Performing deep geotechnical drillings of the Estonian 500-megawatt Pumped-Hydro Energy Storage in Paldiski marks as a next significant executive milestone of this strategic energy project with strong positive socio-economic impact. Solely the construction process of this natural battery will account for about 7% of the total volume of Estonian infrastructure construction in eight years, creating approximately 700 direct and indirect jobs and tax revenue for the state worth of 200 million euros.

Peep Siitam, CEO of Energiasalv Pakri, the developer of this large-scale storage project, claims that it is a good time to vigorously move forward with projects that replace uncompetitive fossil-based generation capacities in the Baltic region and create flexibility for the system. Estonia, being simultaneously famous for its surplus electricity generation for many decades and infamous by the worst ecological footprint of oil-shale based power generation has been the biggest power importer in the region this year, importing more than 60% of the power consumed.

“The Estonian Pumped-Hydro Energy Storage improves energy security, increases the capacity of domestic energy production and reduces both variable costs of electricity generation as well as the price peaks and network costs for consumers. The project also has a positive impact on other areas, for example by offering a solution to Estonia’s aggregates’ deficit by providing high-quality crystalline aggregates to the market. It provides access to the sea for the Paldiski community and contributes to the development of the local community in general,” Siitam said. He called the project as one of the cornerstones in the process of developing Paldiski into the Baltic Sea Industrial Hub.

Several deep boreholes up to depth of 750 meters and many other studies are currently being executed in Paldiski. The studies are necessary to determine the geological construction conditions, to prepare the front-end-engineering design and to assess the environmental impacts of the project implementation.

Estonia’s 500-megawatt pumped-hydro energy storage with 6GWh of storage capacity is a project of common interest (PCI) of the European Union and the first large-scale project of the European Green Deal in Estonia. The financial close of the project is foreseen in 2021.

Coverage in the local media: Delfi Ärileht, 19th of May, 2020 Paldiskisse plaanitav salvestusjaam lööb juba rekordeid ja pakub teadlastele suurt huvi.