According to IRENA, Latvia has installed around 353 MW of solar PV capacity as of 2023. ⁵

Latvia’s solar panel production capacity is projected to reach 830 megawatts. This figure includes the capacity of existing solar installations as well as those currently under development. ⁶

Solar: The levelized cost of electricity (LCOE) for solar photovoltaic (PV) systems powered generation in Latvia is approximately $0.0378USD per kWh ⁸

Hydropower: The average cost of generating electricity from hydropower in Latvia typically falls within the range of $0.02USD to $0.19USD per kWh. ¹⁰

Natural Gas: The levelized cost of electricity (LCOE) for natural gas-powered generation in Latvia is approximately within the range of $2.09USD and $3.11USD  per kilowatt-hour. ⁹

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Hydropower: 59.4%

Natural Gas: 22.3%

Biofuel: 10.3%

Wind: 4.2%

Solar: 3.8%

Electricity in Latvia is generally available 24 hours a day from the national grid. The grid is well-maintained and reliable, ensuring consistent electricity supply to households and businesses.

As of June 2023, there are approximately 15,000 residential solar panel installations in Latvia. This number has been growing steadily, with a significant increase in installations over the past few years. ¹¹

According to publicly available records, there are about 19 installed and projected solar farms in Latvia. ¹²

There is no specific data on the market demand of off-grid systems. However, off-grid solar PV systems in Latvia are gaining attention as a sustainable and cost-effective solution, especially in rural areas where grid connection fees can be high.

Current Demand: As of the end of 2023, Latvia had an installed grid-tied solar PV capacity of 54 MW. ³⁶

Projected Demand: The overall solar energy market in Latvia is projected to generate 10.38 million kWh in 2024. The Latvian solar energy market is expected to record a compound annual growth rate (CAGR) of more than 2.21% between 2024 and 2029. ¹³

Solar Engineer: The average monthly income of an engineer in Latvia is approximately $1,260 USD. However, salaries can range from $997.50 USD (minimum salary) to $2,359.35 USD (highest average). ¹⁵

Project Manager: The average monthly income of a project manager in Latvia is approximately $2,100 USD. However, salaries can range from $1,059.45 USD (lowest average) to $3,134.25 USD (highest average). ¹⁶

General Labor: In Latvia, the salary range for general labor positions generally spans from $564.85 USD (minimum wage) to $1,817.55 USD (upper average). ¹⁷

As of Tuesday, December 3, 2024, the current population of Latvia is 1,864,056. ¹⁴

Office space rent

As of 2023, the annual rental cost for prime office space in Latvia stood at approximately $208.90 USD per square meter. ²⁰

Utilities (electricity, water, etc)

Electricity: The electricity cost in Latvia is 0.242USD per kWh for residential use and $0.168USD per kWh for businesses. ¹⁸

Water: The cost of water per cubic meter in Latvia is approximately $1.26 USD for households and businesses. ¹⁹

Equipment maintenance

The equipment maintenance cost for solar equipment in Latvia can vary depending on several factors, such as the size of the factory, the type of equipment used, and the frequency of maintenance required.

Administrative costs

Salaries & wages: The average salary for a solar engineer in Latvia is $15,120 USD annually. The average salary range for general labor  in Latvia is between $6,790 USD and $21,810 USD per year. ¹⁵¹⁷

Total Installed Capacity

As of 2023, Latvia boasts a total installed electricity generation capacity of around 3305 megawatts (MW). This comprehensive capacity is derived from a mix of energy sources, including hydroelectric power, wind energy, solar power, and fossil fuels. ²¹

Electricity Generation

Latvia’s electricity generation is primarily dominated by renewable energy sources which account for around three-quarters of the country’s domestic electricity generation. It includes hydroelectric power (which accounts for about 60%), wind energy, and solar power. ⁴

Electricity Consumption

Latvia’s annual electricity consumption totals 5.98 billion kWh, averaging 3,179 kWh per capita. The country can partly achieve self-sufficiency with its domestic energy production. All electricity-generating facilities in Latvia collectively produce 4 billion kWh, covering 68% of the nation’s energy needs. The remaining energy is imported from foreign sources. ²²

