BRIEFLY ABOUT THE GROUP

Mission. Vision. Strategy

We energize the growth of society!

It is in our hands to take care of our customer today, meanwhile considering the impact on our future generations. We are well aware that natural resources are scarce, thus we are already looking for solutions to handle and utilize them wisely. We want to see a world in which every move is initiated by sustainable energy. We believe that you get what you give – as the energy always transfers from one form to another. Therefore, by transforming the power of nature into energy, we help to start the movement of growth for all of us! With the support of innovation, we make our services sustainable and suitable for everyone's needs, encouraging others to change their habits and grow, as well as to stand up for the wellbeing of our society.

Latvenergo Group sustainable growth strategy Strategy (infographic)

Vision

We are the leading sustainable solutions provider in the energy industry.

Mission

We drive the development of the energy industry by providing friendly, innovative and sustainable solutions

Latvenergo Group strategy for 2017–2022 aims to further strengthen the Latvenergo Group position in the Baltics, with possible development towards the Nordic countries. Creation of new products and services plays a significant role in the achievement of these goals, promoting the interaction of generation and trading in line with the trends of the energy industry.

Energy industry faces changes at both regional and global level, triggered by new technologies and user requirements. Therefore, energy companies extend and review the scope of their operations, offering new approaches and services, and acquiring new markets.

Changes in the industry are also relevant for Latvian national economy: new possibilities have been created by cross-border electricity interconnections, smart services are entering the day-to-day consumption, network digitalisation is ongoing, and new energy markets are opened. During the development of the next period strategy, account was taken not only of these, but also other factors affecting the Group's business environment at both national and international level.

Among the key strategic choices defined, priority is assigned to sustainable development in all areas of operation. This is justified by the goals reached during the previous strategy period and the evaluation of political, economic, social and technological factors. The sustainability position is complemented by new product and service offers in the existing market, and extension of operations outside the home market (under certain conditions). Operational goals of Latvenergo Group for 2017–2022 were set based on the above strategic choices.

WITH HEART

We are open and passionate

WITH MIND

We do the right things and continuously learn

WITH ENERGY

We are brave and persistent

WITH FUTURE OUTLOOK

We do good for the clients and society

Latvenergo Group's operational goals 2022–2026

Trade

Adding value

By improving existing services and developing new products, Latvenergo with its Elektrum brand becomes the most valuable trader in the Baltics.

Our customer base and satisfaction continues to grow.

Example of results: Elektrum as a strategic leader in microgeneration, electric charging, electrification.

Generation

Green generation

Increasing the generation capacity to such an extent that by 2030 the domestic energy consumption of Latvia would be fully covered by the energy of nature — water, solar and wind.

This will significantly contribute to the energy independence of our country.

Example of results: Implementation/acquisition of domestic and overseas renewable energy projects with 600 MW capacity during the strategy period.

Networks

Delivering safely and efficiently

Reducing the frequency and duration of power outages, ensuring uninterrupted, safe and reliable energy supply.

Developing a smart grid where producers and consumers share information, ensuring smarter energy consumption.

Example of results: Infrastructure for the creation of public electric charging points and microgeneration, preventing more than 200 thousand tonnes of CO2 emissions.

Electromobility

Changing the role of energy

Integrate households and companies generating their own energy using solar panels in the energy market.

Promote sustainable and smart mobility based on a wide electric vehicle charging network throughout the Baltic states.

Example of results: 1,200-1,500 public electric charging ports in the Baltics.

Latvenergo Group's financial targets 2022–2026

Profitability

Return on equity excluding distribution > 7%

Capital Structure

Ratio between adjusted funds from operations and net debt > 25%

Dividend Policy

Dividend payout ratio> 64%

Credit Rating

To maintain an investment grade credit rating

Organizational structure and governance

Organizational structure

Latvenergo Group comprises the parent company Latvenergo AS and six subsidiaries. Latvenergo AS ensures generation and trade of electricity and thermal energy as well as trade of natural gas. Sadales tīkls AS ensures electricity distribution to each customer. Elektrum Eesti OÜ and Elektrum Lietuva UAB conduct electricity trade in Estonia and Lithuania respectively. Enerģijas publiskais tirgotājs AS carries out administration of electricity mandatory procurement. Latvijas vēja parki SIA, a joint venture of Latvenergo AS and Latvijas valsts meži AS, aims to develop wind parks of strategic importance.

