NIB finances improvements in Riga’s district heating infrastructure

The Nordic Investment Bank (NIB) and Rigas Siltums AS have signed a 10-year EUR 20 million agreement to support the 2022–2023 investment programme aimed at enhancing the district heating infrastructure in Riga, Latvia.

The investment programme will entail a total cost of EUR 29 million, with NIB financing 70% of the overall expenses. The programme will be divided into two distinct subprojects.

The first subproject focuses on expanding and reconstructing Riga’s heat distribution systems. Rigas Siltums AS aims to replace outdated pipelines from the 1960s and 1970s. This renovation will enhance the overall performance of the district heating network and reduce energy losses. The heat distribution system expansion will allow new clients to be serviced and a reduction of air pollution.

The second subproject aims to enhance energy generation from renewable resources such as sustainable biomass to improve production effectiveness. Rigas Siltums AS plans to incorporate renewable-resource-based energy generation capacities, reducing reliance on natural gas-generated heat. Additionally, the company will install heat pumps and flue gas condensers to optimise energy efficiency in existing generation facilities. The project will add 53,000 MWh of renewable energy generation and decrease primary energy consumption by 29,000 MWh. The second subproject will be eligible for funding from the proceeds of NIB Environmental Bonds when all the necessary environmental permits have been received.

“NIB’s loan to Rigas Siltums showcases our dedication to advancing a sustainable district heating infrastructure in Riga. Together, we are fostering a greener future by improving energy efficiency and promoting the utilisation of renewable energy sources,” says André Küüsvek, President and CEO of NIB.

“We are thrilled to reach a significant milestone with the support of Nordic Investment Bank for our current investment programme. This funding validates our vision and fuels our commitment to transformative outcomes. As we anticipate future growth, diversifying our funding portfolio will become essential. Our vision of Rigas Siltums AS is as an energy exchange platform focusing on different types of energy, using different renewable sources, and cost-effectively providing customers with energy. We plan to reach 90% of the district heating supply in Riga as in the Nordic countries, and by the end of 2026, we plan for renewable energy to be 90% of our portfolio,” says Rigas Siltum JSC board member Vineta Kutkēviča.

Rigas Siltums AS is a strategic regulated district heating utility owned by the  Riga City Local Government (49%), the State of Latvia through the Ministry of Economics (48.995%), “Enerģijas risinājumi.RIX” Ltd (2%), and Latvenergo Public Limited Company (0.005%). The company is responsible for producing and supplying district heating to Riga City.  

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

For further information, please contact:

Kersti Talving, Senior Banker, Public Sector & Utilities, at +358 10 618 0245,

David Rasmusson, Communications, at +358 50 476 3071, David.Rasmusson@nib.int