Grid Infrastructure

Latvia’s electricity grid infrastructure is well-developed and managed by Augstsprieguma tīkls (AST). The grid includes 1,346 km of 330 kV lines and 3,893 km of 110 kV lines. Latvia is also connected to European and Baltic energy networks, allowing for the import and export of electricity. Recent projects include the construction of a third link to Estonia and efforts to synchronize Latvia’s grid with the EU grids to enhance energy security and support the country’s renewable energy goals. ²³

Energy Access

The country boasts a high rate of electricity access, with nearly 100% of the population having access to electricity. ²⁴

Electricity metering: Effective January 1, 2024, the commercial NETO settlement system is the mandatory mechanism for new residential and commercial solar installations in Latvia. This system facilitates the sale of excess electricity generated to the national grid, providing a mechanism for energy cost reduction through consumption offset. ³⁸

Exemption from electricity tax: Electricity produced from renewable sources is exempt from the electricity tax. This exemption is one of the measures implemented to promote the use of renewable energy and to encourage investments in green technologies. ³⁹

Energy Efficiency Retrofits: The Latvian government has launched a subsidy program to encourage homeowners to improve the energy efficiency of their homes. This program provides financial support for various energy-saving measures, including the installation of solar panels. This initiative aims to make renewable energy more accessible and affordable for Latvian residents, promoting a more sustainable and cost-effective energy future. ³⁷

Streamlined Permitting: To expedite the growth of small-scale solar power, simplified and digitized procedures for microgenerator installations have been implemented. These streamlined processes minimize bureaucratic delays, enabling quicker approval and installation of solar panels. This facilitates faster access to clean energy for households and businesses. ³⁸

Installed Projects

Cēsu Solar Power Plant ²⁵

• Location: Outskirt of Cēsis, Latvia
• Capacity: 19.8 MW
• Details: The project was developed by Merito Partners and Saules Energy. The plant is currently the largest solar power plant in Latvia. It is directly connected to the distribution grid and is expected to produce at least 20,400 MWh of renewable energy annually.

Skanuļi Solar Power Plant ²⁶

• Location: Lecava district of Latvia
• Details: This plant was developed by Sunly and began generating electricity at the end of January 2024. The estimated annual production of the Skanuļi solar power plant is 4.3 GWh, which will contribute to the local grid and support renewable energy goals in the region.

Projected Projects

Vārme solar farm ³⁰

• Location: Vārme parish, Kuldiga, Latvia
• Capacity: 94MW
• Details: It is a ground-mounted project being developed by UAB Ignitis Renewables. The project is currently at the under construction stage and will be developed in a single phase. It is expected to be commissioned by 2025.

Stelpe solar farm ²⁹

• Location: Located in the Bauska, Latvia
• Capacity: 145 MW
• Details: The project is being developed by Ignitis Renewables. The project is currently at the under construction stage and will be developed in a single phase. It is expected to be commissioned by 2025.

Targale Solar PV Park ²⁷²⁸

• Location: Located in the Ventspils region, Latvia.
• Capacity: 148 MW
• Details: This solar park is being developed by European Energy. Construction of the solar park commenced in 2024 and is expected to enter commercial operation by the end of 2025. Once completed, it is expected to produce around 154,550 MWh annually.

STG Solar Baltic

They specialize in the design and manufacturing of solar panels. STG Solar Baltic focuses on providing high-quality solar solutions for both residential and commercial clients. ³¹

VSVPRO

The company specializes in delivering energy-efficient solutions across various industries, including HVAC systems, solar energy, and microgenerators. The company is dedicated to offering innovative and cost-effective solutions, aiding clients in reducing their energy consumption and carbon footprint. ³²

Energrid

Energrid is a Latvian energy company offering efficient solar panel solutions and installation services for citizens with state support. ³³

Sunly

Sunly is a renewable energy company operating in the Baltics and Poland. They develop, build, and manage renewable energy projects, including solar and wind parks. They are currently working on several solar projects in Latvia, including the Skanuļi Solar Power Plant and others. ³⁴

Nord Solar

It is a company that specializes in providing solar panel solutions for both residential and commercial clients. They offer a range of services, including the design, installation, and maintenance of solar energy systems1. Nord Solar Latvia uses high-quality Autarco panels and inverters, ensuring efficient and reliable energy production. ³⁵