The damage to the EstLink 2 electricity cable connection could lead to price increases, which the government plans to partly mitigate. For private consumers, possible options may include a reduction in network tariffs or a change to the electricity tax.

"Eesti Energia's forecast is that during this period, the possible fluctuation in energy prices could be 1.4 cents per kilowatt-hour (kWh). This is a rough estimate because it depends on numerous factors: whether the weather is warmer or colder. If it is very cold in Finland, for example, Finland would need our energy, but it will not be able to get it. This again would make the price cheaper here," explained Estonian Prime Minister Kristen Michal (Reform).

Although security of supply is already guaranteed, the longer-term plan is to build additional reserve capacity. Shale plants, which could be commissioned now if required, would be the most expensive option. One solution could be to bring the Kiisa gas power plant onto the market earlier. For instance. However, the government will reassess the need for that in March, once the planned desynchronization from the Russian electricity grid has happened.

"Future reserves will probably be from gas power plants, Elering has a tender for that. And we are also discussing an additional contribution for Eesti Energia to build a new power station in Narva," Michal said.

On Thursday, the government discussed a potential contribution of €100 million for the Narva gas plant.

"This extra money would definitely speed up the project. If we can now get our projects up and running faster with this new injection of capital, get the tenders done, and get the order out, then it's possible that this plant will be up and running in 2028. And once it has received all the grid-testing permits, it will also be able to supply electricity to the grid," said Lauri Karp, head of Enefit Power.

"This project consists of several phases. First is placing orders for either the turbine or the engine. Second is the environmental impact assessments, and all the planning processes that are outside of our control. So not everything can be influenced with our capital in Estonia," he added.

The government is also considering differentiating the renewable energy tax for businesses.

"For the major consumers in Estonia, which are industrial companies, the price of electricity – not this market price, but all the additional charges, are quite high in Estonia, including the renewable energy charge. Eesti 200's position is that we should review these charges in order to improve the competitiveness of the economy," said Minister of Education and Research and Eesti 200 chair Kristina Kallas.

"We need to differentiate them. In other words, these fees should be differentiated according to the type of electricity consumer – if they are strategically important industrial companies for Estonia, or if they are companies that have improved their electricity consumption and made it more efficient," Kallas added.

Discussions are set to continue among the government next week.

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