The Nordic Investment Bank (NIB) has granted a €230 million loan to Latvenergo AS, Latvia’s state-owned power utility, to support the company’s investment in renewable energy projects and upgrades to its hydropower plants and electricity distribution network.
A key portion of the funding will be used to refurbish hydropower plants along the river Daugava. This upgrade will improve the plants’ efficiency by reducing energy losses, which will help increase the country’s hydropower capacity.
The loan will also finance the development of four solar farms with a combined capacity of over 300MW, with the largest farm being built in Aizpute, western Latvia. This solar expansion is part of Latvenergo’s broader plan to significantly increase renewable energy generation in the country.
Additionally, the funds will be used to modernise Latvia’s electricity distribution network. The company will revamp substations and replace many overhead power lines with underground cables, improving supply security. New smart meters will also be installed to digitalise the network and reduce energy losses.
“Improving the security of supply in the energy sector is key for productivity in the Nordic-Baltic region. By investing in building renewable energy capacities, Latvenergo can bring new opportunities for economic growth in Latvia,” said NIB President & CEO André Küüsvek.
Guntars Baļčūns, CFO of Latvenergo AS, expressed appreciation for the long-standing partnership: “Latvenergo AS has cooperated with Nordic Investment Bank already for more than 20 years and highly appreciates the trust shown by the bank offering us long-term financing for the Group’s investment programme and continuing cooperation oriented towards development and business sustainability.”
The company aims to accelerate its renewable energy rollout, targeting 600MW of solar and wind capacity by 2026, in addition to its ongoing hydropower developments. This goal aligns with Latvenergo’s broader strategy to become a climate-neutral power producer by 2040. Currently, the company operates 106 MW of wind and solar capacity.
Latvenergo’s hydropower projects on the Daugava River play a key role in its renewable energy strategy. The company operates through its subsidiary Sadales tīkls AS, Latvia’s largest electricity distribution system operator, and is involved in electricity and heat production, as well as energy trading.
NIB, owned by eight Nordic and Baltic countries, finances public and private projects within and outside its member countries and holds the highest possible credit ratings from Standard & Poor’s and Moody’s.
