Finnish investor advances €150–180 million wind energy project in Smiltene

Finland-based renewable energy fund manager Taaleri Energia is moving forward with the construction of the “Augstkalni” wind farm in Smiltene Municipality, marking one of the most significant renewable energy investments currently under development in Latvia. The project highlights Latvia’s growing role as an attractive destination for sustainable energy investments in the Baltic region.

The wind park, located between Launkalne and Drusti in Smiltene Municipality, will consist of 16 high-capacity wind turbines with a total installed capacity of 112 MW. Once operational, the wind farm is expected to generate approximately 330,000 MWh of electricity annually — enough to supply electricity to more than 80,000 households. The project is also expected to reduce CO₂ emissions by around 64,000 tonnes per year.

The project is jointly owned by Taaleri Energia and Lithuanian investment management company Lords LB Asset Management. According to Taaleri Energia, the total investment amount is estimated at €150–180 million and includes wind turbine supply and installation, civil and electrical infrastructure works, construction of a new substation, as well as development and project management costs.

Construction of the wind farm infrastructure began in 2025, and major works are already well advanced. According to Taaleri Energia, roads, turbine platforms, foundations, electrical cabling and the substation infrastructure are nearing completion. Wind turbine component deliveries have already started and are expected to continue until the end of June 2026, while installation works are planned to continue through the second half of 2026.

“Project Smiltene represents the first project our SolarWind III Fund is putting into construction in the Baltic region and will be a major contributor to Latvia’s energy transition efforts,” says Harri Antikainen, Taaleri Energia’s Country Manager for the Baltics.

The company notes that Latvia has become an increasingly attractive market for renewable energy investments due to its rapidly developing investment environment, strong renewable energy potential and supportive institutional cooperation.

“Overall, Latvia is positioning itself as a competitive market in the Baltic region, with strong potential for further growth in wind and hybrid energy projects,” says Harri Antikainen. “The investment environment is developing rapidly, with increasing interest from international investors. It is a supportive environment, with active engagement from authorities and agencies, while permitting and transmission grid processes continue to evolve.”

According to the investor, Smiltene Municipality stood out due to a combination of favorable technical, regional and partnership-related factors.

“Project Smiltene combines a unique set of factors which make it a very attractive project for us. A supportive municipality, attractive wind conditions and the presence of highly competent local and international partners were among the key reasons behind the location choice,” explains Harri Antikainen.

The project is expected to deliver long-term benefits both for the local community and the wider regional economy. In addition to significant investment inflows, the wind park is expected to create employment opportunities during both construction and operational phases, generate additional income for local landowners and increase municipal tax revenues. The project will also contribute to local infrastructure improvements, including road infrastructure upgrades.

Households located within two kilometres of the wind farm are also expected to receive annual compensation payments.

The company additionally notes that battery energy storage system (BESS) solutions are currently being evaluated as a possible future component of the project. According to Taaleri Energia, energy storage technologies could help improve grid stability and support more efficient integration of renewable energy into Latvia’s electricity system.

The Investment and Development Agency of Latvia played an important role during the project development and investor support process. According to Taaleri Energia, LIAA assisted with market entry, stakeholder coordination and communication with local institutions.

“LIAA has demonstrated strong responsiveness, a good understanding of investor needs and a proactive approach in facilitating communication with stakeholders,” says Harri Antikainen. “Its support has been particularly valuable during our initial market entry phase, helping with local market insights, introductions and coordination with relevant parties.”

The company also sees Latvia as offering strong long-term potential for international investors in the renewable energy sector and beyond.

“Based on our experience, Latvia offers compelling opportunities for renewable energy investments and several other industries. Our recommendation to other investors would be to engage with local stakeholders early, establish strong local partnerships and take a long-term perspective as the market continues to develop,” adds Harri Antikainen.

The first wind turbines are expected to begin supplying electricity to the grid in the second half of 2026, with the project targeted to become fully operational by the end of the year.

About Taaleri Energia

Taaleri Energia is a renewable energy fund manager with one of the largest dedicated investment teams in Europe. We develop, construct, operate and exit wind, solar and battery energy storage assets that drive the global transition to clean energy. Taaleri Energia has EUR 1.4 billion of assets under management.

Taaleri Energia is part of the Taaleri Group. Taaleri is a specialist in investments, private asset management and non-life insurance, powering change with capital. Taaleri has EUR 2.7 billion of assets under management in its private equity funds, co-investments and single-asset vehicles. The company employs approximately 130 people. Taaleri Plc is listed on Nasdaq Helsinki.

www.taalerienergia.com/en