Why Latvia?
Baltic Renewable Energy – Latvia
Latvia is positioned for potential
Population:
Total EU 499.8
Canada/US 345.8
Population:
Russia
142.9
Ukraine 45.9
Belarus 9.5
Total East 198.3
Baltic Renewable Energy – Latvia
Latvia is the commercial hub of Northern Europe
• It is the financial centre of Northern Europe
• 23 banks
• the Luxembourg of the north
• Established traditions in
• banking,
• manufacturing,
• education and
• development
Baltic Renewable Energy – Latvia
Unique geographic location
• Geographic centre of Northern Europe
• Bridge between east and west with excellent ties both ways
• Key point of entry:
Canada/US > Russia, Ukraine, Belarus
Canada/US > EU
Russia, Ukraine, Belarus > EU
and Canada/US
EU > Russia, Ukraine, Belarus
• Why ??? –
because Latvia has the ONLY
ice-free ports
in the Baltic Sea
Baltic Renewable Energy – Latvia
Stable, predictable financial climate
• Considered a western state that must abide by EU regulations
Joined the EU and NATO in 2004
• 2010, government of Latvia initiated austerity programs as
demanded by the IMF
Stabilized economy which resulted in growth in 2011
• in December, 2011, Latvia was recognized as a good place to
invest by the International Monetary Fund (IMF)
• Shared values with North America and trust in Canadians
The Result – a favourable business climate
Baltic Renewable Energy – Latvia
History: Why then, why now?
What was then…
• A centre of commerce and industrial production for the
Russian Empire (before 1917) and the Soviet Union (1940 to 1990)
• A prosperous economy based on manufacturing (1918 to 1939)
• Gained independence in 1991 and converted from a planned economy
• Economic transition saw challenges from banking crises and economic
boycotts by Russia
• Saddled by unfamiliarity with western (particularly European) practices and
politically-related development issues
Baltic Renewable Energy – Latvia
History: Why then, why now?
What is now…
A financially and politically stable country
with a growing economy, an ideal location,
shared values with North America and
an infrastructure of chemical and pharmaceutical manufacturing,
that is driven by various
needs and conditions that favour business activity.
A market ripe for BRE
Latvia, the Baltic region and Europe offer unique business opportunities –
TPI’s expertise, unique background and connections are distinct advantages
*Effects of the Eurozone debt crisis must be considered. It is realistic to proceed on the basis of a
slower and less predictable growth rate than might be seen in other economic circumstance's
Baltic Renewable Energy – Latvia
Sustainable Development
Cogeneration
Energy from waste or biomass
From BRE
Baltic Renewable Energy – Latvia
The issues
• Latvia faces fines up to $110,000,000 for exceeding EU directive targets of reducing
waste sent to landfill
• Over-reliance on Russian gas and concerns about energy security and self-sufficiency
The opportunity
• Revenue comes from the sale of heat because of central municipal heating and
electricity with a unique electrical surcharge not available in other countries to
promote electrical production from renewable energy sources, the processing of
municipal solid waste and hazardous waste experiencing increasing gate fees,
environmental taxes and green credits
• Potential EU grants of over $26,000,000 apply to development projects
(10 plants, $200 million)
• Opportunities identified – start-up ready to go (a low-hanging fruit)
• Lead in to major development projects (the big opportunity)
Baltic Renewable Energy – Latvia
A powerful combination of factors
that drives the need for technology, expertise,
O&M contracts and equipment sales.
BRE Advantages
•
•
•
•
•
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Proprietary access to cutting-edge ATT technology
Professional, knowledgeable team, experienced with technical and political issues
Complete and viable business plan
Existing contract for one facility
Regional experience in cogeneration since 2007,
Current, reliable databases on technology suppliers, prospects and waste suppliers.
The entry
• Latvia has an approvals system that expedites implementation
• Favourable legislation for renewable energy projects
Baltic Renewable Energy – Latvia