NIB supports Latvenergo’s investments with a EUR 230 million loan

NIB and the Latvian power utility company Latvenergo AS have agreed on a EUR 230 million loan to finance the company's investments in energy distribution networks and significantly increase renewable energy capacities.

With this 15-year loan agreement, Latvenergo will develop four solar farms with a combined capacity of over 300 MW. The new solar farms will be built across the country, with the largest constructed in Aizpute, western Latvia.

Additionally, the company will refurbish hydropower plants on the river Daugava, improving the plants' efficiency through reduced energy losses.

The loan will also finance investments in the updating of Latvia's electricity distribution network. Latvenergo will revamp substations and refurbish its existing electricity distribution network lines. Most of the network line refurbishment works will replace overhead lines with underground lines, further improving the security of supply in Latvia.

Under the programme, Latvenergo will install new smart meters to further digitalise their network and reduce energy losses from the current system.

"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," says André Küüsvek, NIB President & CEO.

"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," says Guntars Baļčūns, CFO of Latvenergo AS.

The company has set a strategy to accelerate the rollout of renewable energy sources, reaching up to 600 MW of solar and wind energy generation capacity by 2026. Latvenergo's current solar and wind production capacity is 106 MW. Investing in additional power generation facilities is in line with the company's objective to become a climate-neutral power producer by 2040.

Latvenergo AS is a state-owned power utility in Latvia. It is engaged in generating electricity and heat and trading both those resources, as well as natural gas. The electricity distribution is operated by its subsidiary company, Sadales tīkls AS, Latvia's largest distribution system operator.

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor's and Moody's.

For further information, please contact

Kaspars Pīlādzis, Senior Banker, Country Lead for Latvia, at +358 10 618 0391, [email protected]

Kersti Talving, Senior Banker, at +358 10 618 0245, [email protected]

Anita Algus, Communications, at +358 10 618 0524, [email protected]

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