Almost 1 billion is planned in Latvia. Euro investment in the park

Photo by Algimantas Kalvaiis.

The Latvian wind parks (Latvijas veja parki) are jointly owned by the state capital company Latvenergo and Latvijas valsts mei, which invested about 980 million. EUR, 2.4 TWh of electricity can be produced, which is more than 30% of electricity consumed in Latvia last year. However, the first kWh produced by Latvian wind turbines will have to wait a few years.

Ilvija Boreiko, the chairman of the newly established joint board of mons, says that the most important thing at the moment is to carry out various investigations. For example, to measure the strength of the wind at specific potential wind farm sites, to study the populations of birds and echinoderms and to find the most attractive and profitable wind farm sites. Only then will it be possible to start the actual construction of the wind farm.

The two largest state-owned companies have committed themselves to a historic step not only in the history of each of them, but also in the history of Latvia as a whole, because this is the most important event in the Latvian energy sector after the implementation of the Kegum hydroelectric project, says Martinas akst, Chairman of the Board of Latvenerg, where he quotes

According to him, the first results of our Latvian wind farms will be visible in two or three years, but the project may be fully completed in another five years.

this investment will not be supported by the state, the project will be commercial, so both state-run companies will be able to make a profit and, as calculated, pay the state 50 million. EUR dividend per year.

It is expected that about 100-120 wind turbines with a total capacity of 800 MW will be built during the implementation of the project. Project inputs include not only scientific research, but also infrastructure (transmission lines, roads, substations).

Business plan

The wind farm project is not related to state money, therefore, as in other business projects, part of the money is equity, and part may be a loan, as there is potential interest from the lender, says Kasparas Cikmaas, a member of the board of Latvenerg.

He points out that currently the share capital of our Latvian wind farms is 2 million. EUR, of which 1.6 million Eur is Latvenergo's naas, and 0.4 mln. Eur Latvijas valsts mei naas.

When specific potential wind farm locations are known, the shareholders will provide financing (i.e. equity capital or lending) for the next stage, K. Cikmaas describes the possible wind farm financing model.

He adds that investing money in wind farms is an investment in the future, because in this way, society will receive both additional electricity and dividends from the economic activities of the country.

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