Latvenergo AS, a leading state-owned energy utility in Latvia, has secured a €200 million loan from the European Investment Bank (EIB) to modernize the country's electricity distribution network. This strategic financing will help make the grid more efficient and capable of delivering cleaner power to nearly 1.9 million customers while promoting renewable energy and climate action.

Scheduled for completion by the end of 2026, the project will incorporate advanced digital features into the power distribution system. These enhancements are expected to significantly improve the reliability of electricity supply and contribute to the European Union’s broader climate change initiatives by integrating more renewable energy sources into Latvia’s energy mix.

EIB Vice-President Thomas Östros commented, “Modernising Latvia's electricity-distribution network is crucial for both climate protection and energy security. This project will enhance the reliability of power supply and accelerate the integration of renewables, paving the way for a sustainable and resilient energy future. We are proud to support Latvenergo in this transformative endeavor.”

The favorable financing terms offered by the EIB—such as flexible disbursements and extended loan duration—are set to attract further long-term investments, reinforcing Latvenergo’s green credentials. This marks the seventh financing agreement between the EIB and Latvenergo, underscoring their longstanding and robust partnership.

Guntars Baļčūns, Member of the Management Board of Latvenergo AS, stated, “Our investment in modernizing the distribution network is a key element in our transition to renewable energy and a significant boost to the national economy. With competitive funding from the EIB, we can more efficiently utilize our investments in solar and wind parks while meeting our climate and business objectives.”

Aligned with Latvia’s National Energy and Climate Plan for 2021–2030 and the EIB’s Energy Lending Policy, this investment not only supports climate action but also aims to promote economic, social, and regional cohesion across Latvia.

This major initiative positions Latvenergo as a pivotal player in driving sustainable energy transformation in the region, ensuring a robust, modern, and efficient power distribution network for the future.