Announcements

On 9 April 2024, the Cabinet of Ministers of the Republic of Latvia examined the informative report “On State and Local Government Capital Companies to be Promoted for Initial Public Offering” and, inter alia, by Minute Decision No. 70.§, adopted the following protocol decisions related to the activities of Latvenergo Group:

1. The Ministry of Economics and Latvenergo AS were ordered to draw up an assessment on the most optimal solution for the structure of Latvenergo AS Group, considering the possibility of merging the existing and planned renewable energy projects of Latvenergo AS Group into one subsidiary;

2. Latvijas valsts meži AS was permitted to terminate its participation in Latvijas vēja parki SIA, the joint venture of Latvijas valsts meži AS and Latvenergo AS, by alienating all shares (20%) of Latvijas vēja parki SIA owned by Latvijas valsts meži AS for the benefit of Latvenergo AS;

3. In order to implement the installation of the total new RES (RES - renewable energy sources) capacity of 2,300 MW provided for by the strategy of Latvenergo Group, the Ministry of Economics was instructed to draw up a draft order on the authorisation for determining a different amount of dividends to be paid by Latvenergo AS to the State budget as of 2027 in the medium-term Latvenergo AS Strategy for 2026–2030, bringing the amount of dividends to be paid by Latvenergo AS to the State budget in line with the average dividend payout ratio of European energy sector market participants and to submit the aforementioned draft order to the Cabinet of Ministers for consideration;

4. It was determined that Latvenergo AS must retain its participation in Sadales tīkls AS, at least until the total new RES capacity of 2,300 MW is reached, as provided for by the Latvenergo AS Group strategy, to ensure that the long-term financing and development opportunities of Latvenergo AS Group are not affected;

5. The Ministry of Economics was instructed to prepare an owner’s expectation letter for the medium-term strategy period of Latvenergo AS by 31 July 2024, including expectations regarding investments, capital structure, return on equity and dividend policy parameters.