The first part of the study aims to assess the impact of the Paldiski pumped hydro energy storage facility on Estonia's electricity prices compared to battery storage. To achieve this, the electricity market will be modeled using three different scenarios, covering the unified European electricity market.

The scenarios will be developed for three calendar years: 2030, 2035 and 2040.

The second part of the procurement involves modeling the electricity price for large consumers/industry by component — renewable energy fees, network charges, taxes and excise duties — for the years 2025, 2030 and 2035 in neighboring countries, namely Latvia, Lithuania, Poland, Finland and Sweden.

The study must differentiate large consumers based on voltage levels at which they are connected to the grid. The electricity price forecast must be broken down by components, including renewable energy fees, network charges, taxes and excise duties.

"The broader goal of the study is to assess the impact of different storage methods and capacities on electricity prices to accelerate the adoption of renewable energy. Storage significantly supports the integration of renewable energy," wrote Rein Vaks, head of the energy department at the Ministry of Climate, in the procurement document.

"Large consumers also play a significant role in renewable energy use. The goal of the study is to assess the impact of a 500 MW pumped hydro storage facility — with a capacity of 6,000 MWh and a 12-hour storage duration — on Estonia's electricity prices compared to battery storage. To do this, three electricity market scenarios will be modeled. The modeling must encompass the unified European electricity market," Vaks wrote.

The estimated cost of the procurement is up to €29,999, excluding VAT.

The pumped hydro storage facility planned in Paldiski will be capable of storing six GWh of energy over 12 hours. Its output is comparable to the average daily electricity consumption of Estonian households. As a strategic infrastructure project, the development of Energiasalv has been supported by the European Union's Connecting Europe Facility.

The investors in Energiasalv include AS Alexela, Sunly AS and Vool OÜ.

The developer, OÜ Energiasalv, expects the Paldiski pumped hydro storage facility, which aims to reduce electricity price fluctuations, to be completed by 2031. A smaller-scale storage capacity could be operational as early as two years prior.

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