Energy The issues have become topical for all of us – the events of recent months in the world have exacerbated the debate about Latvia’s energy independence and ways to approach it. For solar and wind farm developers, Latvia is a land of opportunity, and green energy is also an untapped potential for Latvia, as it is high time for our hydroelectric power plants (HPPs) and thermal power plants (TEC) to supplement the portfolio of generated capacity with renewable energy – we start with 30, 50 MW solar energy parks and move towards 100 and 500 MV.
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Power to be compensated and stereotypes to be broken
A stereotype has emerged in Latvia that “we are not a windy or sunny country enough” to be a suitable place for solar and wind farms. The current data support this view – only up to 10 MW of industrial solar park capacity has been installed in Latvia, which is less than 0.05% of the total electricity generated. Also in Latvia, only 78 MW of industrial-scale wind power generation is currently connected to the grid, which provides only about 2.5% of the total production in Latvia.
However, in our neighboring countries Estonia and Lithuania, we can already talk about hundreds of MW of renewable electricity. This shows that Latvia also has the potential for renewable energy – we are here Baltic on the east coast of the sea, where the prevailing winds are stronger than in the more built-up wind farms Sweden Coast. The data also show that solar radiation in Latvia is as high as in Denmark, a country that is a leader in green technology.
Latvia’s electricity shortage is currently around 30%, depending on how rainy the year has been. This can be explained by the peculiarity of our HPPs – their reservoirs are fluid and can only accumulate generating resources for about a week of consumption. Therefore, it happens that if there is not enough water in the summer, we are forced to operate the CHP in condensing mode, provided that the market price allows them to operate. It also raises electricity prices.
That is why we need to find solutions to this electricity shortage. I believe that the only real solution to ensure the energy independence of Latvia and the Baltics is renewable electricity.
Danish experience and knowledge
Latvia is gradually beginning to realize the potential of solar energy. The first steps to make solar panels on roofs more accessible to households are now being taken. However, it is time to accelerate the green transition and develop more powerful energy plants – industrial-scale solar parks. That is why European Energy, an experienced developer of solar and wind farms with roots in Denmark, is now in Latvia.
Its first project is planned to have a capacity of 110 MW, so it will be one of the largest solar panel parks in Latvia to date – it will provide approximately 40 to 50 thousand households with annual electricity consumption. The park is planned to be connected to the electricity grid by 2024. The company already has a total of more than 1 GW development plan in Latvia, which includes both solar and wind energy projects.
The story of coexistence
In Denmark, the capacity of industrial solar parks is measured in thousands of megawatts. At the same time, it should be noted that this northern land is the busiest in agriculture in Europe, so the two lines of action can be successfully combined: by converting agricultural land into a solar park, farmers can mow the grass or graze livestock.
Solar parks also help to address the biodiversity problem caused by the intensive use of pesticides and fertilizers. They are surrounded by hedges and wildflowers, creating habitat transitions. As we know, there are so many undeveloped hectares in Latvia with bushes. It would be a good time to make them more valuable. Therefore, we will carry out an environmental impact assessment for all our solar energy parks, although this is not currently a mandatory requirement for developers.
A dream of an energy policy that everyone can understand
Denmark also stands out with its systematic approach to energy policy. This is exactly what we have had the biggest problem in Latvia – spontaneous decisions on energy strategy and policy. Denmark has a clear strategy in place for the administrative management of the sector. Similarly, Lithuanians have learned to put it in two to three pages to present it clearly to the public and all parties involved. To Lithuania is the goal they go for and the vision with the action plan.
European Energy operates in 24 countries on four continents, helping it maintain a vision of a successful and efficient energy policy for both local consumers and electricity producers. We continue to inform municipalities and communities about the benefits of renewable energy for society. We are an investor who respects European values, creates jobs, pays taxes and contributes to the prosperity of the region.
Elsewhere, municipalities themselves call on project developers to develop projects right next to them. In Latvia, on the other hand, we run into spatial planning documents that say it is forbidden to build solar parks larger than 20 kW. Fortunately, public thinking is beginning to change: renewable energy is no longer taboo in public policy, and appropriate support mechanisms are gradually being developed.
Zigzags towards renewable energy
There have been a lot of emotions in Latvia when talking about and about the introduction of renewable energy, which is understandable in every field, when faced with something new and unknown. Also, market players may not have been successful enough in the implementation phase. Maybe so far has not been the right time? Until a few years ago, these wind and solar technologies could not be marketed without aid. The price level was noticeably higher and the difference had to be supported in some way. Over time, different models of how to do this have emerged in Latvia – all or some industrial consumers or residents pay with one or another tax. Thus, from the double tariff model, we came to the feed-in tariff tied to the price of gas, hundreds of issued developer licenses, but very few projects. These and other costs of political and economic excess were shouldered by the consumer, and it was only natural that the public was ‘smashed’. Until we finally got to the second ditch – all renewable energy projects were stopped.
With the increasing number of solar and wind energy production parks in the world, today the technology has developed to such an extent that we can safely start to fit our production in the current market conditions without any subsidies. In 20 years, we have come to the conclusion that these renewable solutions are competitive, and this is the best way to solve the energy independence of the Baltics and Latvia. For example, the auction held in Estonia in June shows that renewable energy projects, already in the right places and finding the right technological solutions, are already viable at the level of electricity prices (20-30 euros per MWh), so why not the same for Latvia?
Energy independent Latvia? Top gear!
I have been in the energy sector since 2003 – a time when the Baltic States as a whole were largely energy independent, despite operating in a unified energy system with Russia and Belarus. From a European energy perspective, the Baltics worked like an island – we were not connected to the European grid, and we had the Ignalina Nuclear Power Plant (NPP) with a significant capacity of 3,000 MW. Following the closure of Ignalina in 2009, there was a natural net shortfall in generation to cover consumption. As a result, the Baltics became increasingly dependent on external energy resources. What do we look like now? Lithuania has not been able to maintain its generation capacity due to geopolitical conditions; in Estonia, electricity is still generated primarily from CHP plants operating on environmentally friendly oil shale. Latvia, on the other hand, has a relatively good generation portfolio consisting of HPPs and CHPs.
We do not have to destroy the existing energy system that has developed in Latvia over time, on the contrary – we need to think more widely, strive for scope and add more solar and wind energy to existing capacities. Then we will have both the so-called variable renewable energy sources and those that balance the fluctuations of solar and wind energy. Existing stations in Latvia are the most suitable tool for this. In addition, we have the necessary capacity for transmission networks to add solar and wind farms – a great foundation on which to build a greener tomorrow today.
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