Silina hopes new Energy Strategy will attract investors to Latvia

RIGA - The Energy Strategy adopted by the Cabinet of Ministers on Tuesday could attract additional investments to Latvia, so that the prices of energy resources in the country would decrease and their availability would be ensured, Prime Minister Evika Silina (New Unity) said on Wednesday after a meeting with President Edgars Rinkevics.

According to Silina, the Energy Strategy is a far-seeing step. In her opinion, it gives a clear vision of the kingdom's vision for energy to be independent, accessible, abundant and competitively priced.

Silina also pointed out that the Energy Strategy talks about different forms of energy and shows that solar and wind are the topics of the day. She stressed that it also gives entrepreneurs the opportunity to understand what the country's development vision is, whether they need to plan their investments and business in this area.

"We know that future data centers, artificial intelligence require a lot of energy consumption. It is important for Latvia to compete with other countries in this market," said Silina.

The president stressed that the need for such a strategy had been discussed with the Foreign Investors Council in Latvia, and several meetings had also been held at the Riga Castle. There have also been talks with Climate and Energy Minister Kaspars Melnis (Greens/Farmers) and meetings in the Saeima national economy, rural, environmental and regional policy committee.

"This is a document that will undoubtedly need to be fine-tuned in line with economic developments, given that the strategy covers the next 25 years. In my opinion, it is a good basis for the development of energy infrastructure and for negotiations with investors, because questions are often raised about the availability of energy resources and the energy strategy in the country," said the president.

As reported, the government on Tuesday supported Latvia's Energy Strategy until 2050, which will be assessed and updated every five years.

The strategy was developed by the Climate and Energy Ministry.

By July 1, the ministry will establish a cross-sectoral monitoring council to update policies set out in the strategy in line with the actual circumstances, as well as to develop and approve a regulatory development plan in accordance with the strategy.

By July 1, 2026 and annually thereafter, the Climate and Energy Ministry will draw up and submit to the Cabinet a report on progress toward meeting the targets set in the strategy and, if necessary, update the development plan. By July 1, 2030 and every five years thereafter, the ministry will assess and, if necessary, update the strategy in the light of global and local factors in the energy industry and the national economy.

As reported, the strategy envisages that by 2050, Latvia will be a regional leader in energy prices, have high energy self-sufficiency and infrastructure that is used efficiently and sustainably.

Wind and solar power will dominate electricity production, as well as hydropower, which is already the backbone of electricity production in Latvia. Biomass and biogas will maintain a steady system flexibility. The use of green fuels and hydrogen is also expected to be integrated in industry.

By 2050, Latvia will generate 25 terawatt hours (TWh) of electricity annually, which is almost four times more than in 2024. Latvia currently generates 6.6 TWh of electricity annually. According to the strategy, electricity consumption will also increase substantially, from 7.7TWh in 2024 to 19 TWh in 2050.

Renewable energy is expected to generate 7,500 megawatts (MW) of electricity by 2050. This includes 1,000 MW generated by offshore wind farms, 2,000 MW by solar parks, and 4,500 MW by onshore wind farms.

Total private and public sector investments by 2050 are projected at EUR 34.4 billion.

Of the total planned investment, 34 percent would go into making transport greener, 29 percent in new generation capacity, 13 percent in technology and energy efficiency in buildings, 9 percent in the development of energy-intensive industries, 7 percent in electrification of heat, and 4 percent in each energy transformation and biogas development.

The strategy says that in 2023, Latvia's electricity was generated from four main sources: thermal power plants, hydropower plants, onshore wind power farms, and solar power plants. In the future, electricity generated by thermal power and hydropower plants will remain largely unchanged - 2.6 TWh of electricity generated annually by thermal power plants and 3.1 TWh by hydropower plants.

The Climate and Energy Ministry forecasts that by 2050, thermal power plants will gradually become more sustainable as natural gas will be gradually replaced by synthetic methane and biogas. New onshore and offshore wind farms and solar power plants will be built, while new hydropower plants are not being planned due to high construction costs.