Latvenergo: the development of wind farms is a cooperation opportunity for Latvian entrepreneurs
October 17, 2022
Latvenergo AS plans to implement renewable energy projects in the domestic market as well as outside it with a capacity of 600 MW by 2026 or during the strategy period of the Group, and with a capacity of 2,300 MW by 2030. The forecasted capacity is planned to be achieved both by developing the company’s own generation capacities and by evaluating the attraction of commercially justified external projects after receiving offers from local entrepreneurs.
The strategy of Latvenergo AS, which was approved last year by the shareholder, the Latvian state, envisages increasing the portfolio of renewable energy by developing wind and solar power plants in the domestic market and beyond. The implementation of the strategy will promote the achievement of climate neutrality in Latvia by 2050.
To achieve national climate goals and strengthen energy security, Latvenergo AS is developing its portfolio of renewable energy generation, focusing on establishing high-capacity wind power plants. The planned capacity can also provide Latvian entrepreneurs opportunities for cooperation with the Group, i.e., primarily for those who have started their wind farm projects, as well as for related industries, such as technology and infrastructure provision. The Group is open to offers and negotiations with local entrepreneurs.
Therefore, to achieve the goal, the Group implements its own wind farm projects and considers opportunities for cooperation with several other wind farm developers. For example, currently, Latvenergo also considers the purchase of wind farm projects whose owners, for various reasons, have decided not to implement the project themselves and will not continue operating in the wind energy sector. Currently, there are projects under consideration, the potential total capacity of which exceeds the targets, so we are conducting a detailed evaluation and comparison to select commercially reasonable proposals.
Latvenergo has the experience, necessary resources, and competence to select and evaluate the most economically advantageous projects and implement them by attracting the cheapest funding. If necessary, the selection of potential cooperation parties for the development of wind farms is carried out by experts who study the offers on the market and evaluate the compliance of the proposed projects with certain criteria, their implementation possibilities, deadlines, and costs, thus, ensuring the effective use of funds, compliance with the requirements of current laws, as well as the fulfilment of strategic objectives in the face of intense competition conditions.
Right now, wind power is one of the most economically efficient solutions, especially with the currently present capacity deficit in Latvia and the Baltics, which negatively affects the electricity market prices. With new wind power plants, it is also possible to generate competitive, green, and environmentally friendly electricity cost-effectively and without subsidies in Latvia. The development of high-capacity wind farms is a project benefitting the interests of the state and the entire society of Latvia. Independence from external energy resources is an invaluable pillar of national security and sovereignty for Latvia and all Baltic states.
Achieving the planned capacity of wind farms in the shortest possible time will be an important investment for the overall electricity generation portfolio of Latvia. By promoting the generation of renewable energy and building high-power wind farms, the energy independence of Latvia will be promoted, emission-free energy systems will be introduced, the use of fossil energy resources will be reduced, and this will also contribute to lower electricity prices in the nearby region.