National joint venture Latvijas vēja parki SIA - for Latvia's energy independence, security and stability

On 22 July 2022, a significant step was taken to ensure Latvia's energy independence - a joint venture of Latvenergo AS and Latvijas valsts meži AS - Latvijas vēja parki SIA was established.

Latvijas vēja parki SIA is a national company whose goal is energy independence, long-term renewable energy and value growth for the benefit of all Latvian citizens and businesses. The joint venture is the first to provide a compensation mechanism for local communities. The objective of the joint venture is to build wind farms with a total capacity of at least 800 megawatts (MW) by 2030, which will ensure a significant increase in renewable electricity generation capacity and contribute to Latvia's progress towards energy independence, security and climate neutrality, while reducing GHG emissions, preserving natural diversity and developing a circular economy.

The establishment of the joint venture comes at a time when Latvia and the world are facing very serious geopolitical, energy independence and security challenges, as well as climate change and its consequences.

Prime Minister Krišjānis Kariņš emphasises: "Today is an important day in strengthening Latvia's energy independence - we celebrate the establishment of the joint venture Latvijas Vēja parki by Latvenergo and Latvijas Valsts meži, a way in which the country addresses in the medium term the issue of reducing Latvia's dependence on fossil energy sources, which until now have been mainly imported from Russia. This said, not tomorrow, but over several years, Latvia will be able to generate the electricity from renewable energy sources, using less imported fossil fuels. This means predictable electricity prices and resource availability for citizens and businesses, as well as strengthening the competitiveness of our economy. I would like to thank the management of Latvenergo and Latvijas Valsts meži for their ability to find common ground to implement a project of importance to the Latvian economy and society. I would also like to thank the Minister of Economics Ilze Indriksone and the Minister of Agriculture Kaspars Gerhards for their work, which once again shows that by bringing together different ideas and political convictions, we in the Government can unite and find common ground to strengthen our country and move Latvia's development in the right direction."

The joint venture aims to maximise the benefit to society by exploiting the synergies of combining the assets, resources and competences of two strategic state-owned companies. Minister of the Economics Ilze Indriksone states: "To strengthen Latvia's energy independence, it is essential to build large-scale strategic wind farms to increase local generation capacity, make a significant contribution to stabilising electricity prices, and ensure competitive electricity costs for Latvian society and businesses in the long term. In addition, a project of this scale will also provide significant investment for the Latvian economy and boost the economic activity of the surrounding regions. The project's location in Latvia will also stimulate long-term demand for high-tech service industries in Latvia."

The joint venture Latvijas vēja parki SIA is a combination of the experience, capabilities and knowledge of two Latvian capital companies - Latvenergo AS and Latvijas valsts meži AS - for the overall benefit of the state, society, entrepreneurs and the region. The pillars of the national company's values are a cleaner and greener future, respect and synergy, and a share of the earnings to the local residents.

Latvijas vēja parki SIA will develop a number of large-scale wind farms with a total capacity of at least 800 MW. The wind farms and the necessary infrastructure will be designed, constructed and operated on state-owned land managed by Latvijas valsts meži ASas well as on land owned by Latvijas valsts meži AS, where the joint venture has acquired development rights. The share capital of the joint venture is EUR 2 million at the time of establishment, 80% of the shares are owned by Latvenergo AS and 20% by Latvijas valsts meži AS. The interim management of the company includes the Chair of the Management Board of Latvijas vēja parki SIA Ilvija Boreiko, and the Member of the Management Board of Latvijas vēja parki SIA Zane Norenberga.

The joint venture has a very ambitious goal - to ensure that Latvia achieves its energy independence and climate neutrality goals by 2030, in line with the National Energy and Climate Plan.

"The energy code of Latvia and Latvenergo is to be found in renewable energy. Just as the Ķegums HPP opened a bright new page in 1939, we are now at the beginning of a new chapter - Latvijas vēja parki SIA is a new start, creating a high-quality industry and making the best use of our national resources for the common good, independence and security," says the Chairman of the Management Board of Latvenergo AS Mārtiņš Čakste.

