Electricity price trend in Latvia
Your business consumes well over 500 MWh per year and the growing price of electricity is creating a material impact.
Looking at NordPool price you may have wondered if, having reached 300 EUR/MWh, it will ever go back to the level of 2020 when it was on average 34 EUR/MWh?
When will the price go down?
Well, consider this. Latvia did have an energy deficit of 2403 GWh during H2 2021 and H1 2022.
For many to replace gas heating will cause electricity usage to go up several times (depending on solution). So total electricity demand in Latvia is forecasted to grow for many years to come.
There have been utility-scale solar park announcements but these constitute just a few % from total energy consumption in Latvia.
Are solar panels profitable for industrial use in Latvia?
If they were, why is not everyone doing it? You guessed it right, it really depends. The following can make or break the business case:
- panel azimuth & tilt angle combination
- energy use pattern
- correct size of system
- a good deal on panels & installation
- condition of the roof, it shall last as long as panels ;)
It takes long-term capital (payback 4-6years) and it will likely take away part (not all) of your energy bill. It is a delicate balancing between keeping investment per self-consumed kWh as low as possible and reducing your energy bill as much as possible.
The new law on energy communities will add additional opportunities (and complexity) for businesses to co-operate on purpose to balance production with consumption via the grid.
Do you need someone to look into your situation?
If we are to work together there is one thing I want to tell you right from the start! I AM ON YOUR SIDE. I am not a supplier, not someone looking to sell you as much as possible. You can say I am your co-founder for the solar project! How is that?
I will co-invest. You can choose what share of the total project you want to finance, I will take the rest. As your co-investor I will lead the project, perform modelling and calculations to arrive at optimal solution, organize (fully transparent and neuitral) tenders for panels & installation. And as your co-investor I want what is best for the business case of the solar system we are creating.
For the last 16 years I have been creating new services for Swedish mobile operator Tele2 in Latvia, Lithuania and Sweden, mostly in the role of Products Director for Tele2 in Latvia. Together with my team we would start with an idea, lead it via financial calculations, compile functional requirements, oversee a technical solution and lead implementation & launch project. Honesty and transparency are hallmarks of Swedish business and that's how I work.
In my free time I have done R&D for robotic large scale printing using cement and gypsum ingredients.
I firmly believe that technologies related to climate, sustainability, robotics and AI will have the most impact on how our life will change in the next 20 years. Increasingly many businesses are demonstrating that climate-friendly products and practices can be profitable.