The recent years were full of challenges and shocks for the energy sector. However, 2023 can be called a turning point towards the country’s energy independence and expansion of its energy resource portfolio. The year also proved to be a stress test for Latvia’s critical energy infrastructure, comments Sadales tīkls JSC board chairman Sandis Jansons.
Solar energy generation initially developed more rapidly directly in the distribution system – until the end of 2023, as previously predicted. The overall power output of power plants and micro-generators connected to Sadales tīkls exceeds 300 MW. Under appropriate weather conditions it can generate 30-40% of consumption volumes at specific times, promoting Latvia’s energy independence and green energy generation. The total number of solar power plants connected to the system reached 700 by the end of the year. The number of micro generators reached 19 000, Jansons continued.
“2023 showed how important to enhance the security of power supply infrastructure. There were several natural disasters this year – floods in January, a storm in October and intense snowfall in December. We successfully overcame all of them. We even assisted our Estonian neighbours in dealing with the aftermath of the last two.”
Jansons said that five years ago Latvian residents would have had to deal with power outages in the kind of snowfall experienced this December. “This year, however, thanks to existing medium-voltage cabling programs and preventative traverse cleaning, the power supply disruption affected a relatively small number of customers, with no single power outage for customers exceeding 24 hours.”
“This is also proof that the power network maintenance strategy – establishment of a Repair and construction Department – was the right choice. We have our own, always available labour force and a fleet of specialised maintenance vehicles. This lets us immediately respond to various complex incidents. The outsourcing approach chosen in Estonia means more complex work planning, longer response times. There, 14 000 households were left without electricity due to the December disaster, and in some cases electricity was not restored for as long as six days.”
Jansons reminded that the increase of power supply tariffs caused many heated discussions last year. However, this and the new distribution tariff structure have a direct relationship with how strong and secure the electricity grid can be developed in the future. Historically, tariffs were primarily based on consumption, but the cost of maintaining and developing the infrastructure does not change depending on how many kilowatt hours are transported in one direction or the other through the network.
Independence, security and green energy – three keywords that will dictate the sector’s development in 2024.
Ensuring a safe, high-quality and stable electricity supply service is and will be the priority task of Sadales tīkls JSC. The total length of our electricity grid is 92 000 kilometers, and its constant modernization is one of the most important investment directions, where we plan to invest 56% of the total investment annually, or an average of EUR 74 million per year.
The board chairman of Sadales tīkls explains that investments so far have allowed the company to ensure 62% of the power grid is developed using isolated solutions (cables and hanging cables).
Modernisation of the power grid in 2024 will be an important priority. Financing from the European Recovery Fund will be available for this. More investments will be necessary as well because it will allow reducing the costs included in the tariff, said Jansons.
According to him, in the future the role of electricity as a green energy resource will only increase in all of Europe – both in regards to climate neutrality goals and geopolitical developments. “According to forecasts from Eurelectric, among households, the share of electricity in final energy consumption could reach 44% by 2030 and 65% by 2050. Although in recent years we’ve experienced a drop in consumption of electricity, in the near future we predict a rise in consumption. Our objective is preparing the grid for future electricity generation and consumption needs.”
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