Latvian Power Grid Invests €182.85M in Network Development & Renewable Energy Integration in 2025

Latvia’s transmission system operator, AS “Augstsprieguma tīkls” (AST), invested €182.85 million in 2025 in the development of its electricity transmission network, strengthening energy supply security and the availability of transmission services. A significant portion, €90.84 million, was allocated to projects related to synchronization with the European grid, according to recently published unaudited reports for 2025.

The investment also included €16.7 million for the reconstruction and modernization of substations and transmission lines, and €51.07 million for the creation of connections for new solar and wind power plants, as well as battery energy storage systems (BESS), financed by developers.

“In 2025, we implemented significant measures related to energy independence and security – the synchronization of the Baltic energy grid with Europe. All infrastructure projects related to synchronization, worth more than €90 million, have been completed,” stated AST Chairman of the Board Rolands Irklis. “We have also strengthened cybersecurity and built new connections to the transmission network for the integration of renewable resources.”

AST’s profit increased from €14.76 million in 2024 to €17.75 million in 2025, largely due to dividends received from its subsidiary, “Conexus Baltic Grid,” totaling €13.34 million. Net turnover reached €264.26 million, including €94.19 million from electricity transmission network services, a 0.6% increase compared to 2024. The volume of electricity transmitted to Latvian consumers increased by 1.7% in 2025, reaching 6,118 GWh.

The Public Utilities Regulatory Commission (SPRK) has authorized AST to use accumulated revenue from congestion management for covering transmission system service costs, up to €62.1 million by the end of 2025. In 2025, €45.45 million was used for this purpose, including for balancing capacity.

Looking ahead, SPRK has approved AST’s electricity transmission tariffs for the next three years, starting in 2026, ensuring tariff competitiveness in the Baltic states and long-term stability. Tariff reductions vary by user group, with household users experiencing no change in transmission costs.

AST has concluded 31 agreements for connecting renewable energy power plants to the transmission network, with a total reserved capacity of almost 3000 megawatts (MW). Five new substations were completed in 2025 to facilitate these connections: “Marientāle” in Rēzeknes municipality, “Vārme” in Kuldīgas municipality, “Nīzere” and “Rūtiņi” in Bauskas municipality, and “Bāliņi” in Krāslavas municipality. Four additional connections were established at existing substations – “Tārgale”, “Rīgas TEC-2”, “Brocēni” and “Krustpils”.

AST also continued work on new interconnections with neighboring electricity transmission systems, including an environmental impact assessment for a new 330 kV transmission line “Ventspils–Brocēni–Varduva” and preparatory studies for the construction of a fourth Latvia-Estonia interconnection using a submarine cable.

The company’s subsidiary, “Conexus Baltic Grid,” reported revenue of €48.25 million in its natural gas transmission segment in 2025, with a profit before corporate income tax of €6.62 million, a 66% increase compared to the previous year, largely attributed to asset revaluation in 2024. However, revenue in the natural gas storage segment decreased by 31% due to reduced capacity reservations.

AST Group’s net turnover in 2025 was €354.08 million (compared to €258.61 million in 2024), and net profit increased from €22.67 million in 2024 to €27.51 million in 2025. The AST Group consists of AST and its subsidiary, “Conexus Baltic Grid,” in which AST owns 68.46% of the shares.