Kristaps Muzikants, CEO of Ignitis Latvija
Interest in renewable energy solutions is growing among Latvian companies, despite various challenges related to their implementation. By continuing to drive technological innovations, implementing supportive state policies, and making green energy more accessible and financially advantageous, we will see significant changes in both consumer habits and business practices in the coming years.
To draw attention to this and other issues related to renewable energy, it is important to create opportunities for open discussions and promote the exchange of ideas and experiences. One way to do this is by participating in the Baltic Sustainability Innovation Award. By highlighting successful examples and achievements, and showing how green energy can contribute not only to the environment but also to the competitiveness of companies, we can encourage and motivate those businesses that are considering it but have not yet made a decision.
A mandatory component for maintaining competitiveness or an opportunity to reduce costs
When assessing the activity of Latvian companies in implementing green energy solutions in their business processes, we can divide them into three broad groups. The first group includes companies that are purposefully committed to adhering to the principles of sustainability, regardless of costs. These are often large international corporations and major market players who set an example for others. Due to regulatory pressure, the need to maintain competitiveness, corporate responsibility, and the demands of the export market, the implementation of environmentally friendly solutions is seen as a mandatory component for these companies.
The second group consists of companies that are willing to adopt sustainable solutions, but only if it is financially beneficial and if they do not have to pay extra for obtaining “green” certificates. So far, there have been few instances where prices have dropped low enough for this group to become more active. The third group includes companies that are not committed to using “green” energy solutions. Sustainability is not a priority for these businesses, and they are unlikely to pay attention to it unless external factors require it.
Carrot and stick
Currently, there are two main driving forces behind the adoption of green energy: the “carrot” and the “stick.” The “carrot” refers to the desire to be “green” because it is relevant, ethical, and increasingly expected by both consumers and investors. For some, this is sufficient motivation, but for others, the “stick”—such as higher taxes on fuel and natural gas, or regulatory pressure within both the European Union and Latvian frameworks—may provide a greater incentive.
Looking at trends in the use of green energy across the Baltics, we see that, for example, in Lithuania, state incentives are already making the choice of more sustainable solutions more financially attractive. Specifically, companies that obtain “green” certificates can enjoy tax breaks. In Latvia, no such system exists yet, and those who want to be sustainable are currently paying more. However, this situation is likely to change in the near future.
Technology makes using green energy more convenient
Technology and innovation will undoubtedly play a crucial role in promoting the availability of green energy. Its production is already experiencing rapid development, especially in the fields of wind and solar energy. At the same time, consumers are becoming more energy-literate, learning to use electricity when it is cheaper.
Another example is automated demand response. This smart energy management service provides an opportunity to participate in balancing the energy system and allows consumers to save money and generate additional income by smartly managing the load on the energy system and the electricity consumption of devices connected to it. In addition, it helps reduce CO2 emissions.
Interest in more environmentally friendly vehicles is also growing. We are currently expanding the Ignitis ON high-power electric vehicle charging network in Latvia and the Baltics. Charging stations are strategically placed near shopping malls, fast food restaurants, and similar locations that fit into people's daily routines, allowing them to combine fast charging of electric cars with shopping, dining, and other activities. Thanks to such infrastructure development, it is becoming easier for consumers to switch to more environmentally friendly modes of transport. In other parts of the world, electric vehicle charging centers are being actively developed, often located along transit routes for convenience during long-distance travel. Another potential direction for the development of charging centers could be residential areas, which would encourage apartment dwellers to buy electric cars, knowing they could quickly and conveniently charge their vehicles at home.
One thing is clear: the less effort it takes to introduce good habits, the more people will follow suit.
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