Construction, Energy, Investments, Latvia

The electric energy produced by the wind farm would not be sold on the Latvian market, nor in any other Baltic country; instead it would be offered to countries in the Central and Western Europe.

The company declined to comment on prospective investors.

It is estimated that such a large wind farm would require investments worth several billion lats: building one facility in the sea capable of generating one megawatt already costs around EUR 1.4 million, according to estimates by the Wind Energy Association of Latvia.

JK Energy director Juris Kajaks was also involved in construction of Latvia's largest onshore wind farm in Grobina by Liepaja. The later wind farm owners were for a long time affiliated with the family business of the People's Party founder Andris Skele.

"Seeing what people are involved in the project and knowing who are planning to return to the political elite in Latvia, I will not be surprised if the project is indeed brought to life," Aivars Upenieks, director of the company FCM, which is actively involved in wind energy projects, commented on JK Energy plans.

However, as Upenieks pointed out, the necessary investments are the project's weak point.

"One can plan on constructing such a wind farm, but it would be impossible to build in the near future due to lack of clarity regarding ownership rights in the Baltic Sea. Currently the state is the owner of the territory, and the Finance Ministry administrates this territory. Potential investors need territorial planning and wind velocity measurements carried out over a long period of time, which makes implementation of wind energy projects difficult," head of the Wind Energy Association of Latvia Paulis Barons explained.

He added that 900 MW is an amount of wind energy that the Latvian power network could absorb.