Energiasalv Secures €11m Additional funding for its Energy Storage Project
Energiasalv has acquired another 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. The funding includes strategic investments from Alexela, Sunly, Combiwood Group, Warmeston, and Kiikri Kodu, further strengthening the project’s financial position.
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.
This additional 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.
Peep Siitam, Founder and CEO of Energiasalv, stated, “Reaching net zero power system isn’t possible without long-duration energy storage. Zero Terrain Paldiski 500MW 6GWh PHS will provide customers clean, secure, and affordable power when no wind or solar energy is available.“
The global electricity sector faces the challenge of integrating intermittent renewable generation while ensuring electricity supply reliability, security, and affordability. Energiasalv’s PHS plant in Paldiski, positioned as a pioneering solution in response to this challenge, will also be the country’s largest pumped hydro energy storage facility.
“For large energy storage projects like Zero Terrain Paldiski PHS, the governments must have the appropriate market and regulatory arrangements to support the industry’s development as a matter of urgency. These projects will come only with a supportive policy environment,” Siitam explained.
“These are revolutionary times in the energy sector, and in such extraordinary times, we must adopt innovative methods,” stated Marti Hääl, Chairman of Alexela’s board. “To secure energy supply amidst the green revolution and the backdrop of the ongoing conflict in Ukraine, Estonia must embark on an ambitious energy revolution.”
Hääl emphasised that Estonia’s national goal is to achieve a 100% share of renewable energy in its energy mix by 2030. Based on various studies, the country needs to develop at least 2,000 MW of wind farms, 1,300 MW of solar farms, and 2,000 MW of storage and managed capacity to achieve this. “Such a large-scale transformation requires substantial cooperation between the state and the private sector to ensure its success,” Hääl explained.
According to Priit Lepasepp, Chairman of Sunly’s board, every energy production company will also need to be a storage company in the future. “At Sunly, we are already making investments in this direction today because we recognise that energy storage is essential for driving the necessary changes in the energy system,” stated Lepasepp.
According to Toomas Mets, Chairman of Combiwood Grupp, integrating wind and solar electricity will inevitably create a demand for storage capacity. “The water storage device developed by Energiasalv generates and stores energy using an innovative approach that allows for its placement outside the typical geographical conditions, such as mountains or large rivers. Additionally, this device enables the substitution of precious metals on a large scale, which would have been necessary for constructing a similar-capacity battery-based storage system. I firmly believe that this project is of significant importance for Estonia, but its potential extends far beyond the borders of our country,” stated Mets.
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.
The construction of Energiasalv’s Paldiski PHS plant is scheduled to commence in the summer of 2024, with the storage facility expected to become operational by 2029.