Latvenergo receives a loan from the European Investment Bank for the refurbishment of its distribution network
March 7, 2025
The European Investment Bank (EIB) has granted a loan of EUR 200 million to Latvenergo AS to modernise its electricity distribution network. The aim of this funding is to improve the reliability of electricity supply to the residents and businesses of Latvia, promote the use of renewable energy sources, and strengthen the energy security and climate policy of Latvia.
The term of the concluded loan agreement of EUR 200 million is 15 years, providing for investment funding during the period from 2024 to 2026. As part of the modernisation of the electricity distribution network, digital functions will be added to the network to improve its efficiency and stability, ensuring a better quality electricity supply to the residents and businesses of Latvia while contributing to the EU’s fight against climate change.
“Modernising the electricity distribution network of Latvia is important for both climate and energy security,” said Thomas Östros, the EIB Vice-President. “This project will significantly increase the reliability of the electricity supply in the country and accelerate the integration of renewable energy sources into the energy system, paving the way for a sustainable and resilient energy future. The EIB is pleased to support Latvenergo in this transformational effort.”
Guntars Baļčūns, Member of the Management Board of Latvenergo AS: “We are investing heavily in promoting renewable energy and modernising our distribution network to make a significant contribution to the economy of the country. These targets require significant financial resources, and the EIB provides access to competitive funding that supports both business and climate objectives. Our successful cooperation with the EIB has continued for more than 25 years, and this loan will allow us to use the resources we invest in solar and wind parks more efficiently.”
The EIB funding offers Latvenergo AS attractive terms, including flexible payments and a longer maturity compared to market alternatives. This support is expected to help attract additional long-term funding and strengthen the position of Latvenergo in the sustainable energy sector.
This is the seventh funding agreement between the EIB and Latvenergo, demonstrating the strong and long-standing cooperation between the two parties. The EIB loan is a part of the long-term strategy of Latvenergo to make large-scale investments and develop sustainable energy.
As it was informed in December 2024 Latvenergo AS has attracted loan also from Nordic Investment Bank for a total amount of EUR 230 million with a 15 year maturity to finance the development of solar parks, refurbishment of hydropower plants and modernisation of Latvia’s electricity distribution network.
About the European Investment Bank: The European Investment Bank is the financial institution of the European Union providing long-term funding for sustainable development. The EIB operates in more than 160 countries and supports projects that promote economic growth, employment and environmental protection.