A promise like that from the main energy company in Lithuania and the biggest energy company in the Baltic States could be fulfilled no sooner than 2025, when the first wind turbine and solar panel parks come online in Latvia. Ignitis Grupe has a very ambitious goal – developing the region into an exporter of green energy.
The company aims to sell its goods manufactured here to German and other countries of Central Europe, as there is great demand for energy there, but few ways to generate it in a green way. The reason is simple – there isn’t much free land and coastal waters there. This is why Ignitis sees the potential of Latvia, Estonia and Finland in this sector, more than their home country, which is geographically the closest one to Central Europe.
This way Latvia can generate at least three times more green energy than Lithuania.
This could contribute a great deal to the country’s welfare. We – Baltic States and Finland – could become a second Norway, Ignitis tempts. Their wealth stems from «black gold», we, on the other hand, will generate ours from wind and solar panel parks, hydroelectric dams and hydrogen-fuelled «green oil».
Ignitis, specifically Ignitis Renewables, which operates with energy production, has plans to use investments of EUR 700 million to develop wind and solar panel parks in Latvia. The company also promises to become one of Latvia’s biggest foreign investors by the year 2030. However, planned and already performed purchases of territories needed for the project will be «reported at a later date».
Ignitis Group board chairman Darius Maikštėnas. Photo: Ignitis publicity photoTo convince Latvian residents of their plans, Ignitis Group board chairman Darius Maikštėnas was «called in for interrogation». At a press-conference he had a tough time to battle Latvian journalists’ slightly demonstrative scepticism about the project and the honesty of the neighbours’ generosity.
Ignitis considers Latvia on of its «home markets». The company already supplies electricity to Tet [Lattelecom brand], which sells it to households and local businesses. Ignitis Latvija composes an electric car recharging network. Maikštėnas believes Latvia’s business environment, bureaucracy and taxes are fit for the concern’s investments. The situation in Lithuania and Estonia is/was similar, and there are hopes that, as the project move forward, the government will look in the direction of development.
Ignitis Renewables has an office in Riga. The company is looking for a manager for its branch in Latvia. At the end of last year it was reported that Ignitis Renewables decided to purchase an unnamed solar panel park developer, promising investments of EUR 213 million to continue the project’s development and to commence energy generation in 2025.
Invasions by vital and powerful Lithuanian business into our country often causes an inferiority complex and an understandable desire to «protect economic sovereignty». BNN dared to ask Maikštėnas a rhetorical question [which other media representatives had on the tips of their tongues]:
could Ignitis become an «energy Maxima» of sorts, pumping «money out of Latvia» using cheaper goods?
He was also asked: which part of the aforementioned EUR 700 million will go to Latvian companies, specialists and workers? Won’t it end up so that every screw, every screwdriver and container for construction waste be brought from Lithuania?
Ignitis manager said tenders remain an unclear topic. He did say there will be procurements and all those interested will be able to participate. No matter what people have to say about Maxima brand, the price of electricity will down in Latvia.
Still, there is a prejudice of sorts in Latvia about «green energy». This is largely thanks to the mess with the mandatory procurement component and small hydroelectric dams that have done a number on Latvia’s rivers. This has basically solidified the term green energy together with the word expensive. This is why BNN asked Maikštėnas how and whether it is even possible to change our people’s beliefs.
He said the situation was similar in Lithuania – the only thing that can convince people is lower electricity bills.
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Ignitis management meets in the Investors Club with the company’s investors in Latvia. Photo: Paula Čurkste/LETAWhat is Ignitis Group JSC? Previously the company was known as Lietuvos Energija and was completely owned by Lithuanian state. There are three hundred Ignitis shareholders in Latvia – considering this country’s residents’ generally cautious attitude towards investments in securities, this is a lot. This is why Maikštėnas reported not only to Latvian media representatives but local business investors at the press-conference held in Riga on Tuesday, the 21st of March.
Last year Ignitis Group gained nearly EUR 470 million in profits. This allows the company to attract approximately EUR 2 billion for future development. By investing EUR 700 million, the company plans to increase its «renewable energy resource project portfolio» in Latvia from 1.3 GW in 2023 to 2.5 GW in 2030.
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