“A growth-orientated business environment and a well-thought-out investment attraction strategy are essential for Latvia’s economic transformation, so that entrepreneurs find Latvia attractive as a country to invest in high-added value manufacturing, innovation, and human capital”, stated Ilze Indriksone, Minister of Economics. A program that sounds like the antidote to recession threats.
This year, 20 investment projects have already been approved with the direct participation of the Investment and Development Agency of Latvia (LIAA). The projects will create 1160 workplaces and reach 371.5 million euros in investment. In 2022, 40 investment projects were carried out, creating 2398 workplaces. The attracted investment will amount to at least 473 million euros.
The investment projects launched represent sectors such as biotech, ICT, photonics and smart materials, smart energetics and mobility, and biomedicine. 12 of the investment projects launched this year will be implemented in Riga and the Riga suburbs, six in the region of Kurzeme, and two in the region of Latgale.
The government is working on initiatives to attract strategic investors, thinking both about improving the regulatory framework and removing bureaucratic obstacles, as well as about boosting the country’s image and competitiveness.
“The good news is that despite the threat of recession, investor interest has not decreased, and projects are being implemented. The so-called Green Corridor regulation, which aims to remove administrative barriers and speed up investment projects, will be key to strengthening our position in attracting investment. The large investment program, which can attract up to 10 million euros in capital discounts for new investment projects, also makes an important contribution”, said Kaspars Rožkalns, Director of LIAA.
Investors have also pointed out the most important obstacles to increased investment in Latvia’s economy – the still unclear situation with energy prices, attracting qualified specialists from abroad, wage taxes and banks’ loan policies.
In this scenario, over the next ten years, EUR 509.8 million will be invested in the Latvian electricity transmission system, of which EUR 135.8 million will be financed by EU funds, said AS “High Voltage Network” on July 18.
Arnis Daugulis, the company’s board member, said that fundamental changes are being made to the infrastructure and management technologies of the network, which will be fully prepared for synchronization with continental Europe by 2025.
“Disconnection of the Latvian electricity supply system from the Russian and Belarusian-controlled network is a key condition for ensuring Latvia’s energy independence”, said Daugulis.
There is also a gradual modernization of the transmission network by setting up new anti-emergency automatic equipment and improving the commercial accounting of international interconnection electricity and the transmission management system.
In order to complete the major infrastructure and ICT projects of the Synchronization Project, it is planned to invest EUR 188.8 million, according to the Latvian Transport Commission’s plan for the development of the Latvian transmission system for 2024-2033.
By 2033, EUR 21-30 million is planned to be invested annually in the reconstruction of 330 kV and 110 kV substations, lines, and distribution points, thereby ensuring the sustainable functioning of the transmission system, the continuous electricity supply of the connected users to it to the extent required.
The Latvian transmission system development plan also looks at the dynamics of the connections of renewable energy power plants to the electricity transmission network, as well as forward development projects in the offshore Baltic Sea region, including potential interconnections between Latvia – Sweden and the Baltic – Germany, which would in future be able to secure the export capacity of electricity produced in Latvia.