Latvian households offered to source energy from wind farms – Baltic News Network
To further develop renewable energy production in the Baltic and promote new solutions to reduce energy costs, Latvia has launched a pilot project for households, offering them to source electricity directly from local wind farms .
This will contribute to the phasing out of imports of energy resources, as wind turbines already have considerably lower production costs. This makes it possible to offer electricity at a price almost 30% lower than the offers available on the Latvian market, the energy company Enefit told BNN.
The pilot project offers new possibilities for user/producer cooperation with mutual benefits. Households have the option of signing contracts with wind power producers and agreeing on a fixed price for electricity in the long term. The producer, for his part, receives guarantees of consumption and the possibility of planning his development in a stable environment.
Currently, the agreement with the Baltic wind farm developers foresees a fixed price for periods of six years, guaranteeing a price of 0.164 EUR/KWh. For comparison, the current average fixed electricity price in Latvia is around 0.23 EUR/KWh.
“Rising electricity costs are the new reality dictated by Latvia’s dependence on imported energy resources. In the spring, we usually see a drop in prices, which is largely due to the high water levels in the reservoirs of the hydroelectric plants in the region. But it is already clear that electricity prices will fluctuate a lot in the future. At certain times, prices can increase significantly. At the same time, wind farms in the Baltic can already offer significantly cheaper electricity. Volume is what is currently limited. Nevertheless, the more users procure green energy, the more such power plants will be developed in the Baltic States, widening accessibility to cheap electricity,” said Enefit Chairman of the Board, Krists Mertens. .
“With this pilot project, we want to demonstrate that we can realistically talk about the energy independence of Latvia and the Baltic region in general, and this does not mean an increase in costs. Rather, it’s the opposite: giving users access to green energy. Green energy generation costs can be competitive without government support. In addition, in this way we can also contribute to the sustainable development of the national economy and the reduction of CO2 emissions,” comments Mertens.
The results of the survey conducted in March 2022 show that 65% of residents are ready to support Latvia’s transition to electricity generation from renewable energy resources. Currently, the production of renewable energy is limited. The pilot project aims to enable 10,000 households to obtain electricity directly from Enefit Green wind farms in Finland, Estonia and Lithuania.
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According to Mertens, a version of this solution was tested last year on the business customer segment: “Companies from different segments have signed long-term contracts with wind farms. Experience shows that the energy costs of wind farms offer up to 70% savings, given the rapid fluctuations in the market price. For wind farms, this arrangement has provided a guaranteed flow of investment, which helps to increase production. By including renewable energy power plants in household development efforts, we can help promote the development of modern local power generation in the next five-year perspective.”