Google's Finnish data centre plan could push Estonia's power costs higher

Google is investing €13 billion to build large, energy-intensive data centres in Finland, a move that will tie up about half of the Loviisa nuclear plant’s output for the next 22 years. Without additional generation capacity, analysts say Estonia could see its electricity price rise by roughly 0.5 cents per kilowatt-hour, as the country loses access to cheap surplus power from Finland. Tiit Hõbejõgi, a board member of Enefit, points to recent consumption increases in Finland and a €5/MWh price rise as contributing factors.

Timo Tatar, CEO of Ignitis Eesti, warns that while average prices may stay stable, the market could become more volatile, with periods of both high and low rates due to new demand and upcoming wind capacity. Elering’s chief Kalle Kilk argues that Estonia must take greater responsibility for its own electricity supply to safeguard security and price stability.