Consortium expresses interest in gas-fired power plant

RIGA - A.G. Group is interested in building a new 500 megawatt gas-fired power station in Latvia using private investments, said the company’s chairman, Alex Goldman, speaking with business daily Dienas Bizness. The company is interested in investing in the construction of a power station in cooperation with the Russian gas company Gazprom, which has previously expressed interest in becoming involved in the energy generation sector in the region.

“The power station could be located in any of the Baltic States; that is an internal matter for those countries. We are only interested in the technical implementation possibilities of the project,” stressed Goldman, adding that the necessary financial resources were already in place in a fund belonging to the company after being contributed to by companies and individuals from Belgium, the Netherlands, Luxembourg and the U.S. who operate in the energy and financial sectors.

A.G. Group have not previously been involved in tenders for the construction of energy projects in the Baltic States, as the company considers the Baltic market to be relatively new. The company operates elsewhere in the European Union, and in the Asian, South American and African markets; however, it is currently most active in Russia and Uzbekistan.

Latvia’s electric utility Latvenergo representative Andris Siksnis indicated that an energy deficit of 400 to 600 megawatts existed in Latvia during the winter months, which would be reduced to only 200 megawatts when the newly renovated TEC-2 station is put into use, as aging parts at the plant would then be switched off. Siksnis indicated that it was therefore in Latvia’s interests to increase its own production, despite the country’s increasing integration in the Nordic energy market.
This project, however, would further increase Latvia’s already excessive dependence on energy supplies from Russia, at a time when Latvia’s Baltic neighbors are working to disentangle themselves from Russia’s energy dominance in the region.

Lithuania is planning an electric power connection with Sweden, and the construction of a new liquefied gas terminal on its coast, and Estonia will be adding a second power cable to Finland, among various additional energy projects.