Experts Urge Broader Use of EU Funds for Digital Solutions

IoT solutions are rapidly being adopted in Latvian companies and will become a significant part of digital transformation in the coming years. These technological tools help optimize resources, reduce costs, and provide sustainable solutions. Experts emphasize the importance of evaluating the initial results and efficiently planning the use of European Union funding in the future.

Access to digital solutions and funding are crucial aspects for investing in the implementation of various technological solutions to increase a company’s competitiveness, emphasizes Ilze Lore, Director of the Entrepreneurship Department at the Ministry of Economics. Internet of Things (IoT) solutions offer companies the ability to remotely monitor resources, optimize processes, and avoid costs caused by manual errors. These digital technologies also provide solutions that help companies improve security while significantly reducing expenses.

“The Internet of Things is not just a technological innovation – it is an economic tool that helps companies turn costs into efficiency by managing resources smarter and at lower costs,” says Kaspars Egliņš, IoT Business Manager at Latvijas Mobilais Telefons (LMT). LMT’s IoT network allows monitoring of various systems, such as water and electricity meters, heating regulation, and building security sensors, helping prevent losses and reduce expenses.

With Internet of Things (IoT) solutions, companies gain the ability to access critical data in real time and automatically identify potential problems, such as water leaks, freezing risks, or flow anomalies, thereby preventing larger losses. Data is stored in Latvia, ensuring both fast access and compliance with the highest security standards.

Such solutions have already been successfully implemented in municipal companies like Rīgas siltums, Valmieras ūdens, Mārupes komunālā saimniecība, Kuldīgas komunālie pakalpojumi, and others, helping optimize resources and reduce operational costs.

“IoT solutions that combine low energy consumption with easy integration allow companies to achieve rapid cost savings and sustainable operations. For example, An Post in Ireland, using IoT technology, reduced infrastructure maintenance costs and recovered investments in just nine months,” adds Ēriks Brisets, CEO of 0g Baltics.

To support the digital transformation of companies, the Ministry of Economics offers five Recovery Fund (ANM) support programs with a total funding of €174 million. “Company response to technology and software purchases, as well as the development of new products, has been high. We also encourage other companies to take advantage of the opportunities offered by ANM to increase their competitiveness,” emphasizes the Director of the Entrepreneurship Department at the Ministry of Economics.

Broader adoption of IoT and digital technologies helps companies not only reduce costs and strengthen competitiveness but also contributes to achieving climate neutrality goals. “Digital technologies significantly reduce emissions and support climate change mitigation. They are used as a tool to reduce carbon footprints, promoting sustainable infrastructure such as green data centers,” notes Armands Gūtmanis, Head of the Swiss Chamber of Commerce in Latvia. 

He adds that by 2050, digital technologies could reduce emissions by 20% in the energy, materials, and mobility sectors, making them a key ally in achieving climate neutrality.