The cable, Estlink 3, may be completed by 2035 and would cost over a billion euros. However, if the analysis shows the cable is not economically viable, it will not be built.

The Estlink 3 environmental impact assessment outlines "the area of influence of the subsea cable and the requirements for the environmental impact assessment." The program is open for suggestions for three weeks and will be publicly discussed on April 23 in Lääne-Nigula municipality — the potential landfall site.

"This is the starting shot for the impact assessment," Priit Heinla, head of offshore grid development at Elering, told "Aktuaalne kaamera."

"The impacts will be assessed across the entire infrastructure with Finland. It will take a couple of years and involves environmental studies related to birds and fish," he added.

According to plans, the 700-megawatt Estlink 3 will come ashore on the Estonian side of the Gulf of Finland near Aulepa, Lääne-Nigula municipality, while the Finnish terminal will be at Inkoo. In addition to the 120-kilometer subsea cable, substations need to be built on both sides, and power grids reinforced. The extensive project requires a significant investment.

The current security situation means these considerations are vital; for example, the cable could be buried a few meters under the seabed.

As for cost, Heinla said: "The total cost of the project is about €1.1 billion, considering both Estonia and Finland. Estonia's share would be slightly more than half — about 600 [million euros]. Estonia's connection capacity with Finland would then be 1700 megawatts, matching Estonia's peak winter consumption."

The new cable would significantly reduce the price gap between Estonia and Finland.

The project will be 50 percent financed by EU funds, while Estonia will cover its remaining share using congestion revenue from interconnectors. The cable is expected to lower the final electricity price for consumers.

Karin Maria Lehtmets, head of energy markets at the Ministry of Climate, said the decision to invest will only be made if it benefits consumers.

She said: "A thorough socio-economic analysis will determine the price reduction versus cost. There is no investment decision yet, but it will be based on this analysis. If it doesn't benefit our consumers, it won't be done. It will only proceed if it is profitable."

The socio-economic analysis is being prepared by Elering and Fingrid and will be reviewed by the Competition Authority (Konkurentsiamet).

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