(MENAFN) Estonia’s largest pulp mill, Estonian Cell, has ceased operations due to soaring electricity prices following the country’s disconnection from the Russian-Belarusian energy network (BRELL) and integration into the EU power grid. BRELL, which connected Estonia, Latvia, Lithuania, Belarus, and Russia since the Soviet era, was severed earlier this month, causing a sharp increase in electricity prices in the Baltic states. Prices nearly doubled, with daily rates rising from €126 to €230 per megawatt-hour, and peak hours seeing a spike to €483 per MWh.

This drastic price increase forced Estonian Cell to halt production, with CFO Meelis Kuzma stating that the mill now waits for daily price fluctuations to determine when to restart operations. The power surge was attributed to factors such as reduced wind energy production, increased consumption from colder weather, and higher gas prices, but the timing of the hike coincided with Estonia’s disconnection from the Russian grid.

Estonian Cell has faced financial difficulties due to energy price volatility in recent years, suspending operations multiple times. The Baltic countries now purchase power independently and will require additional capacity by 2025 as energy demand rises. While most households pay fixed tariffs, businesses like Estonian Cell are heavily impacted by these market fluctuations.

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