Latvia A favourable environment for energy-sector investments
Latvia’s clear, open market rules and well‑defined national energy goals make it attractive for investors looking to put their money into renewable‑energy projects
OPINION | By 2030, renewable energy is expected to account for half of Latvia’s total energy consumption. Additionally, more than 60% of electricity will need to be generated from renewable energy sources. Latvia has significant potential in renewable energy, particularly through the use of hydropower, wind and solar energy.
On one hand, Latvia has several advantages compared with other Baltic countries, since hydropower plants are already operational here; on the other hand, we lag behind our neighbours in wind-energy production. From a regulatory perspective, Latvia is in a reasonably good position: clear and open market rules, along with precisely defined national goals and requirements, create a favorable environment for private investments in the energy sector.
Sunly has been operating in Latvia for four years. Considering our experience in other Baltic countries and Poland, we can look at this market from a comparative perspective. We are investing in and developing production of wind and solar energy, as well as battery storage systems, in recognition of the significant potential in the Latvian market.
Our immediate plans in Latvia involve the construction of four solar parks with a total capacity of 553MW. All parks in Latvia are designed as hybrid parks, with future plans to integrate wind turbines or battery storage systems—or a combination of both. This will ensure stable energy supply and help the Baltic states transition to safer and more sustainable energy sources. These parks will allow for an effective response to demand fluctuations and ensure the continuity of energy supply even in crisis situations.
It is no secret that the Baltic states need to reorient energy supplies towards local sources to strengthen their energy security. It is crucial to achieve energy independence from Russia, which includes not only abandoning Russian gas but also decoupling from the Russian electricity system, which has historically been linked to the Baltic states. Our approach and technologies enable the Baltic states not only to produce enough electricity to meet the demand of their consumers but also to create reserves for crisis situations.
Furthermore, the Baltic states can use their shared energy network to promote independence from Russia. By establishing a strong internal market and developing their resources, the Baltic states can support each other and reduce Russia’s influence on the region. To achieve these goals, innovative technologies that combine wind and solar energy, as well as battery storage systems at a single connection point and direct line with consumers, play a crucial role. This allows for more efficient management of energy production and consumption, thus reducing the need for external energy sources.
The state also plays a crucial role in renewable-energy production and greater energy independence—though this does not necessarily imply investments. It should be noted that, compared with other Baltic countries, Latvia stands out for its decision not to subsidise renewable energy, which can largely be explained by bad experience. Such an approach, where avoids using financial instruments to encourage market participants, can also be beneficial, as it pushes companies to seek effective and innovative solutions on their own.
In fact, it is much more important for the state to ensure a stable and clear regulatory framework so that companies can plan long-term investments. Appropriate market regulation and clearly defined goals are essential to attract private investments and allow companies to plan their activities in line with the state’s energy strategy. The Baltic states, including Latvia, need to move away from the Soviet legacy where the state controlled most of the energy production. To achieve effective renewable energy development, the market needs to become more liberalised, creating opportunities for private companies to participate in energy production.
Another important pillar in the development of renewable energy is the overall understanding and attitude of policymakers and the public. While various prejudices still exist in parts of Latvian society, the overall attitude towards the energy sector and renewable energy is changing. With the advent of new technologies, people are beginning to realise that energy is no longer just a state-controlled resource; for example, more and more households are choosing to install solar panels and battery systems to produce and store their electricity.
The shift in public opinion is significantly influenced by the clear financial benefits—if people can control their electricity expenses and even gain financially by adjusting their energy consumption based on market conditions, the overall attitude towards renewable energy also changes. At the end of August, the climate and energy ministry approved financial benefits to councils and residents living near wind park. The minister has noted that large-scale wind-energy projects can help ensure cheaper energy for everyone, increase energy security and promote investment inflow into Latvia’s state budget, which could be used, for example, on healthcare.
Of course, there is still much homework to be done in this area to improve awareness and understanding of energy issues. The state and the private sector need to help people understand how they can benefit from new technologies and what opportunities renewable energy offers.
The public must be informed that renewable energy is a tool that helps ensure the continuity and security of electricity supply, as well as use energy more efficiently to reduce bills and promote sustainable development. Public understanding and participation in energy issues are critical to promoting sustainable energy production and consumption. The shift in public perception, driven by new technologies and information availability, can significantly impact how energy is produced and consumed in Latvia and the Baltic region as a whole.
As mentioned, Latvia already has significant advantages in renewable energy development, particularly thanks to hydropower plants and the future potential for wind and solar energy use. Furthermore, Latvia, unlike other Baltic countries, is better positioned to achieve energy independence from Russia by utilising local energy resources and modern technologies. The benefits will be felt across various sectors, as cheaper energy will allow businesses to increase their competitiveness, while the investments obtained will allow the state to increase its budget and use the funds, for example, to raise the pay of teachers and police officers, or to provide social services, healthcare and other services.
