Sadales tīkls explained why there was a decrease in electricity prices this year 0 11

According to him, this year, as well as last year, "Sadales tīkls" continued targeted investments in the power grid and the increase of renewable energy capacities, implementing not only annual capital projects but also utilizing funds from the European Recovery Fund.

Jansons pointed out that the resilience of the grid is increasing, and Latvia maintains the highest quality of electricity supply in the Baltics. Both the ambitious goals of electrification and the growing needs of customers, as well as geopolitical challenges, indicate the need for further investments in infrastructure. This is also reflected in the new plan of the European Commission, which provides for urgent and centralized modernization of power grids across Europe.

With the involvement of EU funds, this year, work continued on the reconstruction of power lines, replacement of transformers in various regions of Latvia, implementation of smart solutions, and other improvements. Among the most resource-intensive projects are the construction and reconstruction of 110/20 kilovolt (kV) transformer substations. Thus, with the support of EU funding, the substation in Valdemārpils has been reconstructed, and work has begun on the construction of a new substation in Launkalne, which is planned to be completed by mid-2026.

This will significantly improve the availability of capacities and the quality of electricity supply in the respective regions.

"One 110/20 kV substation requires investments in millions of euros, so it is important that we can implement such projects through external financing," noted Jansons.

He added that both the investments of "Sadales tīkls" and EU funds allow for an increase in the share of isolated, weather-resistant power grids, which is already approaching 70%.

An important role in improving the quality of electricity supply is played by clearing the routes of power lines from potentially dangerous trees and branches — over the nine months of 2025, more than 4,200 kilometers of routes have been cleared. All these improvements are already reflected in quality indicators — over the nine months of this year, the average duration of power outages per consumer (SAIDI) has decreased to 101 minutes, which is 42% less than in the same period last year. Also, this year, natural disasters spared the power grids — there were fewer serious natural phenomena. The grid is becoming more resilient, and weather conditions that were previously a serious challenge (for example, ice) now have significantly less impact.

Jansons noted that this year the company took a step forward in expanding technological competencies — based on experience in the digitalization of services, a combination of technologies has been developed that allows for automatic and remote reading of water meter readings. The offer of "Sadales tīkls" was selected in an open competition for the digitalization of water meters for the company "Rīgas ūdens", and now more than 1,000 input water meters in apartment buildings and private houses are equipped with remote reading devices.

"We are constantly looking for ways to develop, increase process efficiency, and diversify the revenue base. The year 2025 will also be remembered as the year of the first step into export markets," said Jansons, explaining that this autumn a pilot project was implemented for the supply of wooden poles produced by "Sadales tīkls" to the Estonian power grid operator — the company "Elektrilevi".

Interest in the company’s poles has also been shown by other partners in Europe, so plans are in place to continue the development of exports.

This year, "Sadales tīkls" also plays the role of coordinator for the initiative of State Innovation State Enterprises (VIKI). To strengthen the competitiveness of state companies, develop exports, and reduce bureaucratic burdens in the procurement sector, proposals have been submitted for amendments to regulatory acts. One of the key proposals is to supplement the Law on the Structure of State Administration with criteria that, while adhering to the principles of fair competition, would give state enterprises greater freedom of action in developing new areas, exports, and innovations. The second block of proposals is related to increasing the efficiency of public procurement.

Evaluating the achievements of 2025 in the energy sector as a whole, Jansons first noted the strengthening of energy independence — the synchronization with the unified energy system of Europe has been successfully completed, breaking the last ties with Russia and Belarus. In addition, the Ministry of Climate and Energy has done significant work on a new energy strategy for Latvia, defining priority areas for development.

"Industry players need to continue working together on a balanced state portfolio of energy resources and the coordination of production and consumption capacities," emphasized Jansons.

He pointed out that this year it became particularly noticeable that solar energy has reached saturation — more than 900 megawatts have already been connected to the distribution system, exceeding the summer peak loads in Latvia. The development of solar energy has occurred in just a few years — "Sadales tīkls" has prepared the grid in advance to accept such capacities and successfully manages them.

Also this year, the influence of increasing volumes of renewable energy sources on electricity prices was particularly noticeable — in the summer, the market price was often negative.

"Now Latvia should focus on the development of wind farms and base capacities. An important new player in the market will be battery energy storage systems (BESS) — we see that customers are increasingly choosing them, including in combination with electricity generation, for example, with solar panels," noted Jansons, adding that the share of BESS is rapidly growing, which will ensure less price fluctuation and lower balancing costs in the near future.

"Sadales tīkls" is part of the state concern "Latvenergo" and is responsible for the maintenance and development of the distribution electricity network in Latvia. The company ensures the operation, renewal, and planned development of the electricity network, monitoring of electricity consumption, loss reduction measures, electricity accounting, as well as the creation of new connections.