Estonia is prioritizing accessible, green power to reduce its dependence on fossil fuels, attract foreign direct investment (FDI), and achieve net-zero emissions. The country is now actively exploring nuclear power, focusing on small modular reactors (SMRs) that align with Estonia’s energy needs and infrastructure.
Currently, the Estonian parliament (Riigikogu) is considering a draft resolution that would authorize nuclear power development. This draft follows a 2021-2023 study by the Nuclear Energy Working Group, which found nuclear energy feasible for Estonia. Most Estonians support deploying nuclear energy, further bolstering the initiative.
🔋🇪🇪 #Estonia is considering small modular reactors (#SMRs) to cut reliance on fossil fuels and reach net-zero emissions. Most Estonians are on board with this plan, and @fermienergia is aiming to build Estonia's first SMR by 2035, says @kallemets. https://t.co/yHSaq1MZZJ
— Invest in Estonia (@EstoniaInvest) August 5, 2024
This initiative reflects a broader global trend towards adopting SMRs as a key component of future low-carbon energy strategies.
What are Small Modular Reactors (SMRs)?
Definition and Design
Small Modular Reactors (SMRs) are advanced nuclear fission reactors that produce up to 300 megawatts electric (MWe) per unit, about one-third the capacity of traditional nuclear reactors. These reactors are “small” due to their reduced physical size and power output, and “modular” because their components can be factory-fabricated and transported to installation sites, making them easier and quicker to construct compared to traditional reactors.
Types and Technology
SMRs include various designs such as light water reactors, high-temperature gas-cooled reactors, and liquid metal-cooled reactors. Each design leverages different cooling technologies and reactor principles to optimize efficiency and safety. For instance, light water reactors use ordinary water as a coolant and neutron moderator, while high-temperature gas-cooled reactors use gases like helium.
Advantages of SMRs
- Enhanced Safety: SMRs typically incorporate passive safety features that rely on natural phenomena like gravity and natural circulation, reducing the need for active intervention during emergency situations. This design minimizes the risk of human error and mechanical failures.
- Flexibility and Scalability: Their modular nature allows SMRs to be produced in series and transported to sites, enabling scalable and incremental energy production. This flexibility makes them suitable for remote areas and locations with limited infrastructure.
- Cost-Effectiveness: Factory fabrication and reduced on-site construction time lower the overall capital investment. This aspect, combined with shorter construction periods, makes SMRs financially attractive.
- Support for Renewable Energy Integration: SMRs can provide stable and reliable power, complementing intermittent renewable energy sources like wind and solar, and helping to stabilize the electric grid.
Global Adoption and Estonia’s Initiative
Countries like the U.S., UK and Canada are actively developing and deploying SMRs. Estonia, through Fermi Energia, aims to build its first SMR by 2035 to reduce reliance on fossil fuels and achieve net-zero emissions.
Fermi Energia aims to bring Estonia’s first SMR online by 2035. Kalev Kallemets, chairman of the company’s management board, detailed this long-prepared project in the latest issue of Life in Estonia magazine.
Estonia needs to achieve several long-term goals simultaneously:
- Energy Security: Long heating seasons necessitate a reliable energy supply.
- Carbon Neutrality: Achieving carbon neutrality across all weather conditions.
- Industrial Development: Meeting the EU and Estonian 2050 carbon neutrality target requires increased green energy consumption.
- Price Stability: Ensuring stable energy prices, which nuclear power has achieved in countries like Canada, Finland, and Sweden.
When could the plant be ready?
Plans include submitting an application for a national special planning scheme after a parliamentary decision this year. The first phase will take three years, the second two years, and upon site determination, an application for a construction permit will be prepared. With a reference plant in Canada expected by 2028, construction could commence with the first reactor generating electricity by 2035 and the second shortly thereafter.
What happens after the parliamentary decision?
Next steps involve identifying the best location for the nuclear plant in Virumaa, which has a robust electricity network and industrial history. Legislation development and human resources preparation are crucial. Initial costs for these steps will total a few million euros, escalating during the building permit procedure.
Economic and Employment Impact
How many people would the nuclear power plant employ?
The construction phase will employ many workers. Fermi Energia has engaged over 30 Estonian construction, design, and engineering companies and plans to continue. The organization will grow to over a hundred people by the construction phase, with each reactor operated by around a hundred staff members. The plant’s employees must be Estonian citizens who have passed security clearance, ensuring high trust and safety standards.
How much could the nuclear plant cost?
To date, €7 million has been spent, with an additional €30–40 million expected for development. The estimated construction cost is around €3 billion, aiming for an electricity production cost of €75 per megawatt hour. Private investors, including 1200 Estonians through Funderbeam, have funded the project so far, with foreign capital likely to increase as the project progresses.
Safety and Environmental Considerations
What about the safety of nuclear plants post-Chernobyl and Fukushima?
Nuclear power plants in the European Union operate safely and with low environmental impact, including those near Antwerp, Zurich, and Stockholm. Good regulation, technology, and operation make nuclear technology safer than wind power. The EU classifies it within sustainable financing, provided technical requirements are met.
Future of Estonia’s Energy Sector
Imagining the future Estonian energy sector
Estonia’s energy future should be diverse and environmentally low-impact, given the high cost of future carbon emissions in the EU. Fossil fuels like oil shale and natural gas are unsustainable. Renewables and storage technologies will play vital roles. Nuclear energy will provide long-term price security, expected to comprise 15–20% of the Baltics’ energy mix, ensuring supply security alongside Latvia and Lithuania.