Translated using ChatGPT service.
AS "Latvenergo" has acquired 100% of the "Utilitas Wind" project "Telšiai," which will enable the commencement of wind energy production with a capacity of 124 megawatts (MW) by the first quarter of 2026. Until the project's completion, construction work will be managed by Utilitas Wind. The project involves the installation of 20 Vestas 6.2MW wind turbines, providing more than 125,000 households with their annual electricity consumption. The implementation of this project is significant for strengthening the competitive position in the Lithuanian market and lowering electricity prices for customers in the Baltic region. This deal represents a crucial step in Latvenergo's strategy.
For dynamic and rapid progress towards the goals set in Latvenergo's strategy, the company needs to develop a diversified portfolio of renewable energy sources (RES) across its home market—Latvia, Lithuania, and Estonia—and expand geographically beyond these areas.
"I am pleased with the conclusion of this international deal at this time. The project is not only very ambitious in terms of the capacity of the wind park but also provides us with an advantage in starting commercial operations. In less than 24 months, we will begin operating modern and efficient green energy equipment that will supply our well-connected home market. I thank the Latvenergo team, the professionals from Utilitas, and our shareholder—the Ministry of Economics—for their support. By promoting energy independence and greening electricity production, Lithuania is implementing a very active RES development policy, and we are pleased to be part of this policy," emphasized AS "Latvenergo" Chairman of the Board, Mārtiņš Čakste.
Strong regional deals and export growth are vital for the Latvian economy. This deal is an excellent example of how free movement of capital benefits the Latvian and Baltic economies. The Latvian company will earn revenue from producing the necessary electricity for the region and reducing the Baltic states' energy dependence on external suppliers. Additionally, the entire Baltic region needs to build enough new green energy capacity soon to ensure our energy systems' uninterrupted operation after the planned disconnection from the Russian BRELL ring early next year," stressed Minister of Economics Viktors Valainis.
In recent years, Latvenergo has significantly expanded its business in Lithuania, and currently, Elektrum Lietuva is one of the leading electricity trading companies in Lithuania. In 2023, 30% of the electricity sold to Latvenergo clients was sold to clients in Lithuania, marking a 60% increase over the year. The number of Elektrum clients in Lithuania exceeds 180,000, an increase of 50,000 from 2022.
“We are very pleased to start cooperation with “Latvenergo” on this project to begin new significant wind power production. We have already started construction work and plan to have the wind farm ready for electricity production by the first quarter of 2026. The need for new RES capacities is significant throughout the region. Wind energy has great potential in the Baltic region and is equally important for achieving climate goals and ensuring energy supply security,” said “Utilitas Wind” CEO Rene Tammist.
At the end of 2023, AS "Latvenergo," together with consultant SIA "PricewaterhouseCoopers," conducted an evaluation process of domestic wind project developers and their wind projects in Latvia. As a result of the evaluation, several companies with high-development wind projects in their portfolios were approached.
In this project, the production, delivery, and installation of turbines will be carried out by the world’s leading wind turbine manufacturer Vestas, and the construction of connections, access roads, cable networks, turbine foundations, and assembly areas will be handled by UAB Merko statyba, while project management will be provided by Utilitas Wind. The expected construction costs of the wind park are approximately EUR 200 million.
AS "Latvenergo" has a general strategic goal to promote the competitiveness and growth of a climate-neutral Latvia and increase the value of the Latvenergo group in the Baltic home market and beyond, sustainably, innovatively, and economically developing and providing goods and services in energy and related business value chains, and efficiently managing resources and infrastructure strategically significant for state development and security.
“TGS Baltic” acted as the legal advisor to “Latvenergo,” while “TRINITI” was the legal advisor to “Utilitas Wind.”
Latvenergo group is the leading renewable energy producer and one of the largest energy service providers in the Baltic states. The group consists of a set of commercial companies where the parent company AS “Latvenergo” has a decisive influence. All shares of AS “Latvenergo” are owned by the state, and the shareholder is the Ministry of Economics of the Republic of Latvia. Latvenergo group has a balanced and environmentally friendly energy production portfolio. In 2023, the share of renewable electricity in the group reached 73%. Latvenergo's strategy foresees leadership in RES electricity production, aiming to add 2,300 MW of solar and wind power plants across the Baltics by 2030.