In Estonia, the largest pulp mill Estonian Cell has halted its operations due to a sharp rise in electricity prices, which is linked to the country’s exit from the unified energy system of BRELL (Belarus – Russia – Estonia – Latvia – Lithuania).
The mill, which is the biggest consumer of electricity in the country, uses about 25 MW. At the beginning of 2025, electricity prices in Estonia reached a record high of €184 per megawatt-hour, which is 2.5 times higher than in January 2024 (€75.5).
The management of Estonian Cell stated that the price situation makes production economically unfeasible. According to the company’s financial director, Meelise Kuzma, energy prices are influenced by weather conditions, which adds instability to the business.
On February 14, it was reported that after the exit of Estonia, Latvia, and Lithuania from BRELL, electricity prices in these countries increased by 50%.
On February 9, Lithuania, Latvia, and Estonia officially joined the European power grid, leaving the BRELL system, from which the countries had agreed to exit in 2023. Russia, however, stated that this move would not affect the operation of energy systems.