“Ignitis Renewables”: Green energy wave in Latvia – investments that shape the future

In recent years, the Baltic region has been increasingly asserting itself on the European energy map, and Latvia has become an important stopover point in the production of renewable energy. The growing potential of renewable energy, a relatively favourable investment environment, and a strategic location in the European market make Latvia an attractive destination for long-term capital investments in the energy sector. One of the most visible drivers of this development is the international energy company “Ignitis Renewables”, which operates in the Baltic States and Poland and, since 2022, has been implementing ambitious renewable energy projects in Latvia while purposefully building its presence in the region. 

“Energy today is the basis for the growth of the entire economy – if a country has sufficient, locally produced electricity and long-term predictability, it becomes a strong magnet for new investments,” emphasizes Baiba Lāce, Head of “Ignitis Renewables” in Latvia. 

Currently, the company is already producing electricity in three industrial-scale solar parks in Latvia, with total investments amounting to 170 million euros. Their combined installed capacity reaches almost 240 megawatts, making them the largest solar parks producing electricity in the country. The annual amount of electricity produced by these parks is equivalent to the average consumption of approximately 97,000 households. 

“Of course, this is a comparative indicator – solar energy cannot be produced at night or in a constant amount throughout the year, but it allows us to understand the scale and contribution of the projects,” explains Baiba Lāce. All three parks are currently operating, with technical tests continuing in parallel to receive full operational approval from the transmission system operator in the spring of 2026. 

Tume solar park – the next step in technological development 

The company’s next-largest project in Latvia is the Tume solar park, which is currently under construction. Investment in the development of this park reaches 106 million euros, and production is planned to begin in the summer of 2026. 

This park also marks a new technological stage in the development of Latvian solar energy – it will use solar tracking panels that adapt to the movement of the sun throughout the day. “This technology can be explained simply – it’s like turning a towel on the beach to get a better tan,” laughs Baiba Lāce. “It allows us to produce more electricity in the morning and evening, increasing efficiency by about ten percent.” 

The Tume park will be able to produce electricity equivalent to the annual consumption of 83,000 households and will occupy approximately 300 hectares. 

Latvia – an attractive but challenging investment environment 

When assessing Latvia from an investor’s point of view, Baiba Lāce highlights several key competitiveness factors: relatively low land prices, low population density, and significant potential for renewable resources. “The potential for renewable energy production in the Baltic region is almost seven times greater than what we would need for our own consumption,” she points out. “In the long term, this opens up the possibility of viewing electricity as an export commodity to other countries where there is a shortage of electricity.” 

At the same time, investors must also consider the risk of market saturation. Production capacities are rapidly approaching current consumption levels, and market saturation is predicted as early as 2026–2027, while larger interconnection capacities with Central Europe are still in development. “This is a difficult moment for investment decisions, but it is precisely this situation that creates the basis for the next wave of growth,” emphasizes Lāce. 

Local contribution: employees, partners, and suppliers 

“Ignitis Renewables” presence in Latvia means not only capital investments but also job creation and the involvement of local companies. The company has grown from a small team to more than 60 employees within a few years and is currently actively building its own maintenance and operations team. 

“Each solar park requires six to eight permanent employees, and we are deliberately developing this competence locally,” says Baiba Lāce. During construction, more than a hundred people are working simultaneously at the Tume solar park, while Latvian companies are involved in infrastructure development, including the construction of substations and cable systems. 

Also, for the second year, the company is organizing a grant support program in regions where the company's renewable energy projects are already located or are still being built. Within the framework of this program, funding is awarded on a competitive basis to local community initiatives in various areas that promote economic and social well-being, strengthen sports and cultural diversity, as well as support environmental protection, ecology and sustainability solutions in the region. This year, 17 project applications were received in Latvia, of which funding will be awarded to nine projects, distributing the intended funding of 225,000 euros. 

Wind, batteries, and long-term strategy 

By 2030, “Ignitis Renewables” strategic goal is to reach 4–5 gigawatts of installed capacity in the Baltic States and Poland, developing not only solar energy but also wind power and electricity storage solutions. 

In Latvia, several wind energy projects are currently at various stages of development – from environmental impact assessments to detailed financial modeling. “Wind projects require longer development timelines and close cooperation with municipalities and local communities, but they are an integral part of the energy transition,” explains Baiba Lāce. 

She notes that public awareness of the importance of renewable energy has increased significantly in recent years, especially after the 2022 energy crisis. At the same time, solar energy is currently more easily accepted by society than wind projects, making open dialogue crucial in the long term. “Public understanding of the need for renewable energy continues to strengthen. Of course, there are concerns about the number of renewable energy projects in Latvia, but it is important to emphasize that studying project ideas does not mean implementation. Only economically viable and high-quality projects will be realized, in line with the growth of electricity consumption,” stresses Baiba Lāce. 

Cooperation with LIAA – a shared goal of attracting investment 

Cooperation with the Investment and Development Agency of Latvia (LIAA) also plays an important role in the company’s operations in Latvia. “We are a foreign investor, and LIAA has been an important partner for us, especially in 2025, when several key initiatives to promote cooperation were implemented,” says Lāce. She highlights LIAA’s role as a mediator in dialogue with state institutions, particularly on issues related to accelerating processes and reducing administrative burdens. “Our vectors are aligned – locally produced, stable, and predictable electricity is the foundation for attracting further investments,” she explains. 

Energy as the basis for economic growth 

Concluding the conversation, Baiba Lāce emphasizes the strategic importance of renewable energy for Latvia’s economy: “Electricity today is like the bloodstream of the entire economy. If this bloodstream is well organized, investors see stability, predictability, and long-term potential. Stable, locally produced energy ensures predictable prices and attracts data centres, manufacturing plants, and other energy-intensive companies, creating a closed circle: more production – more consumption – more investment. For Latvia, this means growth, independence, and a greener future,” she concludes.