Reconstruction of the Daugava HPPs chain aims at replacing the hydropower units of the Riga HPP until 2022 by investing approximately EUR 13 million per year. The offer of the French power company Alstom AS has been identified as the most economically advantageous within the Latvenergo AS procurement for reconstruction of the Riga Hydroelectric Power Plant.

Daugava HPPs are the most important power facilities in Latvia, and Latvenergo AS is currently investing 200 million euros in their complete reconstruction. Replacement of all hydropower units is expected to yield economic benefits to Latvia for at least the next 40 years due to the increased capacity and efficiency of power generation. The outdated hydropower units are projected to be completely replaced at all plants by 2022. The final outcome of this extensive work will be the renewal of obsolete equipment and increased operational safety and efficiency of the HPPs, resulting in an electricity generation growth rate of at least 2% to 4% compared to before the reconstruction. Currently, the first stage of the hydropower unit reconstruction programme is underway: almost 20 million euros were invested within the framework of agreements until 31 December 2014.

“Reconstruction of the entire chain of the Daugava HPPs is an ambitious project implemented by Latvenergo that will bring high added value for the whole Latvian society and the economy in the long term. The Riga HPP is of strategic importance in the field of electricity supply in Latvia, and as a result of the reconstruction we will be able to increase the HPP efficiency and enhance the safety of the operation for the next decades,” Māris Kuņickis, Chief Operating Officer at Latvenergo AS, points out.

The extensive reconstruction of the Riga HPP is aimed at renewing the obsolete equipment, increasing their operational reliability and significantly enhancing the efficiency of the HPP. The HPP performance characteristics will be improved already during the reconstruction process, while after the reconstruction the annual electricity production at the Riga HPP will increase by approximately 20 GWh compared to before, which corresponds to the yearly consumption by a town of the size of Bauska. The objective of the reconstruction project is to provide safe, efficient, sustainable and competitive operation of the Riga HPP in the overall electric power system on the free electricity market. It is scheduled to completely replace the hydropower units at the Riga HPP by 1 April 2022.

In March 2014, the regulation of the procurement tender called for by Latvenergo AS was obtained by 26 merchants, of which 11 made a field visit to the Riga HPP. The final offer was submitted by 3 qualified applicants recognized in the industry:

1. CONSORTIUM ANDRITZ HYDRO GmbH;

2. CONSORTIUM Voith Hydro GmbH & Co. KG un Voith Hydro AB;

3. ALSTOM Hydro France.

The winning applicant is Alstom Hydro France (France) whose offer meets all the technical and commercial conditions of the tender; furthermore, the applicant offers equipment with high technical performance. The estimated contract amount is up to EUR 105,381,000 without VAT.

Engineering advice regarding the reconstruction of the hydropower units of the Riga HPP is provided by Sweco International AB (Sweden) that was selected in the open negotiation procedure in 2014. The company consults on the project planning process, and during the reconstruction work it will monitor the implementation of the work on site together with technical experts from Latvenergo AS.

“Providing equipment for a fourth of the world’s hydroelectric power plants, Alstom has accumulated extensive experience in the evaluation, maintenance and modernization of power plants. The solution proposed by us confirms that we assume full responsibility for the project implementation and will use our experience and knowledge to carry out the reconstruction work in the most safe and efficient manner, reducing the downtime of each unit,” Eric Staurset, Alstom Director Nordic & Baltic, emphasizes.

Repairs can only be conducted in the periods between seasonal floods, and only one hydropower unit may be reconstructed in one year. The reconstruction of the Riga HPP hydropower units provides for replacement of water turbines, generator stators and rotor pole insulation, as well as installation of a new management system. The scope of reconstruction differs for each unit and the works will be a complex process, as some parts of the unit will be kept for re-use.

The three largest hydroelectric power plants in the country – Pļaviņas HPP, Riga HPP and Ķegums HPP – generated a total of 2852 GWh of electricity in 2013. The electricity produced by the Daugava HPPs constitutes 50% of the total electricity output in Latvia. In 2013, the Riga HES generated 679 GWh of electricity.

About Latvenergo

Latvenergo Group is a pan-Baltic energy company, engaging in electricity and thermal energy generation and supply, electricity distribution services and management of transmission system assets. Latvenergo Group holds one-third of the entire Baltic electricity market, thus ensuring its leadership in the Baltic electricity supply. Latvenergo AS has been acknowledged as the most valuable company in Latvia for several years in a row. International credit rating agency Moody’s has assigned Latvenergo AS an investment-grade credit rating of Baa2/stable.

Latvenergo Group includes the parent company Latvenergo AS (electricity and thermal energy generation and supply) and its subsidiaries Latvijas elektriskie tīkli AS (management of transmission system assets), Sadales tīkls AS (electricity distribution), Elektrum Eesti OÜ (electricity  supply in Estonia), Elektrum Lietuva UAB (electricity supply in Lithuania), Enerģijas publiskais tirgotājs AS (administration of electricity mandatory procurement process) and Liepājas enerģija SIA (electricity and thermal energy generation and supply), as well as Elektrum Latvija SIA (electricity supply), a subsidiary of Elektrum Eesti OÜ.

         Additional information:
         Ivita Bidere
         Latvenergo AS
         Press Secretary
         Phone: +371 67728809
         E-mail: ivita.bidere@latvenergo.lv
         www.latvenergo.lv