Electricity consumption in Latvia to continue to grow this year - AJ Power

RIGA - Consumption of electricity in Latvia will continue to grow this year, Roberts Samtins, head of the power company AJ Power group, told LETA in an interview.

He stressed that the cold winter in January and February resulted in a significant increase in energy consumption, as well as the addition of significant capacities in heating generation, which use electricity, so this year will be an exceptional one in the statistics.

Samtins reminded that last year electricity consumption grew by slightly more than 3 percent compared to 2024, which is higher than the growth of Latvia's gross domestic product.

"Previously, we experienced a significant drop in electricity consumption in 2022 and subsequently in 2023. This was due to the energy crisis and very high prices, but also because there was a solar boom and much of the electricity generated by the sun was used for self-consumption and did not enter the grid at all. In particular, the electricity consumption statistics record the amount that consumers purchase from the grid, as it is much more difficult to accurately record the amount of self-consumption. Last year, however, we returned to the 2019 consumption level," Samtins said.

He admitted that both heating and transport have contributed to the increase in electricity consumption. Battery energy storage systems (BESS) also contribute to electricity consumption, as they initially consume electricity and then transfer it to the grid.

"Electricity consumption growth will continue and this is good news overall, as it means less pressure on distribution network tariffs," added Samtins.

He pointed out that the electrification of transport was continuing. The other direction is heating generation, as households have installed many more heating pumps and industrial solutions have been introduced, for example, Rigas Siltums has built an electrode water-heating boiler with a capacity of 49 megawatts.

"I think electricity will also play an increasingly important role in district heating, because it is cheaper to store heat than to store electricity. Therefore, heating can be generated when electricity prices are lower per day and ensure a steady supply of heating. This has a very high potential and has a positive impact on the energy system as a whole," said the CEO of AJ Power.

Asked whether this could facilitate the entry of new electricity traders in Latvia, Samtins admitted that it cannot be ruled out, but the Latvian market is relatively small and the number of traders is sufficient at the moment.

According to Firmas.lv, the largest companies in AJ Power Holding are AJ Power, AJ Power Gas and AJ Power Recycling.

AJ Power had a turnover of EUR 55.598 million in 2024 and a profit of EUR 1.854 million. AJ Power Gas had a turnover of EUR 28.2 million and a profit of EUR 69,656, while AJ Power Recycling had a turnover of EUR 5.144 million in 2024 and a profit of EUR 417,800. The companies' financial results for 2025 have not yet been made public.

AJ Power Holding is owned by Ladetajs (34 percent), AHF (26 percent), Anete Freiberga-Samtina (25 percent) and DUK Power (15 percent).