BAKU, Azerbaijan, March 7. The European Investment Bank (EIB) is providing a 200 million euro loan to Latvenergo AS to upgrade Latvia's electricity distribution network, Trend reports.
The state-owned utility will use the financing to enhance efficiency, improve reliability for 1.9 million customers, and support the integration of renewable energy.
The project, set for completion by the end of 2026, includes digital upgrades to the grid and aligns with the European Union’s climate goals. “Modernising Latvia's electricity-distribution network is important both for the climate and for energy security,” said EIB Vice-President Thomas Östros. He emphasized that the improvements would strengthen supply reliability and facilitate the transition to renewable energy.
Latvenergo will benefit from the EIB’s favorable loan terms, which include flexible disbursements and a longer repayment period. This support is expected to attract additional long-term financing and bolster the company’s sustainability efforts.
“This investment will help modernize the distribution network and advance the energy transition to renewable sources,” said Guntars Baļčūns, Member of the Management Board of Latvenergo AS. He highlighted the EIB’s role in supporting both business and climate objectives, noting that the partnership has spanned over 25 years.
The initiative aligns with Latvia’s National Energy and Climate Plan for 2021-2030 and the EIB’s Energy Lending Policy, contributing to economic and regional development alongside climate action.