Experts: Solutions Needed for Faster Development of the Charging Network

To develop the electric vehicle (EV) charging network in Latvia, equipment manufacturers, installers, grid developers, municipalities, building owners, and property managers face numerous challenges and questions that will need to be addressed in the near future, as the use of such vehicles is rapidly increasing, concluded the participants of the seminar “Integration of Electric Vehicles into Power Grids and Buildings.”

“In Latvia, over 60% of people live in apartment buildings, where installing electric vehicle (EV) charging points will be a major challenge. To promote faster EV adoption and the deployment of charging infrastructure, strong cooperation between companies and municipalities will be necessary. Currently, the proportion of EVs in Latvia is minimal, so considering the European Union’s targets, much faster growth is needed. To promote that, regular coordination of actions and opinions will be essential,” emphasized Armands Gūtmanis, founder of the Latvian Climate Neutrality Cluster 2050, at the seminar.

As the number of electric vehicles grows and the charging network develops, changing user habits will be a key task, highlighted Gatis Arājums, Head of Product Development for the Baltic States at Schneider Electric: “Latvia already has many fast-charging networks, but in practice, users most often charge their vehicles where they stay the longest—at home, at work, or near shopping centers. It is also very important to educate residents on which charging equipment is suitable for home use. A critical issue will be, for example, how to account for charging an EV in an apartment building for each resident or visitor.”

“Schneider Electric” manufactures part of its charging equipment in Riga, and the company aims to produce and test all equipment in Latvia’s capital starting in 2024. Currently, the factory is undergoing expansion, a company representative reported.

Kārlis Mendziņš, head of the charging network operator “Eleport Latvia,” explained at the seminar that the company faces four major challenges: establishing connections, charging infrastructure placements, charging solutions, and public awareness.

“Although Latvia overall has sufficient capacity, there are certain locations where establishing connections is challenging, for example, when planning charging points outside urban areas. When choosing a location for a charging point, several important factors must be considered, such as, in shopping center parking lots - the distance from the entrance, the parking lot layout, and the width of parking spaces. Regarding the charging solution, the preferences and habits of potential users must also be taken into account. Providing convenient payment options is crucial; therefore, the company plans to enable payment by credit and debit cards in the near future. To dispel myths and doubts about EV charging among the public, we place great emphasis on education,” the company director noted.

Speaking about the ability to respond to a rapid increase in demand, Gunārs Valdmanis, Head of Department of Energy Market at the Ministry of Climate and Energy, expressed confidence that Latvia’s energy system is ready to handle the increased consumption generated by electric transport. He explained that historically, Latvia’s electricity grids could support consumption of around 10 terawatt-hours per year, while current annual consumption has stabilized at 7.3 terawatt-hours. The actual network load is well below the nominal capacity it can reach, so the existing infrastructure is sufficient to meet demand. At the same time, the growth in electric vehicle usage is not so rapid that the infrastructure cannot keep up.

As the use of electric transport grows, municipalities need to address the provision of public charging points. Jānis Andiņš, Chief Project Manager for Transport Planning at the Riga City Development Department, reported that the development of Riga’s electric transport charging network concept is nearing completion. Considering projections for electric vehicle numbers, the city aims to provide 3,400 public charging points by 2030 and 10,800 by 2035.

“The municipality plans to develop 15% of all charging points on streets, with the remainder in lots, for example, near shopping centers or parking areas. Charging points will be located both in the city center and in surrounding neighborhoods, but public charging locations will not be provided in Old Town (Vecrīga). Overall, there will be fewer charging points in the city center and more outside the center,” the Riga City representative explained.

There are several scenarios for the development of public charging infrastructure in Riga. One scenario is for the municipality to hold an open tender for the installation of charging points at designated locations. Another scenario involves the municipality developing its own charging network, though this approach has several drawbacks. To encourage the development of public charging points on private land, options under consideration include offering property tax reductions or subsidies for the installation of slow charging points, Jānis Andiņš noted.

Lauris Andžāns, Project Manager at “Sadales tīkls,” reported that the company is implementing a project for establishing connections for electric vehicle charging, open to municipalities, government institutions, and companies. The total funding amounts to €5 million, provided by the European Union’s Recovery and Resilience Mechanism. The project covers the entire country and aims to install over 2,000 connection points for electric vehicle charging. “Sadales tīkls” handles the design and construction of connection points, while project participants are responsible for installing the charging infrastructure in cooperation with service providers.

Regarding funding opportunities, Viktors Toropovs, Head of Sustainability Development at SEB Bank in Latvia, emphasized that banks are increasingly focusing on supporting companies’ transition to climate-friendly operations. He noted that Latvia lacks a motivating regulatory environment to encourage businesses to go green.

“The Financial Sector Association will, in the second half of the year, present questions that banks will pose to companies to evaluate their sustainability based on environmental, social, and governance (ESG) criteria. Any company that improves its environmental impact—for example, by purchasing electric vehicles or installing EV charging points at its premises—will have concrete facts to demonstrate. A lack of responses from clients could make it harder to obtain financing from banks. This is a general trend in the banking sector,” explained the SEB Bank representative.

Statistics show that there are currently around 4,500 electric vehicles in Latvia out of a total of more than 700,000 vehicles. According to forecasts by the Latvian Automobile Association, there will be approximately 60,000 electric vehicles in Latvia by 2030.

The seminar “Integration of Electric Vehicles into Grids and Buildings” was organized by the Latvian Climate Neutrality Cluster 2050 and the Latvian Renewable Energy Federation. It was the fourth event in the discussion series “More Renewable Energy, Less Emissions!”