Pritt Lepasepp is the co-founder and CEO of Sunly.
THE BALTIC SEA in recent years has become a place where everything converges: climate goals, economic ambitions, environmental protection, fishing, shipping and—more and more—security. Offshore wind energy for Latvia is not just a story about “green” electricity. It is a choice about what kind of Baltic Sea we want to see: will it be a space for our energy independence, security and innovation, or a territory of disputes, concerns and uncertainty?
According to the latest insights from the LIAA survey, conducted in February in collaboration with the sociological research firm Norstat, there is already a solid foundation for a conversation about offshore wind-energy development.
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A convincing majority (70%) of the Latvian public considers the sea a suitable location for wind farms, and national energy independence remains a top priority (84%). In fact, the key question is no longer whether wind energy is beneficial, but rather how we can implement it safely and intelligently, ensuring that coastal residents and the country as a whole benefit from it.
Professionals also revisit this “how” once a year in dedicated discussions; for example, in the programme of the WindWorks 2026 conference, the security dimension was highlighted explicitly: how to protect critical energy infrastructure in the Baltics, and what to expect in terms of cybersecurity threats.
The planned Latvian-Estonian wind farm ELWIND is not an isolated object. It will become part of a system consisting of subsea cables, substations, communication solutions, maritime traffic safety monitoring, remote control, data exchange and many other components. In other words, it is a network of critical infrastructure whose vulnerability in Europe has, in recent years, become an open and publicly acknowledged fact.
That is precisely why tangible steps have already been taken at the European level to treat underwater infrastructure not merely as an engineering solution, but also as a significant security issue. In 2024, the European Commission published recommendations for the security of submarine cables, emphasising co-ordination, governance and funding measures to mitigate risks to these connections that are vital for global communications. Meanwhile, in 2023, NATO established the Critical Undersea Infrastructure Coordination Cell to strengthen co-operation with industry, promote the exchange of best practices and enhance defence capabilities.
Security is not an abstract concept in Latvia either. In April 2024, the energy ministers of eight Baltic Sea countries agreed the Vilnius Declaration, which provides for closer co-operation in strengthening the security of critical offshore energy infrastructure. This agreement was reached at a time when concerns in the region had increased over attacks and acts of sabotage, which have highlighted the vulnerability of infrastructure.
In the current context of geopolitical tension, energy security has shifted from a theoretical concept to a matter of everyday costs and resilience. Even minor disruptions in supply chains are enough for global price increases to impact inflation in Latvia. This is clearly reflected in the recent situation in the oil market. Crude oil prices have risen, while the European gas market remains volatile.
HOW DOES WIND ENERGY FIT INTO THIS CONTEXT?
In the event of unpredictable developments, imported fuel quickly becomes a significant risk to household budgets. Under these conditions, electrification and domestic renewable-energy sources take on strategic importance. The greater the share of consumption that can be shifted to electricity, and the more of it we produce ourselves (using wind, solar and other renewable resources), the less dependent we are on external disruptions, and the more stable and predictable energy bills become.
Excessive dependence on a limited number of electricity sources is a significant risk we cannot afford. Wind energy enables diversification of the energy-production structure; therefore, security and maritime spatial planning dimensions must be integrated from the very beginning of a project, rather than added later as an afterthought.
When designing such facilities, potential incident scenarios and response plans must be anticipated in advance, cybersecurity requirements should be included as a mandatory technical baseline, and maritime spatial planning must be carried out in a way that balances security and defence interests with the needs of energy, fisheries and environmental protection. With this approach, the ELWIND can become a reliable and resilient part of critical infrastructure.
Job creation, local business development, investment in infrastructure, as well as growth in science and research are among the most frequently cited benefits of offshore wind energy. Although approximately 70% of the population considers the sea a suitable location for wind-farm development, people still have questions about their potential impact on the landscape, biodiversity and restrictions on fishing, kitesurfing and shipping. Often, people’s perceptions are dominated by the image of wind turbines alone, rather than the broader scope of economic activity and overall benefits they can bring.
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The development of offshore wind creates opportunities for the emergence of new coastal industries and competencies. It encompasses a wide range of maritime-related activities—from energy production to the use of water resources and coastal tourism—while simultaneously fostering the development of new technologies, skills and services. From this perspective, offshore wind can become a significant platform that generates jobs in coastal areas and promotes innovation.
