03.02.2025 / Members News
Estonian Government approves Long-Term Energy Development Plan, including support for Long-Duration Energy Storage
The Estonian coalition agreed on the long-term energy development plan, which includes a measure to support long-duration energy storage.
On 27 January, the Estonian government coalition announced plans to hold auctions for offshore and onshore wind parks, each with a capacity of 2 TWh. These auctions, set to be launched in April, are part of broader efforts to transition to renewable energy and enhance the country's energy security. The government also plans to support the development of large-scale energy storage facilities, focusing on the Paldiski 500MW Pumped Hydro Energy Storage project.
The Paldiski Pumped Hydro Energy Storage plant, developed by Energiasalv Pakri OÜ, is an EU Project of Common Interest (PCI project), making it a key component of the region's renewable energy strategy. It is the only permitted greenfield pumped hydro energy storage project in the Northern Baltic region and will become the largest facility of its kind in Estonia.
Construction of the project is expected to commence in 2026, and the first phase (500MW/ 6 GWh) is expected to be operational by 2032. The plant has a unique modular design, allowing the capacity to be gradually increased to 15 GWh (30 hours at continues generation), further reinforcing the country's energy resilience.
The Paldiski project reflects the government's focus on ensuring a balanced power system alongside the expansion of wind capacity that is variable in nature. Climate Minister Yoko Alender emphasised combining large-scale renewable energy with reliable storage to prevent excessive reliance on energy exports. At the moment, the Paldiski project is the only long-term storage option for the Estonian government. An independent benefit analysis has also been submitted to the government, based on which a decision will be made on the measure. The aim is to have the support measure for large-scale storage approved by April 2025, paving the way for the project's development and ensuring its contribution to Estonia's energy security.
Additionally, the government will bring the 100 MW Kiisa backup power plant to market and continue exploring nuclear energy options. A unique planning process for a potential nuclear power plant has been initiated, with related legislation expected to be considered by the parliament by 2027. While nuclear energy remains a topic of debate among political parties, the government aims to ensure a diverse and sustainable energy mix for Estonia's future. As energy security is the government’s priority, we are glad to see the positive developments that secure our commitment to energy-storage.