Latvia. Latvenergo A/S
| Date of agreement: | 17 Dec 2024 |
|---|---|
| Country: | Latvia |
| Customer: | Latvenergo A/S |
| Amount in EUR: | EUR 230 million |
| Maturity: | 15 years |
| NACE sector / loan type: | Electricity, gas, steam and hot water supply |
Project
The loan has been provided for the Latvian state-owned power utility company Latvenergo AS to finance investments in improving the electricity distribution network and increased renewable energy generation capacities. The loan programme provides financing for Latvenergo’s investment programme during the period between 2024 and 2026.
The investment programme will support the company’s 2022–2026 strategy to accelerate the rollout of renewable energy sources in the Baltics. The company’s target is reach up to at least 600 MW of solar and wind energy generation capacity by 2026.
In addition to Latvenergo’s current 1,559 MW hydropower capacities, the company’s current solar and wind production capacity is 106 MW. Investing in additional power generation facilities is in line with the company’s objective of becoming a climate-neutral power producer by 2040.
Latvenergo AS is a state-owned power utility in Latvia. It is engaged in generating electricity and heat and trading both those resources, as well as natural gas. The electricity distribution is operated by its subsidiary company, Sadales tīkls AS, Latvia’s largest distribution system operator.
Fulfilment of NIB's mandate
Productivity and environment
The loan will finance investments in the updating of Latvia’s electricity distribution system, including substation upgrades, the refurbishment of more than 3,000 kilometres of power grid network lines, constituting more than 4% of the company’s total network length. Most of the planned network line refurbishment works will replace overhead lines with underground lines, improving the security of supply in Latvia, and climate-proofing it and reducing possible energy losses.
Latvenergo will also install 19,000 new smart meters and replace an additional 19,000 smart meters to further digitalise their electricity networks and decrease losses in the system.
With this loan facility, Latvenergo will additionally develop four solar farms across Latvia, with a combined capacity of over 300 MW.
Additionally, the company will refurbish two hydropower plants on the river Daugava, improving the plants’ efficiency through reduced energy losses.
Impact indicators in relation to the investments:
- Refurbished power lines, km
- Refurbished sub-stations, number
- Smart meters installed and refurbished, number
- Solar generation, GWh
- Solar installed capacity, MW
- Hydropower generation units renewed, number
Sustainability summary
No negative environmental or social aspects have been identified in relation to the project.
