Brand story · 2026
A powerful underground billion-euro project that every sustainable company would want to invest in
English translation of the original Estonian article. Original headline: Võimas maa-alune miljardiprojekt, millesse iga jätkusuutlik ettevõte ka ise investeerida tahaks
The trilemma well known among energy experts is how to ensure environmental sustainability, security of supply and affordable prices all at once. Energiasalv Pakri, fully focused on sustainability, offers an effective and proven long-term solution to this problem.
When the wind blows hard and the sun shines brightly, Estonia's electricity production exceeds our actual consumption many times over. This energy is sold to our neighbours for next to nothing, because we lack storage capacity in our country. A few hours later, when the wind dies down and the sun sets, the same energy is bought back from abroad at a high, sometimes outrageous price. One can't help asking: where is the logic?
The use of fossil fuels must start to recede, and since neither the sun nor the wind can be switched on at the press of a button, storing renewable energy is critically important. At government level, it is necessary to look consciously to the future. The country's energy production must be stable, sustainable and optimally priced.
A solution exists – the 500 MW pumped-hydro storage in Paldiski
Everyone agrees that energy security is very important. Achieving it, however, requires important decisions and considered steps from the people who lead the country. The storage capacity problem of Estonia, and partly of the Baltic Sea region, would be solved by the Energiasalv Pakri 500 MW / 15 GWh pumped-hydro storage planned for West Harju County. It is a large-scale underground project that could become the foundation of our country's energy security.
An extensive benefit analysis commissioned from the international audit firm KPMG confirms that this is a plan whose social, economic and environmental impact would contribute very powerfully and positively to the entire region.
The Energiasalv project offers security of supply.
To meet the elements of responsibility and sustainability, Energiasalv doesn't need to search for artificial compliance anywhere – they are the foundation of the technology and operation of the solution it offers.
Large hydroelectric power plants and pumped-hydro storage are usually associated with mountainous areas, where natural differences in height are used. Unfortunately, flat Estonia has no mountains, and the small hydroelectric plant at Linnamäe does not play a large role in national energy production.
Energiasalv helps solve this problem typical of flat land: the plant will be built underground, where the "upper reservoir" is the Baltic Sea and the lower reservoirs are caverns to be excavated at a depth of 590–750 metres. Energiasalv's pumped-hydro storage is the most advanced and most affordable long-term storage technology.
An environmental impact assessment has already been carried out for the project. The KPMG report highlights a large positive impact. Energiasalv, for example, would prevent up to 584 thousand tonnes of CO₂ emissions a year, which is as much as 4.1% of Estonia's total annual greenhouse gas emissions.
The environmental gain also lies in the circular economy and adding value to the subsoil. In building the underground reservoirs, a huge amount of gneiss rock – a strong, granite-like material – is brought up from the depths. Estonia currently imports some of its crushed granite for road construction at a high price, while local limestone quarries arouse strong opposition among residents and leave behind a bleak landscape.
Gneiss, however, is mined deep underground, leaving the surface untouched. According to TalTech experts, using this domestic material would make it possible to reduce granite imports by 861 thousand tonnes a year, saving the state 12 million euros over the same period.
In addition, using crushed gneiss in infrastructure construction extends the life of roads and saves the state as much as 1 billion euros on road repairs over the operating period. By preventing the opening of 247 hectares of new limestone quarries on the surface, nature and local communities are spared.
Thousands of jobs for the community and big benefits for electricity consumers
Energiasalv Pakri has also managed to build good relations with the community and plans to contribute to local wellbeing. Under a memorandum of understanding signed with Lääne-Harju municipality, a modern small harbour will be built in Paldiski, giving small vessels long-awaited convenient access to the sea.
The local community will see social and economic benefits for many years; the entire operating period is calculated at 80 years. The national resource fee will flow into the municipal budget, allowing it to be used to improve local life. During the construction period of about ten years, the project will contribute significantly to employment: according to KPMG's benefit analysis, Energiasalv's construction, the extraction of gneiss and adding value to it will support an average of 1,342 jobs every year.
Energiasalv's social impact reaches beyond Paldiski – straight into the wallet of every electricity consumer in Estonia. According to KPMG's analysis, over its operating period the pumped-hydro storage would bring Estonian consumers savings totalling 6.5 billion euros. In essence, Energiasalv helps ensure a more stable electricity price, among other things by evening out peak prices.
Energy security and frequency control
On a broader level, Energiasalv directly concerns regional energy security. After Estonia and the Baltic states disconnected from the Russian frequency grid, maintaining frequency and ensuring security of supply became a vital issue. There is no point in relying on ageing oil shale units or importing energy at an exorbitant price in a crisis.
Energiasalv offers the region 500 MW of dispatchable capacity and 1.2 TWh of time-shifted renewable energy a year, covering about 10% of Estonia's annual electricity consumption. It is a project of such strategic importance that it has been granted European Union PCI (Project of Common Interest) status. The entire undertaking also contributes directly to the energy security of neighbouring countries and the whole region, reducing electricity imports and saving 183 million euros a year through lower imports.
The message of the company's new CEO, Andres Veske, is clear: "We have the land, the partial building permit needed to start construction and international recognition. Over its operating period, the project can bring as much as 12.6 billion euros of added value to the Estonian economy and 4 billion euros of tax revenue to the state. The Rohetiiger roadmap and expert round tables give a clear message that such storage is (urgently) needed for the transition to renewable energy."
The project is currently in the phase of seeking private financing and a state support model. Hundreds of millions in support could be drawn from Europe and even larger investments from funds, but this requires the Estonian state to show the courage to make positive decisions. "Whether through a stake or another form of investment security. Involving the state gives foreign investors a clear signal that the government takes its energy security completely seriously," adds Veske.
What other options are there?
According to forecasts, Estonia's electricity consumption will rise noticeably by 2035 compared with today, as the transport and heating sectors are electrifying rapidly. Viewed through the three elements of sustainability, Energiasalv Pakri proves that this billion-euro project simultaneously solves a number of environmental issues, revitalises the local community and saves consumers money, ensuring our national energy security and price stability. It is time to make the decisions that guarantee an even better future for our country.