News

Five out of the eight biggest wind energy developers in Latvia – European Energy A/S, Eolus SIA , EWE Neue Energien SIA, Enery SIA and Latvenergo AS – have decided to withdraw from the Latvian Wind Energy Association (WEA) to form a new and effective industry representation. The companies have decided to leave the WEA after long-standing efforts to change the WEA’s undemocratic and non-transparent governance, which is incompatible with the responsibility of international investors and Latvia’s leading renewable energy (RES) developers towards their investors and the ESG (Environment, Social, and Governance) standards that form the basis of their operations.

Respecting the history of the Latvian Wind Energy Association and its other members, the companies have repeatedly approached the association’s governing bodies to improve the association’s governance model, involving members in its management and reducing the disproportionate influence of individual industry players on wind industry development issues as a whole. At present, the Wind Energy Association is dominated and represented by a Council which elects and dismisses itself and can block any proposals put forward by members in a democratic process or the admission of new members. Thus, the individual entrepreneurs who serve on the Association’s Council have ensured that only their own interests are represented, acting as if on behalf of the whole industry.

We, as members of the Wind Energy Association, have for years been urging the governing bodies of the Association to change and to make the work of the Association more democratic, involving its members more, so that the level of technical, marketing and regulatory competence of the Association itself is increased, and it is also able to attract additional members who are currently waiting to make their membership decision, seeing the governance processes within the organisation itself.

Since the General Meeting of the Association on 6 December, we have lost faith in the ability of the Association to change. The current governance model of the Association is incompatible with our understanding of good governance, and we have therefore decided to withdraw from the Association on 16 December this year.

Member of the Board of Eolus SIA, Inga Āboliņa: “Eolus SIA has always stressed the importance of the company’s membership in the Association to jointly represent the interests of the industry, share best practices and knowledge, and build a sustainable and greener energy future. However, in reality, we have seen challenges with the governance principles of the Wind Energy Association. The Association’s Council approves itself, and has extensive veto power and considerable influence on the Association’s opinion-forming and policy proposals, many times without consulting or even informing the members, including us. Such a governance approach is contrary to Eolus SIA's values of transparency, respectful cooperation and equal involvement of all members in the decision-making process.”

Chief Development Officer of Latvenergo AS, Ilvija Boreiko: “The Wind Energy Association, which initially united a few Latvian and foreign capital companies, has apparently expanded as other traders have come to rely on the WEA as a representative of the interests of the whole industry. However, the WEA has pursued a mercantilist and narrow representation of the interests of a small group of traders, both in state institutions and in the media. For our part, we have called on the WEA not to take a one-sided view on important issues of the Association, to take into account the initiatives of all members, and not to put obstacles in the way of the admission of new members to the organisation. To remove obstacles to the comprehensive representation of the interests of the industry and to significantly accelerate the development of renewable energy in Latvia, we call for a new, democratic wind and renewable energy development organisation.”

Executive Director of EWE Neue Energien SIA, Artūrs Toms Plešs: “The energy industry is facing major changes. In the coming years, Latvia will see a major breakthrough in the development and construction of wind parks. This requires the industry to work together, with a shared vision, to help Latvia achieve energy independence and security. The work of the association must, therefore, also become more structured, more democratic and have clear governance principles. Unfortunately, efforts to make the Association more open and transparent have not been heard by the Association’s Council. Representing an international company based on clear and transparent governance principles, we see that our membership in the Association is in direct conflict with these values. We have therefore decided to withdraw from the Wind Energy Association.”

“We support Latvia’s climate and energy policy objectives, but we call for no undemocratic and non-transparent decision-making and for confidence in Latvia’s legal principles,” say the wind industry developers.

Further information and comments are available by contacting the representatives of the companies.

Artūrs Toms Plešs, EWE Neue Energien SIA
Alnis Bāliņš, European Energy Latvia SIA
Ilvija Boreiko, Latvenergo AS
Inga Āboliņa, Eolus SIA