Smart Energy

Smart energy is one of Latvia’s strongest current investment areas. In 2025, LIAA-supported smart energy projects attracted €428 million across four projects, driven by renewable energy, grid flexibility, hybrid parks, energy storage, hydrogen, sustainable fuels and industrial decarbonisation. Latvia’s coastline, renewable energy potential, competitive land costs, SEZ incentives and engineering base create a strong platform for large-scale green transition investments.

Key Strengths

  • Renewable energy with EU market access: 4 th in the EU in share of energy from renewable sorces and consumption with over 50% from renewable sources, 2025.
    62% of Latvia’s final energy consumption is targeted to come from RES by 2030.

  • Highly prepared electricity grid with low network tariffs: 5.8+ GW is available in the transmission grid for the connection of new power plants. Advanced ICT sector in Latvia enabling smart grids and energy-data solutions. 

  • Geographical advantages: 500km+ coastline with favorable wind conditions in sea ->9m/s, and underground sites storage potential for the CC or natural gas storage. 

  • SEZ and industrial park ecosystem: 
    80% - 100% discount on real estate tax 
    80% discount on CIT for dividends 
    No upfront VAT payments  
    Excise tax exemption on certain fuel usage

  •  Active support from government and municipalities for green transition investments. 

 

Main subsectors​​​​​
  • Power-to-X Production 
    Usage of Latvian Green Electricity to: Hydrogen initiatives, green ammonia, Methanol, Bio-fuels, eSAF & SAF productions. 

  • Biomethane Production 
    Biomethanol and bio-slurry production with government support, feedstock from local biowaste, biomethanol injection points, and natural underground structures (sites). 

  • Hybrid Parks 
    Combining Batteries, Wind & Solar, Data Centers, Gigafactories. 

  • Smart City Solutions & Urban Mobility  
    Electric Mobility & Charging Infrastructure, City Mobility, Digitalization & Smart Logistics, Engineering & Power Electronics, Sustainable Aviation.

Fast facts
  • Latvia is ranked 4th among EU countries in renewable energy share of total consumption.

  • Strong growth in large-scale wind farms, BESS systems, hybrid parks, and solar installations. 

  • Rapid expansion of EV charging networks supporting domestic and Baltic mobility corridors.

  • Increasing investment in hydrogen and SAF R&D, with early-stage pilot projects underway.

  • Local ICT, smart manufacturing & engineering sectors provide a robust foundation for energy software, monitoring systems and automation.

Employment and education
  • 25% STEM sector Students: or 18,498 individuals, icluding 2561 foreign students 

  • ~46% Adults in Tertiary education 

  • 80% of Energy Sector employees speak in English 

  • ~30'000 Total Labor pool in the Energy Sector 

  • 56% Share of Female in Energy Sector (EU average of 48.8%) 

  • EUR 2,116 Average gross salary for typical professions in these sectors. Energy sector is Top 3 most paid sector in Latvia 

  • Leading academic institutions — University of Latvia, Riga Technical University, Riga Technical College — supply specialists in energy systems, power engineering and digital mobility.

  • Strong cooperation between universities, research labs and industry fosters hands-on innovation.

Industry leaders
  • East Metal
    A leading manufacturer of complex steel structures with more than 40,000 m² of production space across four plants in Latvia and Denmark. Specialises in components for wind energy, transport equipment, cranes, lifting gear, and machinery for industrial applications.

  • CNC SAAN
    A precision metal processing company offering milling, turning, welding and CMM measurement services. Exports mainly to Sweden, Norway, Germany and Denmark, with capabilities supporting machine-building, energy, agriculture, forestry, oil & gas, and furniture industries.

  • Energofirma Jauda
    One of the Baltic region’s largest producers of electrical materials and equipment, with over 50 years of experience. Manufactures compact substations, low- and medium-voltage equipment, metal constructions and electrical installation components.

  • Getliņi
    The largest municipal solid waste management site in the Baltics and one of Europe’s most advanced. Operates as a modern recycling and resource-recovery centre, producing biogas from biodegradable waste for renewable energy generation.

  • NACO Technologies
    Naco Technologies have created nano-coating and new materials replacing the need for platinum and expensive materials in the production and usage of hydrogen at massive scale.

  • Aerones
    A global innovator in robotic wind turbine maintenance, offering advanced robotic and IoT-based tools for inspection, repair and cleaning. The technology reduces downtime, lowers costs, increases turbine efficiency and contributes to greenhouse gas emission reduction.

  • CIS Liepāja
    A leadeing project company dedicated to sustainable hydrogen production in the Port of Liepāja

  • Norsaf
    NORSAF will produce Sustainable Aviation Fuel (SAF), sustainable diesel, and sustainable gasoline with an annual capacity of 100,000 mt, located in the Liepaja Special Economic Zone (LSEZ)

  • PurpleGreen
    A large-scale hydrogen and ammonia plant is in development, with studies underway and a 2024 sales MoU signed with a German trader.

Transport and storage sector in Latvia

 From a transport and logistics perspective, Latvia offers one of the most advantageous locations in Northern Europe. Positioned at the centre of the Baltic Sea region — one of Europe’s fastest-growing economic areas — Latvia provides direct access to major EU, Nordic and Eurasian markets.  To get further information on Transport and storage sector in Latvia click here.

 

More about smart energy:

Downloads

Smart energy and mobility overview (PDF)

Contacts

Read why they have chosen Latvia

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