The investment program will entail a total cost of EUR 29 million, with NIB financing 70% of the overall expenses and will be divided into two distinct sub-projects.
The first focuses on expanding and reconstructing Rīga’s heat distribution systems, replacing outdated pipelines from the 1960s and 1970s.
"This renovation will enhance the overall performance of the district heating network and reduce energy losses. The heat distribution system expansion will allow new clients to be serviced and a reduction of air pollution," the NIB said.
The second subproject aims to enhance energy generation from renewable resources such as sustainable biomass to improve production effectiveness. The project should add 53,000 MWh of renewable energy generation and decrease primary energy consumption by 29,000 MWh.
“NIB’s loan to Rigas Siltums showcases our dedication to advancing a sustainable district heating infrastructure in Riga. Together, we are fostering a greener future by improving energy efficiency and promoting the utilisation of renewable energy sources,” said André Küüsvek, President and CEO of NIB.
“Our vision of Rigas Siltums AS is as an energy exchange platform focusing on different types of energy, using different renewable sources, and cost-effectively providing customers with energy. We plan to reach 90% of the district heating supply in Riga as in the Nordic countries, and by the end of 2026, we plan for renewable energy to be 90% of our portfolio,” said Rigas Siltum JSC board member Vineta Kutkēviča.
Rigas Siltums AS is a regulated district heating utility owned by the Riga city municipality (49%), the State of Latvia through the Ministry of Economics (48.995%), “Enerģijas risinājumi.RIX” Ltd (2%), and Latvenergo Public Limited Company (0.005%). The company is responsible for producing and supplying district heating to Riga City.
NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries.