We advised Energiasalv, the developer of Estonia’s first large-scale energy storage system, in relation to the framework for facilitating sustainable investment in the European Union (the so-called EU Taxonomy Regulation).
An important part of the green revolution
The 500MW hydro-accumulation pump (water storage) to be built in Paldiski is a solution that would allow Estonia to switch almost entirely to independent renewable energy and ensure a lower electricity price for consumers in the future. During the 12-hour nominal working cycle, Energiasalv provides six million kWh of previously stored electricity to the grid, which is somewhat more than the total average daily electricity consumption of all Estonian households.
Energiasalv is one of eight storage projects that are among the European Union’s projects of common interest, and research into this energy store is co-funded by the European Commission to an extent of 50%.
Increased transparency
The Taxonomy Regulation sets out a common framework of criteria and limits to determine whether activities can be considered environmentally sustainable or in line with taxonomy in areas such as climate change mitigation, adaptation, the circular economy, pollution prevention and biodiversity.
Compliance with taxonomy facilitates investment engagement for the client, creating transparency and clarity on environmental issues for investors. Water storage has a critical role to play in enabling renewable energy-generating installations, such as wind farms and solar farms, to enter the market, as storage is necessary when there is too much production. In this way it helps to balance the electricity system.
Our services and client team
We prepared an overview of the criteria for the client’s energy project (hydro-accumulation pump), in which, meeting the criteria, the project complies with the requirements of the Taxonomy Regulation, i.e. it is environmentally friendly. As the next step, the client must essentially assess whether the project meets the criteria.
The client was advised by counsel and head of the Energy & Infrastructure sector Kaspar Endrikson, senior associate Britta Retel and associate Elina Mizerova.