Liepājas enerģija SIA (51% of shares) ensures generation, transmission, distribution and supply of thermal energy in the city of Liepaja as well as generation of electricity in cogeneration mode. Latvenergo AS also holds 46.3% of the shares in the closed pension fund Pirmais Slēgtais Pensiju Fonds AS, as well as 0.005% of the shares in Rīgas siltums AS.

For more information about the governance of Latvenergo Group, see section Investors/Corporate governance.

Management Board

The Management Board of Latvenergo AS

The Management Board of Latvenergo AS was elected for a five-year term. The Management Board consists of five members:

Mārtiņš Čakste

Chairman of the management board, Chief Executive Officer

Dmitrijs Juskovecs

Member of the management board, Chief Commercial Officer

Guntars Baļčūns

Member of the management board, Chief Financial Officer

Harijs Teteris

Member of the management board, Chief Operating Officer

Ilvija Boreiko

Member of the management board, Chief development Officer

Supervisory Board

The Supervisory Board of Latvenergo AS

The Supervisory Board of Latvenergo AS was elected at the Shareholders' Meeting of Latvenergo AS on 10 June 2020.

Aigars Laizāns

CHAIRMAN OF THE SUPERVISORY BOARD

Kaspars Rokens

DEPUTY CHAIRMAN OF THE SUPERVISORY BOARD

Toms Siliņš

MEMBER OF THE SUPERVISORY BOARD

Gundars Ruža

MEMBER OF THE SUPERVISORY BOARD

Rodžers Jānis Grigulis

MEMBER OF THE SUPERVISORY BOARD

Awards

The most valuable energy company

Latvenergo AS is rated the second most valuable company in Latvia in the TOP 101 most valuable companies in Latvia. Latvenergo AS ranks as the most valuable energy company in the TOP 10 most valuable companies in the Baltics.

Diamond category in the Sustainability Index

In 2023, both Latvenergo AS and Sadales tīkls AS were awarded the Diamond category of the Latvian Sustainability Index.

ESG performance above the sector-specific Prime threshold

The environmental, social and governance performance of Latvenergo AS was awarded a Prime rating in the ISS ESG assessment.

Best investor relations

At the beginning of 2023, Latvenergo AS received the Nasdaq award for best investor relations on the bond market in the Baltic states for the third time.

Several awards in the TOP 500 Companies of Latvia

Latvenergo AS is recognised as the largest state-owned capital company, the largest energy company and the largest EBITDA earner in the TOP 500 Latvian Companies. Sadales tīkls AS is rated as the third largest company in the energy sector and the third largest state capital company.

Family-Friendly workplace

Latvenergo AS was granted the status of a Family-Friendly Workplace by the Society Integration Fund until 3 June 2025.

Safest Company Fleet

In the Safest Company Fleet competition, Sadales tīkls AS received the Gold Award in the Local (Baltic) Cargo Carriers and Special Purpose Fleets category. Latvenergo AS won a silver award in the category Lowest Risk, State and Municipal Fleets.

Sustainable brand

In the European Sustainable Brands Index, the brand Elektrum of Latvenergo AS was recognised as the third most sustainable brand in Latvia.

History

1939

In October, the first Daugava hydropower plant – Ķegums HES was launched, while in December the Latvian State President and Prime Minister K. Ulmanis signed the Law on Establishing the State Electricity Enterprise “Ķegums”. Latvenergo Group considers this date as its birthday.

1955

To ensure centralized supply of thermal energy to Riga in the cold months, the Riga TEC-1 started operation. The 2nd phase was completed in 1959, achieving an electric capacity of 129 MW.‎

1960 - 1998

1960

Construction of the first 330 kV electricity line from the Baltic VRES (State Regional Power Plant) in Estonia to Riga and Siauliai, with a switching substation in Salaspils, was begun. The transformation of 88 kV transmission lines for 110 kV voltage was completed.

1966

HES with 10 hydropower units reached the designed capacity of 825MW. The power plant played a significant role in Latvian energy supply and ensured stable cooperation within the Baltic region energy system.‎

1974

The damming of the Daugava by the Riga HES was undertaken, and in November the first hydropower unit was actuated. In 1979, the capacity of the Riga HES was increased from 384MW to 402MW.

