18 Oct 2018
EUR 35 million
Financial institutions and SMEs
|Date of loan:||29 Aug 2007|
|Amount in EUR:||EUR 50 million|
|NACE sector / loan type:||Electricity, gas, steam and hot water supply|
|Business area:||Energy and environment|
The loan will be used for financing Latvenergo's investment programme, which includes the rehabilitation of the transmission and distribution network and the modernisation of the heat and power plant TEC-2 in Riga, as well as other energy efficiency projects. The total investments for 2007-2008 are estimated at EUR 321 million. The NIB loan totals EUR 50 million. Latvenergo is a state-owned joint stock company that is engaged in the production, transmission and distribution of electric power and heat energy. Latvenergo power production accounts for approximately 90% of Latvia's total power production output and covers 60% of the country's needs.
The main environmental benefit from investments in the distribution and transmission network is derived from reduced network losses (smaller amount of energy being wasted). The modernisation of the heat and power plant will lead to reduced NOx and SO2 levels. The planned CO2 levels per produced unit of energy are also expected to be reduced, but as the electricity generation is planned to increase three-fold, the total amount of CO2 emitted to the air from the plant will increase. All the projects are to comply with national and EU laws and directives and obtain the necessary permits.