Based on independent, competent expert assessment and using the latest technologies, the deployment of wind turbines is feasible and economically viable almost everywhere in Latvia. Minister of Agriculture Kaspars Gerhards believes: "The establishment of the joint venture Latvijas vēja parki SIA is a significant event which will allow us to take an important step towards the energy independence of our country. This project also marks a new step in the development of the Latvian economy - a new type of joint cooperation between leading state capital companies, where new added value will be created using the accumulated knowledge and experience of each company. With more than half of Latvia's territory covered by state-owned forests, it will be possible to locate wind farms further away from populated areas, while stimulating economic activity in the regions."

Wind farms are to be built in locations with the least possible impact on the landscape, local residents and the environment.

"The state has entrusted us, Latvijas valsts meži, to take care of a large part of Latvia's biggest and most valuable resource - the land; therefore, we are constantly introducing the most efficient and innovative ways to manage it sustainably and at the same time create the greatest possible value for the entire Latvian society. Today, the knowledge and experience of a team of two strong Latvian companies opens new doors for smart management of national resources - clean energy generation," said the Member of the Management Board of Latvijas valsts meži AS Jānis Lapiņš.

Latvijas vēja parki SIA is the first wind farm developer to offer municipalities benefit from wind energy. By sharing the proceeds of wind energy sales, compensatory payments will be made to local municipalities, boosting the well-being of local communities.

"Transparency is our prerequisite for this project - we are a Latvian national company and we are interested in a successful long-term cooperation. It is a respectful relationship with the local community and the environment, which fully reflects Latvenergo’s strategic direction to use the local resources in the best way," says the Member of the Management Board of Latvenergo AS Kaspars Cikmačs.

"The wind power generated by the joint venture's wind farms will meet society's demand for clean, reliable and affordable energy. Our core values are respect for the environment and the landscape, as well as ensuring a greener future for next generations, because we are a national company, and we are here to stay! The construction of large-scale wind farms in a safe and socially responsible manner, paying close attention to the coexistence of people, the environment and energy, is the backbone of Latvia's energy independence and economic sustainability," says the Chairwoman of the Management Board of Latvijas vēja parki SIA Ilvija Boreiko.

The planned capacity of Latvijas vēja parki SIA will be an invaluable contribution to Latvia's electricity generation portfolio. Promoting renewable energy generation and building large scale wind farms will contribute to Latvia's energy independence, the introduction of emission-free energy systems, reducing the use of fossil energy sources and improving the electricity import-export balance, which will also contribute to the stability of electricity prices in the region. Latvijas vēja parki SIA will not only generate electricity but will also contribute to the development of innovative technologies and transformation in several sectors of the economy - energy, industry, agriculture and transport.

More information on the large-scale wind farms project:

Public opinion:

  • 87.6% of the Latvian population believe that Latvia should strive to generate all of its own electricity. *
  • 77,2% of the Latvian population support the establishment of wind farms in Latvia.*

(*SKDS Research Centre survey data from April-May 2022)

Economic and societal benefits:

  • Investment - approx. EUR 940 million
  • Development of related industries - approx. EUR 20 million per year
  • Dividends to the state budget for education, medicine and national defence - approx. EUR 50 million per year
  • Additional green energy 800 MW/+2.7 TWh/year
  • Minimal CO2 footprint

Future value:

  • Improvement of the external trade balance by EUR 140 million per year
  • Increase in yields on state forest land - approx. EUR 5.5 million per year
  • All profits during the project's life cycle go to society

Environmental impact:

  • Wind farms will be built where they have the least impact on the landscape, local people and the environment
  • The choice of the site will be determined by studies on habitats and other natural values carried out by competent and independent Latvian and international experts
  • The use of advanced technologies will allow to reduce the number of turbines at least 5 times
  • Deforestation up to 0.8 hectares per turbine, or a maximum of 0.01% of the state forest land managed by Latvijas valsts meži
Ivita Bidere
AS “Latvenergo”
Preses sekretāre
Tālr.: 67728809; 29279158