activities on state land in preparation for the construction of renewable energy facilities. The development period shall last for three years from the date of conclusion of the agreement. Agreement on the immovable property subject to auction, the extent of which shall be specified in the auction notice for each immovable property separately. During the development period, ownership of the immovable property remains with the owner of the immovable property or the person using the land under the agreement, and the use of the immovable property for the previously valid purpose continues. The prerequisite for the completion of the development phase is obtaining a building permit for the construction of buildings necessary for the production of renewable energy.
• Preliminary agreement that, upon obtaining a building permit, a building right agreement will be concluded for the building plots formed on the basis of the plan or project, and the building areas will be transferred to the possession of the builder. The following periods are distinguished in the exercise of the building right:
  • construction period, which lasts 2 (two) years from the date of entry of the building right in the land register. During the construction period, the buildings are constructed and the documentation necessary for their operation (operating permit, easements, etc.) is obtained.
  • production period, which lasts for 35 (thirty-five) years from the expiry of the construction period. During the production period, activities related to the operation of renewable energy buildings (energy production, storage, feeding into the grid, etc.) take place (production period).
  • Liquidation period for activities related to the termination of operation and liquidation of structures, which lasts for 2 (two) years. The liquidation period begins on the date when a structure built under a building right ceases to produce, store, or feed renewable energy into the electricity grid. The liquidation period lasts until the buildings have been finally liquidated and the land has been cleaned up, but not longer than the term of validity of the building right.