Latvia. Rigas Siltums AS
| Date of agreement: | 15 Oct 2024 |
|---|---|
| Country: | Latvia |
| Customer: | Rigas Siltums AS |
| Amount in EUR: | EUR 18 million |
| Maturity: | 15 years |
| NACE sector / loan type: | Electricity, gas, steam and hot water supply |
This loan contributes to climate change mitigation: 10%
Project
The loan has been provided to finance Rigas Siltums’ investment programme related to the expansion and renovation of heat distribution systems. The financed investment programme amounts to approximately EUR 24 million. Previously, NIB also financed the company’s biomass energy generation capacity expansion and upgrades of the district heating network.
Rigas Siltums AS is a regulated district heating utility owned by the City of Riga (49%), the State of Latvia (48.995%), “Enerģijas risinājumi.RIX” Ltd (2%), and Latvenergo (0.005%). The company is responsible for producing and supplying district heating to Riga, with 76% of the heating consumers in the Latvian capital connected to Rigas Siltums’ network.
Fulfilment of NIB's mandate
Investing in the district heating network increases efficiency and ensures higher reliability of the network, thereby improving the provision of an essential public service.
The expansion will provide new clients with cost-effective district heating services. Every year, Rigas Siltums connects around 50 to 60 new buildings to the network with a total load of 20–30 MW.
The renovation entails the replacement of around 10 km of old heating networks, as well as building 3.5 km of new heating networks to connect new heat energy consumers to centralized heat supply. According to the company, the renewal will result in a reduction of up to 70% in heat losses and the provision of approximately 10,000 MWh in energy savings each year.
Moreover, the network digitalisation will increase the efficiency of diagnostics and planning. The greater use of digital solutions will allow a quicker and more precise service, thereby reducing the need for costly and troublesome repair works.
Impact indicators in relation to the investments:
- Length of refurbished networks, km
Sustainability summary
According to the Riga city air pollution reduction plan, the expansion and use of centralised heating systems will help reduce air pollution from individual sources, and the reconstruction of existing pipelines will reduce heat losses.
The investment programme does not include assets that would extend the lifetime of the energy generation from fossil fuels. A separate environmental permit for the network investment is unnecessary.