1979

The Riga TEC-2 reached full designed electric capacity – 390MW. The Ķegums HES-2 with the capacity of 192MW began working.‎

1989

Latvenergo Production company was created – the Latvian energy sector returned under management of Latvian institutions. The Latvian red-white-red flag was ceremoniously raised by the Latvenergo headquarters building on P. Brieža street, Riga.

1992

The Baltic States Power Systems Association was founded. The association's work was coordinated by the Baltic Dispatcher Centre (DC) – its organisational unit situated in Riga.‎

1996

The reconstruction project was launched for 330/110/20 kV substations and electricity transmission and distribution networks constructed during the Soviet period.

1998

Latvenergo became a corresponding member of the Union of the Electric Industry EURELECTRIC. ‎

17 energy companies from the Baltic Sea region established the Baltic Ring Electricity Cooperation association.‎

2001 - 2020

2001

The reconstruction of the Ķegums HES-1 was completed.

The largest reconstruction project in the history of the Pļaviņas HES was finished, overhauling 6 hydropower units.

2005

The reconstruction of the CHPP-1 was finished, installing an environmentally friendly combined-cycle power unit. The capacity of the plant reached 142 MW.‎

Foundation of Liepājas enerģija SIA – a producer, supplier and trader of electricity and thermal energy in the Liepāja region. Latvenergo owned a 51% share in the newly founded company.‎

2006

The submarine cable Estlink – the first energy interconnection between the Baltic and Nordic States – was unveiled in Tallinn. It was a joint project by Latvenergo, Eesti Energia, Pohjolan Voima, Helsinkin Energia and Lietuvos Energija.

Latvenergo AS signed a contract with the Scandinavian electricity exchange Nord Pool Spot. Latvenergo AS was the first energy company in the Baltic States that became a direct participant in the electricity exchange.

2007

Latvia opened the free electricity market to all customers. ‎

Latvenergo AS founded a subsidiary in Estonia. ‎

A legally independent distribution system operator Sadales tīkls AS started operation.‎

2008

Latvenergo Group introduced a new logo.

The construction of electric networks for historically non-electrified rural homesteads was completed.

Latvenergo AS founded a subsidiary in Lithuania.

2009

The ceremonious unveiling of the first reconstructed power unit of the Latvenergo CHPP-2: the most advanced combined heat and power plant in the Baltics. The capacities of Latvenergo CHPP-2: 662 MWel and 1347 MWth.‎

2012

Latvenergo AS introduced a new trade mark Elektrum. Latvenergo AS market share in the Baltics was 32%.

Latvenergo AS was the first state-owned company issuing bonds.

2013

The total capacity of Latvenergo CHPP-2 after reconstruction in 2013 is approximately 832 MWel and thermal capacity – approximately 1120 MWth. The CHPP-2 /2 is the most advanced and efficient combined heat and power plant in the Baltic States.‎

2014

Enerģijas publiskais tirgotājs AS, a subsidiary of Latvenergo AS, was established on 25 February, which took over the mandatory procurement administration functions from Latvenergo AS.

2015

As of 1 January 2015, the electricity market is open for households in Latvia, completing the electricity market liberalisation in the country. Customers in the household segment are offered a new Elektrum products.‎

Upgrade of the Group's credit rating from Baa3 to Baa2 in early 2015 by the international credit rating agency Moody’s Investors Service. The rating agency indicates the stable outlook of Latvenergo AS and its economic significance.‎

2017

On 26 May, Latvenergo AS started natural gas trade to customers in Latvia and Estonia.

On 14 August, representatives of Latvenergo AS rang the traditional trading session opening bell at Nasdaq exchange in New York. This tradition is entrusted to those companies which have demonstrated outstanding achievements in their operations: Latvenergo is the first company in the Baltics to receive the Nasdaq exchange award for the Best Investor Relations among Bond Issuers.

2018

Dry and hot weather conditions in Europe have caused an unexpected rise in electricity prices. Using the advantages of its diversified generating facilities, Latvenergo Group generated historically the highest amount of electricity (2.6 TWh) at its CHPPs.‎

By promoting interest of youth in exact sciences, Latvenergo organises the first physics festival in Latvia bringing together more than 2000 visitors and organisations.‎

2019

The Elektrum trade brand of Latvenergo AS starts operating on the natural gas market for Latvian households.

