Over the last years, Estonia has taken many steps to expand its energy independence. The country has seen massive investments in solar, wind, geothermal sources, as well as storage facilities and a successful push to fully decouple the regional grid. Now, one more piece of this puzzle is coming together: a new nuclear energy and safety bill that establishes the regulatory foundation for potential nuclear power development.
Last week, Estonia’s Ministry of Climate published a draft legislation that creates a comprehensive legal framework covering the entire nuclear fuel cycle, from uranium mining and plant operation to final waste disposal, while addressing safety, security, radiation protection, and environmental concerns.
“Nuclear energy is clean, reliable, and competitively priced,” said Minister of Energy and Environment Andres Sutt while introducing the draft. “As a reminder, we still import about a third of our electricity, and we definitely need more domestic electricity generation.”
The bill doesn’t mandate building a nuclear plant but creates the regulatory structure should Estonia decide to proceed. Sutt noted that Estonia could eventually host small modular reactors (SMRs), such as those planned by Fermi Energia, a technology already being implemented in countries like Canada.
Oversight would fall to the Consumer Protection and Technical Regulatory Authority (TTJA), operating as an independent regulator with a phased licensing process: preliminary assessment, construction permit, and operating license.
Economic impact
The legislation incorporates the “polluter pays” principle, requiring operators to fund decommissioning costs expected to exceed €1B by a plant’s end of life. Operators must also provide financial guarantees and liability insurance.
Local communities would benefit directly: host municipalities could receive €0.30 per megawatt-hour fed into the grid, with 50% distributed to residents living near the plant or within the emergency planning zone.
The Ministry of Climate projects that, once operational (estimated in the eleventh year), state revenues would exceed expenditures by at least €19 million annually. Tax revenues from construction activity would begin flowing into the state budget from year six, with revenues exceeding costs already during the construction phase.
The bill is expected to reach the government in March 2026, prior to parliamentary debate, with the law planned to take effect in January 2027. Simultaneously, the government is advancing a national spatial plan for the nuclear facility, launched in April, with a potential location to be determined by 2027.
Establishing national regulatory capacity, including approximately 80 regulatory positions, training, and IT systems, is estimated at €73M, primarily funded through permit and oversight fees paid by developers. An even bigger upside is expected from business activity that will be powered by access to a stable and affordable source of energy.
