Riga energy efficiency

Aģentūras un tās darbinieku misija ir nodrošināt inovāciju pārnesi, veidojot pilotprojektus pašvaldībā un iedzīvotāju izglītošana enerģētikas jomā, tiecoties uz enerģētikas sektora dekarbonizāciju.
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Aģentūras un tās darbinieku misija ir nodrošināt inovāciju pārnesi, veidojot pilotprojektus pašvaldībā un iedzīvotāju izglītošana enerģētikas jomā, tiecoties uz enerģētikas sektora dekarbonizāciju.

In Latvia’s capital, Riga, district heating company Rīgas siltums is charting new paths in sustainable heating. The Chairman, Ilvars Pētersons, delves into the company’s strategic direction amid the evolving energy landscape.

Pētersons and his management team are currently completing a ten-year strategy proposal for the heat energy provider and the final approval is expected by the end of September this year. In this interview, Pētersons gives some insights into the company’s future strategy and their perception of the way forward.

"The energy industry is undergoing a monumental transformation that offers numerous opportunities. These extend beyond enhancing our current operations and can lead to the emergence of entirely new sectors. We’re at the heart of an immensely important industry, and its potential should never be underestimated," says Pētersons.

Currently, half of the energy produced by Rīgas siltums is from renewable sources, and the plan is to increase this to 90% by 2030. The company provides two-thirds of Riga’s thermal energy, and it owns approximately 689 kilometres of the city´s 800 km wide heating network.

"We’re in the process of devising a new decade-long company strategy which we’ve termed the ‘energy exchange platform’. Originally established to generate and distribute heat, we now recognise a broader role we can play. For every megawatt hour produced, our goal is to obtain, rather than release, that energy into the atmosphere. We believe there’s always a customer in need of this energy, demanding a more holistic approach from a technological standpoint."

Across Europe, the influx of wind farms and photovoltaic projects has led to fluctuating electricity prices, presenting challenges for network operators. Amid these challenges, the company is currently exploring electricity and has plans to integrate electric boilers.

"Leveraging our central heating system, we can act as mediators, converting excess electricity into heat energy for our customer base. In doing so, we aim to help balance the ever-growing electricity demand," Pētersons says, adding: "In the current unstable energy market our distribution network is really a great asset."

Rīgas siltums has access to the only natural underground gas storage facility in Latvia and the Baltics. Historically, there was a strong focus on this, and alongside its heat distribution network, Riga has a well-developed natural gas distribution system.

"However, as we consider the sustainability challenges of natural gas, we’re now exploring the production of hydrogen and synthetic methane. This shift offers us the potential to evolve beyond just heating, allowing us to produce methane and integrate it into our existing gas networks. Our goal is to make customer connections greener across the region."

The proposed new strategy focuses on the company´s networks and heat production. The plan is to make a clear separation between these functions, so that its networks would remain under regulatory oversight, while opening its production to a more competitive market environment.

"Our long-term vision is to emulate the flexibility seen in the electricity market, allowing for spot pricing, dynamic rates, and more. Ideally, we’d want our customers to have choices, like sourcing heat from various energy retailers or opting for sustainably produced heat. While such a system isn’t yet operational in Latvia, our aim is to foster this kind of flexibility for the advantage of our consumers and the wider community," says Pētersons.

The company´s significant role in Latvia’s heating sector makes it crucial for them to provide stable tariffs to provide visibility for their customers. Responding to questions about the influence of last winter’s soaring energy costs on the company’s strategic direction, the chairman said:

“Indeed, the high prices served as a significant impetus. It’s clear that we don’t wish to find ourselves in such a situation again. This experience underscored the importance of diversifying our energy sources to minimise risks. It was a major factor in our decision to explore how we can evolve to prevent similar challenges in the future. We’ve also reevaluated our contracting methods for natural gas and wood chips. We’re proactively designing processes to better prepare for future uncertainties, aiming to mitigate risks as effectively as possible.”

About Riga energy efficiency

About Riga energy efficiency

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