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Latvenergo AS has become the owner of 100% of the shares in Laflora Energy SIA with a view to building a wind power plant (WPP) with a total capacity of 108.8 MW (megawatts) at the former peat mining site of the peat producer Laflora SIA – Kaigi Bog in Līvbērze Rural Territory and starting electricity production in June 2026.

Laflora SIA, in collaboration with a Latvian wind energy company, Windy SIA, has developed the Laflora Energy SIA wind park on land owned by the company, with a planned installed capacity of 108.8 MW, consisting of 16 Nordex wind turbines. Under the management of Laflora, the construction of the WPP will be carried out by another leading national capital company, UPB Nams SIA. The provisional construction costs of the wind farm are estimated at approximately EUR 185 million. After commissioning, the wind farm is expected to generate more than 350 GWh of electricity annually, providing electricity to more than 160,000 households. The project will be a significant addition of green power to the generation portfolio of Latvenergo and a contribution to the reduction of Latvia’s electricity imports.

The acquisition of wind power plant projects ready for construction is an effective solution and a prerequisite for the rapid development of renewable electricity generation capacity with the aim of increasing the value of Latvenergo Group.

Chairman of the Management Board of Latvenergo AS Mārtiņš Čakste: “The growth strategy of Latvenergo is focused on increasing the value of the state-owned group and stimulating the growth of Latvian households and businesses. And a leading energy company can primarily achieve these goals through the ambitious expansion of its electricity generation assets.”

Uldis Ameriks, Chairman of the Management Board of Laflora SIA: “The deal with Latvenergo is an important step in the implementation of the sustainable business strategy of Laflora. Renewable energy is a key prerequisite for the development of the green industrial zone of Laflora in Kaigi Bog by setting the aim of integrating the circular economy and high value-added industries that promote green growth in the area, as well as helping the company and the country to achieve their goals on the way towards climate neutrality.”

Viktors Valainis, Minister of Economics of the Republic of Latvia: “I am pleased with this project from several points of view: firstly, a renewable power plant of this scale will have a positive or downward impact on the price of electricity; secondly, this is an excellent example of resource utilisation, as several industries form a perfect synergy; and thirdly, this WPP project is developed in a traditionally industrial and economically active location for Latvia, where quality electricity supply is vital for other business sectors.”

The project will involve the construction of sixteen wind turbines (6.8 MW each) with a maximum height of 266.5 metres, and, for the first time in the history of the country, a share of the wind turbine towers will be manufactured locally in Latvia, which will bring a significant amount of added value to the Latvian economy and further develop the manufacturing industry of our country.

The Latvian branch of Nordex company (Germany) will provide innovative technology, as the turbine towers will be constructed using a combination of reinforced concrete and metal. The production of the reinforced concrete tower sections in Latvia will have a positive impact on local production, as it will create 150 new jobs during the production of the equipment, as well as 50 indirect jobs in other production-related services. Nordex partner Consolis Latvia SIA will invest around EUR 2 million in modernising the existing production plant; furthermore, Nordex will supply tower moulds for EUR 1.5 million. This will enable Latvia to produce and export important elements of the wind energy infrastructure supply chains in the future. Significantly, the use of hybrid technology will reduce the carbon footprint by almost 40% compared to steel towers of the same length, making the project environmentally friendly compared to other WPP solutions.

Latvenergo Group aims to develop an additional 2.3 GW of renewable energy generation capacity across the Baltic states. Active development of solar and wind power plants is currently in progress and we plan to increase our RES portfolio by 130 MW by late 2024, to be followed by a 1,000 MW increase by late 2026.

Laflora SIA is one of the largest peat extraction and processing companies in Latvia, which has been producing peat substrates for horticulture, agriculture and forestry since 1995 and exporting its products to more than 40 countries worldwide. The company extracts peat in an area of 2,059 ha in the Jelgava and Augšdaugava municipalities and employs more than 300 people.

Latvenergo Group ranks among the largest power suppliers in the Baltic states. It operates in electricity and thermal energy generation and trade, as well as the distribution of electricity. Since 1939, Latvenergo has been the largest producer of renewable energy in the Baltic states and one of the greenest electricity producers in Europe, generating about half of its electricity at three large hydroelectric power plants. These are supplemented by modernised combined heat and power plants, which generate electricity from natural gas. The Group is developing new green wind and solar generation capacity in the Baltic states and is a leader in electromobility services in the region. All shares in Latvenergo are owned by the Latvian State.