Imbalanced distribution of grid connection costs in Latvia

One of the grave problems in developing renewable energy projects in Latvia is the distribution of costs. In Latvia the costs of grid connection shall be borne by the plant operators, including the costs for grid reinforcement. An exemption from this rule shall apply only if there is a specific agreement between the grid operator and the renewable energy generator. Several stakeholders explicitly reported the costs for the development of the grid as one of the key barriers to the deployment and integration of renewable electricty in Latvia. Industry has reported that distribution is one of the main problems, which is further aggravated by unclear calculation and cost allocation processes. 

As of 2021, none of the interviewed experts flagged this particular issue. Although it remains true that they have to pay for the grid connection costs, project developers seem to face more serious barriers, such as the NIMBY effect.