Estonia’s energy mix is already diverse and strong. However, there are more exciting opportunities in the future, such as a nuclear power plant proposed by Fermi Energia. The company has recently outlined more details about the ambitious project, reports Ärileht.
In a letter sent to Estonia’s Ministry of Climate on March 18, Fermi Energia’s CEO, Kalev Kallemets argued that considering the current development, Estonia should make nuclear energy production a firm goal.
“Adding a nuclear power plant to the Baltic electricity market would significantly reduce the hours when fossil fuel-based production capacity determines electricity prices, thereby lowering electricity costs for the entire society,” Kallemets wrote.
Energy future in details
Fermi Energia plans to build two BWRX-300 reactors in Estonia at a total cost of approximately €3.3B. The first reactor, including owner costs, would cost €1.78B, while the second reactor would cost €1.55B. The capital cost per megawatt is estimated at €5.7M. This would be a more than competitive offering: UK’s flagship nuclear build, Hinkley Point C is expected to reach over €10M/MW and US new nuclear projects often exceed €8M/MW.
South Korean company Samsung CT, in collaboration with Canadian partners, is expected to be the main contractor for construction.
The company submitted an application for a 600 MW nuclear power plant special national plan in January 2024 for the Viru-Nigula and Lüganuse municipalities in East Estonia.
According to their estimated timeline, construction permit applications would be submitted in 2030-2031, and construction would take place during 2032-2034. Testing and startup activities would occur in 2035, and electricity production would begin at the end of 2035. The second reactor would be added by mid-2037.
Fermi Energia plans to divide nuclear electricity production into three equal parts. One-third would be sold through long-term contracts to industrial and public sector customers, another third would be sold to electricity retailers offering fixed-price packages to end consumers, and the final third would be sold directly to the electricity market with a state price guarantee.
According to the company, the full price of nuclear electricity, including capital costs, could be kept between €64-93 per megawatt-hour, depending on financing conditions. “The strength of nuclear energy is the longevity of the plant, and after servicing loans, the full cost for 40+ years will be the production cost of €25-35/MWh, plus return on equity,” Kallemets writes.
To future-proof its plans, Fermi Energia is seeking several support mechanisms similar to those implemented in other European countries. When it comes to FDI, Estonia is now supporting large-scale investment projects with a new support measure, unveiled in March 2024.
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