We advised Energiasalv on acquiring EUR 11 million in additional financing for its EU Project of Common Interest (PCI project), the “Zero Terrain Paldiski” Pumped Hydro Energy Storage (PHS) plant in Estonia.
Strengthening the financial position
The funding includes strategic investments from Alexela, Sunly, Combiwood Grupp, Warmeston, and Kiikri Kodu.
The financing aims to expedite the investment readiness process to achieve full readiness by the summer of 2024 and commence construction in the autumn of 2024. Zero Terrain Paldiski 500MW 6GWh PHS construction costs are about EUR 800 million. The capital raise follows the official permit granted to Zero Terrain Paldiski PHS in December 2022, highlighting the substantial investment in the country’s energy infrastructure.
Vital part of the national energy system
Energiasalv utilises its innovative Zero Terrain technology for the project, enabling the implementation of pumped hydro storage projects in flat regions without mountains or large rivers, thereby setting a new standard for efficient and sustainable energy storage through the utilisation of favourable geology and surface water bodies as upper reservoirs.
When renewable energy is produced more than is consumed, Energiasalv stores renewable energy by pumping water from underground reservoirs into Paldiski Bay. If there is less wind and solar energy than consumers would need, Energiasalv provides electricity to the power grid by releasing water from Paldiski Bay back into underground reservoirs. During the nominal operating cycle of 12 hours, Energiasalv provides 6 million kWh of previously stored electricity to the grid, which is somewhat more than the average daily electricity consumption of all Estonian households.
Energiasalv’s Paldiski PHS plant is vital in helping the Estonian energy system manage the unpredictable fluctuations of renewable energy. Enhancing supply reliability and energy security ensures a stable and reliable electricity supply.
Our services and client team
We advised Energiasalv on all legal aspects related to securing the investment.
Our client team was led by senior associate Mirell Prosa and also included partners Toomas Prangli and Paul Künnap, counsels Kaspar Endrikson, Hetti Lump and Pirkko-Liis Harkmaa, senior associates Britta Retel, Sandra Mikli and Olivia Kranich as well as associates Kadri Puu, Elina Mizerova, Lee Laanemäe and Kevin Piho.
