Energy company Zero Terrain has signed a memorandum of understanding (MoU) with the Estonian Ministry of Climate to construct a pumped-hydro energy storage (PHS) project in Estonia.
The MoU is aimed at helping the country achieve its 100% renewable energy goal by 2030. Under the deal, Zero Terrain will work closely with the government to develop and implement solutions for the realization of the PHS project, including addressing market challenges and supporting securing capital.
Zero Terrain is jointly owned by the Estonian energy company Alexela, Baltic-Polish renewable energy company Sunly, EV charging startup Vool, woodworking businesses network Combiwood Grupp, wood pellet manufacturer Warmeston, and Estonian firm Ronnivara.
“Signing the MoU is a significant step forward in Zero Terrain's journey towards a clean and secure energy future,” said Peep Siitam, the Founder and CEO of Zero Terrain. “We believe there can’t be a renewable energy-driven energy system without large-scale, long-duration energy storage. This collaboration signifies the cooperation and a commitment to driving positive change in the Estonian renewable energy landscape.”
As part of the collaboration, Zero Terrain has received a grant of €1.98 million (about $2.15 million US, at current exchange rates) from the state’s applied research program to assist the company’s project development efforts in Estonia and facilitate technology export initiatives.
The Zero Terrain Paldiski 500MW underground long-duration energy storage plant represents a significant advancement in conventional PHS technology, allowing for construction in various terrains, even flat lands. The Paldiski Pumped Hydro Energy Storage plant is an EU Project of Common Interest (PCI). It is the only greenfield PHS project in the Northern Baltic region and is set to become the largest facility in Estonia.
Construction of the Zero Terrain Paldiski project is scheduled to commence in 2025, following the acquisition of main building permits in December 2022. Once operational, the plant is projected to generate 6GWh of power to the grid during its nominal operating cycle of 12 hours, surpassing the average daily consumption of all Estonian households.
“The global need for long-duration energy storage (LDES) capacity is undeniable. 85–120 TWh of LDES is needed globally by 2040 (McKinsey, 2021), so the interest in our technology and project is high, especially in regions where the traditional PHS was impossible to implement due to geographical limitation,” added Siitam.
