The European Investment Bank (EIB) has provided Latvia’s state energy utility Latvenergo AS with a €200 million loan to upgrade the nation’s grid for electricity distribution. The investment is designed to modernize and make the grid more efficient so it can supply clean energy and respond to Latvia’s rising renewable energy demands.
Digital Upgrades and Reliability Improvement
Scheduled for delivery at the end of 2026, the project EIB is financing will connect sophisticated digital functions into Latvia’s energy grid. These enhancements will enhance the reliability of electricity supply overall for almost 1.9 million customers. The upgraded power grid will assist Latvia in achieving EU climate goals by helping encourage renewable energy and reduce carbon emissions.
Aiding Latvia’s Climate Objectives
Guntars Baļčūns, a Member of the Management Board of Latvenergo AS, stated that the company is investing in the transition to renewable energy and the modernization of the distribution network to make a significant contribution to the country’s economy.
He also mentioned that these goals require substantial financial resources, and the EIB offers access to competitive funding that supports both business and climate objectives. Baļčūns highlighted that the company’s successful cooperation with the EIB has lasted for over 25 years, and this loan will enable them to use the resources invested in solar and wind parks more efficiently.
Long-Term Support and Green Financing
The EIB funding provides good terms for Latvenergo, including flexible payments and an extended repayment period with market options. The assistance will also attract additional long-term investments and solidify Latvenergo’s dedication to green energy projects. The credit facility is also the seventh collaboration between Latvenergo and the EIB, highlighting their robust and consistent partnership.
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Compliance with Latvia’s Energy and Climate Plan
The financing is in line with Latvia’s National Energy and Climate Plan 2021-2030 and the EIB’s Energy Lending Policy.It will not only support climate action, but also economic, social, and regional cohesion, ensuring that the energy transition benefits reach all parts of the country.