Latvenergo AS has acquired 100% in the Telšiai project of Utilitas Wind, which will already enable the company to start wind power generation with a capacity of 124 megawatts (MW) in the first quarter of 2026. The construction of the wind farm will be managed by Utilitas Wind until completion. Installation of 20 Vestas 6.2 MW wind turbines is scheduled within the framework of the project, providing power generation that can ensure annual electricity consumption for more than 125,000 households. The implementation of the project is an important step in strengthening the competitive position in the Lithuanian market, as well as a factor in lowering the electricity price for customers in the Baltic states. For Latvenergo, this transaction is a significant breakthrough in the execution of the Group strategy.
In order to achieve dynamic and rapid advances towards the goals set out in the Latvenergo Group strategy, Latvenergo needs to build a diversified portfolio of renewable energy (RES) generation capacity across the entire domestic market – in Latvia, Lithuania and Estonia, as well as to implement geographic expansion beyond.
Chairman of the Management Board of Latvenergo AS Mārtiņš Čakste: “I am delighted to conclude this international transaction now, as the project is not only very ambitious in terms of the capacity of the farm to be built but it will also give us an advantage in terms of commercial start-up – in less than 24 months we will be able to run modern and efficient green energy facilities that will supply our well-connected domestic market. Thanks to the team of Latvenergo and professionals from Utilitas, as well as to our shareholder – the Ministry of Economics – for their support. By promoting energy independence and greening of electricity production, the Lithuanian state is pursuing a very active RES development policy – it is a pleasure to be a part of this policy.”
Minister of Economics Viktors Valainis: “Strong regional transactions and export growth are vital for the economy of Latvia. And this is an excellent example of how the free movement of capital works for the benefit of the economy of Latvia and the Baltic states – the Latvian company will benefit from being able to produce the electricity required by the entire region and reduce the energy dependence of the Baltic states on external suppliers. Furthermore, it is important for the entire Baltic region to build up sufficient new green energy capacities in the nearest future, to ensure our confidence in the ability of our energy systems to function smoothly after the planned disconnection from the Russian BRELL ring early next year.”
Latvenergo Group has significantly expanded its business in Lithuania in recent years, and Elektrum Lietuva is currently one of the leading Lithuanian electricity trading companies. In 2023, Latvenergo sold 30% of the total electricity sales of the company to customers in Lithuania – a 60% increase year-on-year. The number of Elektrum customers in Lithuania already exceeds 180,000 (an increase of 50,000 customers compared to 2022).
At the end of 2023, Latvenergo AS, together with the consultant PricewaterhouseCoopers Ltd, carried out an assessment process of domestic wind project developers and wind projects developed by them in Latvia. As a result of the assessment, several merchants with highly developed wind projects in their portfolios were approached.
Within the framework of this project, the turbines will be manufactured, supplied and assembled by Vestas, the world’s leading wind turbine manufacturer, and the construction of the connection, access roads, cabling, turbine foundations and assembly area will be performed by Merko statyba UAB, with project management being provided by Utilitas Wind. The provisional construction costs of the wind farm are estimated at approximately EUR 200 million.
The overall strategic objective of Latvenergo AS provides for the promotion of the competitiveness and growth of climate-neutral Latvia and an increase in the value of Latvenergo Group in the Baltic market, as well as beyond, through the development and provision of goods and services in the energy and related business value chains in a sustainable, innovative, and economically sound manner and by effectively managing strategically important resources and infrastructure for the development and security of the country.
TGS Baltic acted as legal advisor to Latvenergo and TRINITI acted as legal advisor to Utilitas Wind.
Latvenergo Group is the leader in renewable energy generation and one of the largest providers of energy supply services in the Baltic states. The Group consists of a group of commercial companies, with the parent company Latvenergo AS having the decisive influence. Latvenergo AS is a fully state-owned company and its shares are held by the Ministry of Economics of the Republic of Latvia. Latvenergo Group has a balanced and environmentally friendly energy generation portfolio. In 2023, the share of renewable electricity produced by the Group reached 73%. The strategy of Latvenergo Group provides for the leadership of RES in electricity generation, by supplementing the existing amount of electricity generated across the Baltic states with solar and wind power plants with a capacity of 2,300 MW by 2030.