On July 22 this year, a significant step was taken to ensure Latvia’s energy independence – SIA “Latvijas vēja parki”, a joint venture of AS “Latvenergo” and AS “Latvijas valsts meži”, was founded.
SIA “Latvijas vēja parki” is a national company whose activity aims to increase energy independence, increase long-term renewable energy and value in the interests of all Latvian residents and businesses. The joint venture is the first to provide a compensatory mechanism for local communities. The task of the joint venture is to build wind parks with a total capacity of at least 800 megawatts (MW) by 2030, which will ensure a significant increase in renewable electricity generation capacity and contribute to Latvia’s progress towards energy independence, security and climate neutrality, while at the same time reducing GHG emissions, preserving natural diversity and developing a circular economy.
The establishment of the joint venture takes place at a time when Latvia and the world are facing very serious geopolitical, energy independence and security challenges, as well as climate changes and the consequences thereof.
Prime Minister Krišjānis Kariņš emphasises: “Today is an important day in strengthening Latvia’s energy independence – we celebrate the creation of the joint venture “Latvijas Vēja parki” by “Latvenergo” and “Latvijas Valsts meži”, which is the answer of the state in the medium term to the question of reducing Latvia’s dependency on fossil energy resources, which was so far imported from Russia. In particular, Latvia will be able to produce the necessary amount of electricity from renewable energy sources, with less use of imported fossil energy resources not tomorrow, but over several years. This means predictable electricity prices and availability of resources for the population and businesses, as well as strengthening the competitiveness of our economy. I would like to thank the management of Latvenergo and Latvijas Valsts meži for their ability to find a common language in order to implement a project important to Latvia’s economy and society. I would also like to thank the Minister of Economics Ilze Indriksone and the Minister of Economics Kaspars Gerhards for their work that shows once again – by bringing together different ideas and political beliefs, we, in the government, are able to agree and find a common language to strengthen our country and drive Latvia’s development in the right direction.”
The purpose of the joint venture is to maximise the benefit for society by exploiting synergies from the pooling of assets, resources and competences of two state-owned strategic capital companies. The Minister of Economics Ilze Indriksone indicates: “In order to strengthen Latvia’s energy independence it is essential to implement large-scale strategic wind parks to increase local generation capacities, make a significant contribution to the stabilisation of the electricity price, which will provide the Latvian society and businesses with competitive electricity costs in the long term. In addition, the project of this scale will also provide significant investment in the Latvian economy, as well as foster the economic activity of the surrounding regions. The location of the project in Latvia will also boost long-term demand for servicing high-tech industries in Latvia.”
The joint venture SIA “Latvijas vēja parki” is a combination of experiences, possibilities and knowledge of two Latvian capital companies – AS “Latvenergo” and AS “Latvijas valsts meži” – for the general benefit of the country, society, businesses and the region. The values pillars of the national company are a cleaner and greener future, respect and synergy, and for the local population – a share of earnings.
SIA “Latvijas vēja parki” will develop several high-capacity wind parks in Latvia with a total capacity of at least 800 MW. Wind parks and the infrastructure needed for them will be designed, constructed and operated in the territory owned by the state, which is managed by AS “Latvijas valsts meži”, as well as in the territory owned by AS “Latvijas valsts meži”, where the building rights have been acquired by the joint venture. The share capital of the joint venture at the time of its establishment is 2 million euro, 80% of the capital shares of the joint venture are owned by AS “Latvenergo” and 20% – by AS “Latvijas valsts meži”. The temporary management of the company consists of Ilvija Boreiko, Chairman of the Board SIA “Latvijas vēja parki”, and Zane Norenberga, Member of the Board of SIA “Latvijas vēja parki”.
The joint venture has a very ambitious goal of ensuring the achievement of the energy independence and climate neutrality targets by the Latvian state by 2030, in line with the National Energy and Climate Plan.
The energy code for Latvia and Latvenergo can be found in renewable energy. Like in 1939, Kegums HPP opened a bright page, and we are now at the beginning of a new path – SIA “Latvijas vēja parki” is like a new start, creating a high quality of industry and making the best use of our national resources for the common benefit, independence and safety,” the Chairman of the Management Board of AS “Latvenergo” Mārtiņš Čakste says.
Based on the assessment of independent, competent experts and using the latest technologies, the deployment of wind turbines is possible and economically beneficial almost all over Latvia. The Minister of Agriculture Kaspars Gerhards believes: “The establishment of the joint venture SIA “Latvijas vēja parki” is an important event that will make it possible to take a significant step towards building our country’s energy independence. This project also marks a new step in the development of the Latvian economy – a new type of cooperation between the leading state capital companies, where a new added value will be created using the knowledge and experience of each of the capital companies. As the country’s forest land occupies more than half of Latvia’s territory, it will be possible to further build wind parks away from populated areas while stimulating economic activity in regions.”
Wind parks are designed to be built in areas with as little impact as possible on landscape, local population and the environment.
The state has entrusted us, Latvijas valsts meži, with providing most of the largest and most valuable resource of Latvia – land, so we are increasingly introducing the most efficient and innovative ways to manage it in a sustainable manner and at the same time to create as much value as possible for the entire Latvian society. Today, the knowledge and experience of the team of two strong Latvian companies opens up new doors for the smart management of national resources – clean energy production,” the Chairman of the Management Board of AS “Latvijas valsts meži” Jānis Lapiņš emphasises.
SIA “Latvijas vēja parki” is the first developer of wind parks, which will offer municipalities benefits from wind energy. Sharing wind-energy trading revenues provides for compensatory payments to local governments, increasing the welfare of local communities.
Our prerequisite for this project is transparency – we are a Latvian national company and are interested in a successful long-term cooperation. It is a respectful relationship with the local community and with the environment, which fully reflects the strategic progress of Latvenergo – using its local resources in the best way,” the Member of the Management Board of AS “Latvenergo” Kaspars Cikmačs says.
“Wind energy produced by the joint venture’s wind parks will ensure the demand of society for clean, reliable and affordable energy. Our main values are respect for the environment and landscape, as well as ensuring a greener future for future generations, because we are a national company and we are here to stay! Construction of high-capacity wind parks in a safe and socially responsible way, with a strong focus on the co-existence of people, the environment and energy, is the backbone of Latvia’s energy independence and economic sustainability,” the Chairman of the Management Board of SIA “Latvijas vēja parki” Ilvija Boreiko says.
The planned capacity of SIA “Latvijas vēja parki” will be an invaluable investment in the total Latvian electricity generation portfolio. By promoting renewable energy production and building high-capacity wind parks will boost Latvia’s energy independence, introduce emission-free energy systems, reduce the use of fossil energy sources and improve the electricity import – export balance, which will also contribute to the stability of electricity prices in the region. High-capacity onshore wind parks of SIA “Latvijas vēja parki” will not only produce electricity, but will also promote the development of innovative technologies and promote changes in a number of areas of the economy – energy, industry, agriculture and transport.