EIB Boosts Latvia’s Grid Modernization with €200 Million Loan for Renewable Energy Integration

EIB Boosts Latvia’s Grid Modernization with €200 Million Loan for Renewable Energy Integration

(IN BRIEF) The European Investment Bank has approved a €200 million loan to Latvenergo AS to upgrade Latvia’s electricity distribution network, enhancing reliability for nearly 1.9 million customers while integrating digital innovations and renewable energy sources. Scheduled for completion by the end of 2026, the project supports Latvia’s National Energy and Climate Plan and will bolster the country’s energy security and sustainability, reflecting a long-standing partnership between the EIB and Latvenergo.

(PRESS RELEASE) LUXEMBOURG, 7-Mar-2025 — /EuropaWire/ — The European Investment Bank (EIB) has approved a €200 million loan to Latvian energy utility Latvenergo AS for a major upgrade of Latvia’s electricity distribution network. This financing is aimed at enhancing the efficiency and reliability of power supply for nearly 1.9 million customers, while also facilitating the integration of renewable energy sources and supporting climate action. The project, slated for completion by the end of 2026, will incorporate digital innovations to modernize the grid, thereby contributing to Latvia’s energy security and sustainability goals.

EIB Vice-President Thomas Östros noted that “modernising Latvia’s electricity-distribution network is important both for the climate and for energy security,” emphasizing that the project will bolster the reliability of power delivery and accelerate the shift towards clean energy. Latvenergo, which has benefited from a long-standing partnership with the EIB—now marking their seventh financing accord—will enjoy favorable loan terms, including flexible disbursements and extended duration, which are expected to attract further long-term investments and strengthen its green credentials.

Guntars Baļčūns, Member of the Management Board of Latvenergo, remarked, “We are investing to promote the energy sector’s transition to renewable resources and modernise our distribution network, making a significant contribution to the country’s economy.” This initiative is in line with Latvia’s National Energy and Climate Plan for 2021-2030 and the EIB’s Energy Lending Policy, reflecting a broader commitment to economic, social, and regional cohesion.

Background information  

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, high-impact investments outside the European Union, and the capital markets union.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.

All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.

High-quality, up-to-date photos of our headquarters for media use are available here.

Latvenergo

Latvenergo Group is one of the largest providers of energy supply services in the Baltic states, engaged in the generation and trade of electricity and thermal energy, and distribution of electricity. Since 1939, Latvenergo is the largest producer of renewable energy in the Baltics and one of the greenest electricity generators in Europe – approximately half of the electricity is generated in three large hydropower plants. They are complemented by modernized combined heat and power plants, where electricity is obtained from natural gas. The Group develops new green wind and solar energy generation capacities in Baltics and is also a leader in the field of electromobility services. All shares of Latvenergo AS are owned by the state and held by the Ministry of Economics of the Republic of Latvia.

Media Contact:

Kristiina Randmaa
k.randmaa@eib.org
+352 4379 – 72894

Press Office
press@eib.org
+352 43791

SOURCE: European Investment Bank