The task of the joint venture will be to build wind power plants by 2027. In this way, it is planned to reduce Latvia's electricity deficit and dependence on external suppliers (most notably Russia), the Minister of Economics Jānis Vitenbergs (National Alliance party) told the media, pointing out that Latvia already produces about 70% of its electricity needs.
The project is planned to be implemented without state support mechanisms in accordance with a rational business plan, but not with excessive return requirements, the ministry informed. Meanwhile, Vitenbergs revealed that the founders of the joint venture will invest in the share capital and plan to borrow funds on commercial terms, including by issuing green bonds.
The Minister of Economy promised more detailed information on the innovative joint venture in the coming months.
"The project aims to maximize the benefits for society through the synergy of pooling the assets, resources and competencies of two state-owned strategic corporations. The project will ensure significant investments in the Latvian economy, as well as promote economic activity in the surrounding regions. The location of a project of this size in Latvia will also promote long-term demand for high-tech industries in Latvia,” Vitenbergs told the media.
The relevant proposal of the Ministry of Economics was conceptually supported by the Cabinet on Tuesday. The ministries have been instructed to improve the legislation and submit it to the government for review by 1 April this year in order to reduce barriers and promote the development of wind farms in Latvia.
The government also instructed the shareholders of Latvenergo and Latvijas valsts meži to prepare a draft decision on the establishment of a joint venture for the development of wind farm projects by May 1. The Ministry of Economics must also prepare the necessary amendments to regulatory enactments by April 1, to promote the development of wind farms in Latvia.