NARVA, Estonia (May 22, 2025) — Estonia took its first formal step toward nuclear energy on Thursday as the government approved a national designated spatial plan and environmental assessment for a potential 600-megawatt nuclear power plant — a move officials say prepares the country without committing it to building.
Economy and Industry Minister Erkki Keldo, speaking at Narva Estonian Upper Secondary School, said the spatial planning process would define whether, where, and under what conditions Estonia could host its first nuclear facility.
“The initiation of a designated national spatial plan does not mean that the construction of a nuclear power plant will start immediately,” Keldo said. “We are making the necessary preparations so that if an investor wishes to build a plant and we decide to proceed, the state will already have a thoroughly considered and assessed plan in place.”
The planning area spans approximately 1,285 square kilometers across Lääne-Viru and Ida-Viru counties and includes sea territory from Kunda Bay to Narva Bay. The designated zone covers land in Viru-Nigula, Haljala, Rakvere, Vinni, Toila, Lüganuse, and Kohtla-Järve, as well as the city of Rakvere.
Keldo said the government aims to evaluate the social, environmental, and economic impacts of such a facility — and to ensure the process involves residents, municipalities, and stakeholders.
“We will assess all relevant impacts: how the plant would affect the people in the planning area, their homes and living environment, and what the impacts of the plant on the natural environment and the economy would be,” he said.
The proposal follows an application submitted in January by private energy firm Fermi Energia, which has been promoting the development of small modular reactors (SMRs) in Estonia. If approved and built, the first of two reactors could begin operations as early as 2035.
The national planning process will consider multiple candidate locations within the study area but will ultimately focus on a single site for any formal proposal.
According to government documents, a national working group on nuclear energy — composed of representatives from 11 ministries and agencies — previously identified 15 suitable areas after applying more than 60 technical and environmental criteria recommended by the International Atomic Energy Agency. A separate socio-economic analysis pointed to Toila, Kunda, Loksa, and Varbla as areas with the strongest regional benefits.
The working group is also charged with reviewing nuclear safety, reactor technologies, waste management strategies, and legal frameworks. A final recommendation to the government is to be based on IAEA standards and include cost assessments, administrative responsibilities, and long-term environmental considerations.
If a nuclear plant is eventually approved, Keldo said, it could bring long-term benefits to the region, including “new high-wage jobs” and a boost to the local economy.
The spatial planning effort is expected to run in parallel with legal reforms that will define the conditions for nuclear energy deployment in Estonia, including the classification of installations and waste disposal.
The decision to proceed with construction will ultimately depend on the outcome of the plan, the environmental impact assessment, and political and financial support.