The building of the power station has been built according to the design of architect Vladovski. The construction work was started at the end of September 1922 and in May 1923 the station produced energy for starting machinery of peat industry. The boilers of the station were heated with local fuel peat. In the post-war period (1944–1950) Ellamaa power station had an important role in providing Estonia with electricity. The station terminated its activities on 1 May 1966.
Today there is a boiler house in the previous power station building, which provides Turba small town with heat.
Since 15 August 2001 Ellamaa power station has been declared an architectural monument in accordance with a regulation of the Minister of Culture.