On 20 March 2026, the Viru-Nigula Municipal Council voted by 15 votes in favour, with one abstention, to approve the sale of the 95-hectare Madala plot owned by the municipality to Fermi Energia AS. The decision creates the conditions for a potential 600 MWe nuclear power plant in Kunda, subject to the site being officially confirmed through the national designated spatial planning process.
The political decision will be formalised in the coming weeks through a notarised contract under the Law of Obligations Act. Under the agreement, Fermi Energia will pay an annual booking fee of EUR 20,000 to EUR 50,000 during the national planning process. Once the Government officially confirms Madala as the selected site — currently expected in 2029 — Fermi Energia will have the sole right to acquire the land at a price determined by independent assessors. The valuation will exclude any increase in value resulting from the planning work financed by Fermi Energia.
The agreement also formalises Fermi Energia’s commitment to invest at least EUR 15 million in Viru-Nigula during the 2030–2037 construction period: EUR 5 million into new residential development, EUR 5 million into improvements to the local living environment, and EUR 5 million into a nuclear energy visitor centre.
In addition, the agreement includes restrictions on forest management on the Madala property in order to preserve a natural sound barrier protecting a sea eagle nest located on a neighbouring property.
The council decision follows eight months of discussions and four separate council decisions, partly influenced by the changes in council composition after the October 2025 municipal elections. It reflects a high degree of political and public support in Viru-Nigula municipality for the development of a 600 MWe nuclear power plant in Kunda.
Fermi Energia believes the decision will also support the ongoing parliamentary consideration of the Nuclear Energy and Safety Act, which is hoped to be adopted by June 2026.
A recent site pre-feasibility study carried out by engineering bureau Norte with financing from Korea’s KIND, together with a cooling water study by Sweco, has further confirmed to Fermi Energia that the Madala site is the most suitable location for nuclear power plant construction. The company now looks forward to official confirmation through the national planning process by the end of 2026.
The plot of land is located northeast of Kunda, near Kunda Harbour. On the western edge of the area marked in blue on the map.