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AS "Latvenergo" and the U.S. Department of Energy's National Renewable Energy Laboratory (NREL) have signed a research and development agreement to implement an energy transformation and industrial research project, which will involve modeling several investment scenarios for Latvenergo. The results of this study will primarily be used in the development of Latvenergo's investment strategy and are crucial for achieving Latvia's ambitious goal of reaching net-zero greenhouse gas emissions by 2050. The study is scheduled to begin in the fourth quarter of 2024 and will last for 15 months.
On September 24, a Latvian delegation led by Latvia's Minister of Economy, Viktors Valainis, visited the extensive laboratory complex in Denver, USA, and met with the institute's leadership. Latvenergo was represented by the company’s Chairman of the Board and CEO, Mārtiņš Čakste.
The goal of the study is to model various investment scenarios relevant to the energy sector, focusing mainly on a combination of energy generation and storage assets optimized for market competitiveness, decarbonization by optimizing investments to achieve emission reductions, and investments in the production of green fuel for both domestic consumption and export.
Latvian Minister of Economy, Viktors Valainis, stated: "Currently, the importance and scale of investments in renewable energy are rapidly growing worldwide, including in Latvia. New solar and wind parks are being developed, and the volume of electricity generated is increasing, necessitating the search for the most economically viable solutions for renewable energy production, transformation, transmission, and storage. This is a complex process where it is crucial to make forecasts, plan actions, and set goals using the most advanced methods. NREL's expertise is among the best in the world, and it could provide an objective and comprehensive analysis of the most optimal energy investment scenarios for Latvia."
Latvia is one of the greenest countries in Europe in terms of CO2 emissions per kilowatt-hour (kWh) of electricity produced, but it has one of the lowest shares of wind energy in Europe. Latvia’s highly developed hydroelectric power capacity also supplies large amounts of clean electricity to both Lithuania and Estonia. However, Latvia's energy balance remains seasonal. Neighboring Nordic countries produce significantly more electricity at far more competitive prices. Moreover, while Latvia's gross domestic product (GDP) has steadily grown over the past decade, electricity consumption in the country has stagnated. To increase Latvenergo’s competitiveness and supply the country's economy with environmentally friendly and low-cost energy, new capacities for producing clean energy need to be developed.
AS "Latvenergo" Chairman of the Board, Mārtiņš Čakste, on international cooperation: "The evolution of the energy sector with a sharp turn towards renewable energy resources is a critical challenge for many countries as it requires radical changes in a limited time. Latvia's starting position is good, as we have modern and efficient production facilities, though not enough of them. We are ready to move forward dynamically, and the choice of a partner like NREL is a great success and also a responsibility. I believe that our collaboration will bear fruit for both Latvenergo and Latvia, as the research has brought together professionals who know how to turn theory into a commercial product."
NREL is one of the most prestigious research institutions in the world for the use, modeling, and commercialization of renewable resources. Latvenergo became acquainted with the potential of the American laboratory a year ago, which has now resulted in systematic cooperation. Currently, Latvian scientist Pēteris Stradiņš is working at NREL, and his consultations and experience have stimulated cooperation opportunities for the Latvian energy company with this leading renewable energy laboratory.
Latvenergo's goal is to develop additional renewable energy production capacities of 2.3 GW across the Baltics. In this 85th anniversary year of Latvenergo, the construction of solar and wind power plants is progressing intensively, with the company planning to expand its renewable energy portfolio by 130 MW this year and by 600 MW by 2026.
Latvenergo Group is one of the largest energy supply service providers in the Baltic States, involved in electricity and heat production and trading, as well as electricity distribution. Since 1939, Latvenergo has been the largest producer of renewable energy in the Baltics and one of the greenest electricity producers in Europe—about half of its electricity is generated at three large hydroelectric power plants. These are complemented by modernized cogeneration thermal power plants, where electricity is produced from natural gas. The group is developing new green energy production capacities in wind and solar power across the Baltics, and it is also a leader in e-mobility services. All AS "Latvenergo" shares are owned by the Latvian state.