In Europe, this platform approach is increasingly manifesting as multi-functional solutions, for example, seaweed farming within wind farm zones. In the Netherlands, as part of the North Sea Farmers project at the Hollandse Kust Zuid wind farm, located approximately 18 kilometers offshore, commercial-scale seaweed cultivation has been established, while simultaneously researching biodiversity and carbon-sequestration opportunities. Meanwhile, the Ecowende wind farm, another Dutch project, is being created as one of the most environmentally friendly projects of its kind, where all activities and technical solutions are aligned with nature-conservation principles.
These examples lead to a vital conclusion: a wind farm is not a closed or restrictive zone; it can become a space for innovation, where research, services and coastal entrepreneurship develop simultaneously. In fact, it is part of the solution for preserving local communities and encouraging the younger generation to settle in coastal areas.
For Latvia, this perspective is particularly significant, as it offers coastal cities and ports the opportunity to transform from infrastructure peripheries into regional centers of competence. In practice, harnessing offshore wind energy means strengthening port capacities, developing logistics, vessel servicing, cable infrastructure, service and repair bases, as well as training opportunities. If this phase is not developed, the greatest added value flows elsewhere. Conversely, by developing it, coastal residents gain jobs, knowledge and business opportunities.
COEXISTENCE AT SEA
The survey mentioned above shows that public awareness in Latvia about wind-farm initiatives and energy-security issues is gradually increasing; however, a large part of the public still remains at the level of “I have heard about it” or “hard to say”. This lack of information creates fertile ground for rumour, resistance and politically motivated fluctuations during pre-election periods.
If we want to build an inspiring yet honest narrative, we must state clearly: ELWIND will only be successful if the discussion about it is framed in terms of security, economic development and public trust. To achieve this, simple and understandable principles are needed: fewer general slogans and more clear answers on the essentials (where the project will be located? why specifically there? what the benefits and risks will be? what compensation and benefit-sharing mechanisms are planned? and how nature and security protection will be ensured?)
Communication should follow an approach in which coastal residents are perceived as beneficiaries rather than obstacles. Latvia’s task is not to prove that wind energy is good; Latvia’s task is to demonstrate that it can be implemented safely, with added value for the economy, and through a process that the public can trust.
The author is the head of the ELWIND project division for the Investment and Development Agency of Latvia (LIAA).
Originally published by LIAA.
THE BALTIC SEA region has built one of the world’s most interconnected and dynamic areas, bound together by trade, energy, digital infrastructure and a shared maritime environment. But the pressures bearing down on the region today require something more than connectivity. They require resilience.
Geopolitical tension on Europe’s eastern flank, accelerating climate stress on the Baltic Sea ecosystem, demographic shifts across the region and hybrid threats targeting critical infrastructure do not respect national borders. They cannot be solved by any single country, economic sector or level of government acting alone.
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Tallinn hosts the 17th EUSBSR Annual Forum on 11-13 May 2026 at Tallinn Creative Hub, bringing together over 500 policymakers, municipal representatives, researchers, businesspeople and civil-society representatives from across the Baltic Sea region to turn strategy into action. The aim of the Annual Forum is to translate regional co-operation into concrete action.
Resilience in this context means more than crisis response or military preparedness, though both matter. It means energy systems robust enough to withstand disruption, transport and digital networks that hold under pressure, economies competitive enough to attract investment and talent and institutions trusted enough that societies stay coherent when tested. It also means coastal and marine ecosystems healthy enough to sustain the communities that depend on them. As Tõnis Nirk, chair of the EU Strategy for the Baltic Sea Region National Co-ordinators Group, has put it: resilience in the Baltic Sea region means more than withstanding shocks—it means thriving through them by building the capacity to adapt and collaborate in an era where crises are becoming the new normal.
Cities and regions sit at the centre of all of this. When a crisis hits, whether a flood, a cyberattack or a supply-chain collapse, it is local and regional authorities that respond first. They manage infrastructure, deliver essential services and maintain the community trust that resilience depends on. Their co-operation across the Baltic Sea region is not peripheral. It is foundational.
CO-OPERATION AS THE ANSWER
This is also where the EU Strategy for the Baltic Sea Region demonstrates its purpose. Since 2009, the strategy has connected policies, funding programmes and stakeholders across countries and sectors, turning individual projects into long-term solutions. The newly updated Action Plan (2026, pending European Commission approval), the result of over 100 ministries, national agencies and EU institutions working toward a shared roadmap, reflects a clear shift: member states have placed resilience at the centre of transnational co-operation in the Baltic Sea region.
The experience of 17 years of co-operation shows that the better the region works together across borders, levels and sectors, the stronger it becomes. That is not a platitude. It is the architecture behind a strategy that has shaped how eight EU member states address their most complex shared challenges.
The author is the International PR and Global Visibility Co-ordinator for the city of Tallinn.
Originally published by the city of Tallinn.
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