Latvia’s electricity distribution operator, Sadales tīkls, said it has signed a 60 million euro agreement with the Central Finance and Contracts Agency, receiving support from the EU Recovery Fund (REPowerEU) to enhance the country’s electricity grid.
The funding, disbursed gradually, will help the operator implement crucial infrastructure upgrades aimed at improving electricity quality, system safety, and increasing overall grid capacity by mid-2026, the company said.
The investment will also support advancements in automated management and information system control solutions within the company.
“As a small country with infrastructure needs exceeding short-term financial capabilities, we must maximise EU investment benefits. We positively assess Sadales tīkls’ ongoing work and future plans for infrastructure development,” said the Minister of Climate and Energy, Kaspars Melnis, highlighting the importance of the EU support.
Alongside its ongoing network investments, which see roughly 2 per cent of the 92,000-kilometre grid upgraded annually, Sadales tīkls said it will now be able to accelerate improvements without financial impact on customers.
“This support allows us to make anticipatory investments, adapting our distribution infrastructure to energy trends quickly and efficiently,” said Sandis Jansons, Chairman of the Board of Sadales tīkls.
Key projects include the construction of a new 110-kilovolt (kV) transformer substation in Launkalne and capacity increases at existing 110 kV substations in Riga, Valmiera, Olaine, and Dobele.
The project also includes burying 150 kilometres of overhead lines as underground cables in regional centres and national cities with high or anticipated microgeneration and electrification growth, such as through heat pumps and electric vehicles.
In addition, the company said it plans to introduce smart grid management, installing remote-control equipment in the medium voltage network to quickly localise faults and enable remote switching. Some of these upgrades are already underway as part of the funding conditions.