Elektrum opens the first electric car charging stations, thus extending its activities into new markets in the sector.

Latvenergo celebrates its 80th anniversary by recalling the historical origins of the company, when the Law on the establishment of the National Electricity Company Ķegums was signed in the Riga Castle

2020

Elektrum strengthens its position in the solar panel market in the Baltics and starts to sell electricity to Lithuanian households‎

Continuing to develop electromobility - Elektrum provided 36 electric car charging ports ‎

On 10 June transmission system assets have been unbundled from Latvenergo Group‎

2021 - 2024

2021

The CHPP-2 heat storage tank, which is the largest project of its kind in the Baltics, was commissioned in March. It ensures thermal energy storage, primary energy savings and reduced CO 2 emissions.

The first Elektrum solar park in Lithuania with a capacity of 1.5 MW has been put into operation.

The strategy of Latvenergo Group for 2022-2026 has been developed.

2022

The companies of the Group have provided both technical and financial support for the reconstruction of the Ukrainian energy system. A three-phase 110 kV transformer, 49 transformers of Sadales tīkls AS and 10 quadricycles were delivered to Ukraine. Employees have donated money for external batteries, helped to make trench candles, and coordinated the arrival and accommodation in Latvia of Ukrainian energy engineers and their families

Latvenergo AS was awarded the highest - Diamond category for the first time in the Latvian Sustainability Index

2023

Elektrum Drive EV charging network is becoming the most extensive in Latvia, and it is also growing rapidly in Lithuania and Estonia. In total, around 600 charging points are available to customers.

The Sustainability Strategy of the Group for 2024-2026 was approved and complements the medium-term operational strategy with objectives and targets in environmental, social and governance areas.

2024

EUR 530 million were invested, 2/3 of investments were made in new wind and solar generation capacities. In 2024, Latvenergo AS acquired two wind power plant projects: Telšiai in Lithuania (124 MW) and Laflora Energy SIA in Latvia (109 MW). Both wind power plants plan to start generating electricity in 2026. The Akmene WPP (19.6 MW) in Lithuania started operating. New solar capacity is also being successfully developed - Latvenergo AS acquired DSE Aizpute Solar SIA to build the largest solar power plant to date (265 MW) by 2025. At the end of 2024, Latvenergo Group had 14 solar parks with an installed capacity of 102.2 MW

Elektrum Next SIA, 100% owned by Latvenergo AS, has been established and commenced its work. The establishment of Elektrum Next separates new RES assets from the Group’s other business functions, concentrating the Group’s RES competencies and accelerating the development of new projects in Latvia, the Baltic states and the region

Briefly about the Group

Operating segments

Generation and Trade

Distribution

Facts

Data as of 31.12.2025

1939

3,383

3

4,696 GWh

1,554 GWh

66%

1,566 MEUR

198 MEUR

4,968 MEUR

792 MEUR

Baa2 (stable)

22%

914,000

6,053 GWh

1,605 GWh

1,554 GWh

3,101 MW

92,516 km

6,236 MVA

1,798 MW

Mission. Vision. Strategy

We energize the growth of society!

Vision

Mission

WITH HEART

WITH MIND

WITH ENERGY

WITH FUTURE OUTLOOK

Trade

Generation

Networks

Electromobility

Profitability

Capital Structure

Dividend Policy

Credit Rating

Organizational structure and governance

The Management Board of Latvenergo AS

Mārtiņš Čakste

Dmitrijs Juskovecs

Guntars Baļčūns

Harijs Teteris

Ilvija Boreiko

The Supervisory Board of Latvenergo AS

Aigars Laizāns

Kaspars Rokens

Toms Siliņš

Gundars Ruža

Rodžers Jānis Grigulis

Awards

The most valuable energy company

Diamond category in the Sustainability Index

ESG performance above the sector-specific Prime threshold

Best investor relations

Several awards in the TOP 500 Companies of Latvia

Family-Friendly workplace

Safest Company Fleet

Sustainable brand

History

1939

1955

1960

1966

1974

1979

1989

1992

1996

1998

2001

2005

2006

2007

2008