The European Investment Bank (EIB) said it is lending Latvian energy utility Latvenergo AS €200 million to upgrade the country’s electricity distribution network.

The EIB said that state-owned Latvenergo AS will use the EIB credit to make the electricity-distribution system more efficient and more capable of delivering clean power.

“This project, due to be completed by the end of 2026, will add digital features to the network, improve the dependability of electricity supply for the almost 1.9 million customers and contribute to the European Union’s fight against climate change,” said the EIB.

EIB Vice-President Thomas Östros said: “Modernising Latvia’s electricity-distribution network is important both for the climate and for energy security.

“This project will significantly boost the reliability of electricity supply for the country and accelerate the integration of renewable-energy sources into the energy mix, paving the way for a sustainable and resilient energy future. The EIB is glad to be able to support Latvenergo in this transformative endeavour.”

The EIB said its financing offers Latvenergo favourable terms – including flexible disbursements and a longer duration – compared with market alternatives. The support is expected in turn to attract more long-term financing for Latvenergo and strengthen its green credentials.

The credit marks the seventh financing accord between the EIB and Latvenergo.

“We are investing to promote energy sector transition to renewable resources and in modernisation of distribution network to make a significant contribution to the economy of the country,” said Guntars Baļčūns, Member of the Management Board of Latvenergo AS.

“These targets require significant financial resources, and the EIB provides access to competitive funding that supports both business and climate objectives. Our successful cooperation with the EIB has continued for more than 25 years, and this loan will allow us to use the resources we invest in solar and wind parks more efficiently.”