INVEST
€ 3 230
raised
€ 10 000
goal
10.00%
rate
6 MONTHS
duration
project type
Monthly
% distribution
Commercial pledge
collateral
PJ Serviss SIA
borrower
50
days left
€ 8 000
MIN amount
Overall risk level
B
B
Financial health
B
Management
A
Company’s record
CALCULATOR
LOAN AMOUNT
RETURN
+
INTEREST
%
DURATION
M
Wind energy development
Wind energy development

The Company is with more than 10-year experience in construction and reconstruction of premises. As the energy prices rises, the Company is eager to research the effectiveness of wind energy production in Riga on the top of premises in different locations. The Company have a client who will install wind turbines to increase energy independency.





INVEST
€ 3 230
raised
€ 10 000
goal
10.00%
rate
6 MONTHS
duration
project type
Instantly
% distribution
Commercial pledge
collateral
PJ Serviss SIA
borrower
50
days left
€ 100
MIN amount
Overall risk level
B
B
Financial health
B
Management
A
Company’s record
learn more how we grade our projects


ANALYST SUMMARY

The Company is evaluated with a grade B. There is no doubt that the Company has been successfully operated in real estate development and reconstruction and have had a stable turnover, however, the management of the company should invest some time to step in wind energy sector, especially, as there have not been wind park construction during at least the last 10 years.

GENERAL INFORMATION

·         The Company was founded in 2013

·         Its main economic activity according to NACE is 68.32, Management of real estate on a fee or contract basis

·         Latvia has a great wind energy potential as the annual average wind speed is similar to other EU countries

·         However, there has not been developed any wind farms for the last at least 10 years

SWOT ANALYSIS
STRENGHTS
- Sustainable energy source

- Is cost effective and cost certainty – once constructed, the running cost is minimal

- Can be located offshore

- Takes less space if compared to solar farms or hydroelectric stations
WEAKNESSES

- The volume of generated electricity depends on the speed of wind -

- Noise pollution, although in absolute terms, the noise generated from wind turbine is low compared to other noise pollutions

- High initial investment, although the running costs are low.
OPPORTUNITIES
- Possible government subsidies or benefits
- Further technology improvements
THREATS
- Endanger the wildlife
- Legislation and other bureaucratic processes that complicate construction of wind farms


COMPANY’S FINANCIALS


The Company has a turnover of EUR 35 – 42 thousand a year. According to the information provided by the management, in 2021 the Company’s turnover will be at the same level as in 2020.



OUTLOOK OF LATVIA

Nowadays availability of electricity and energy itself plays a major role in economic growth and even wellbeing for individuals. Therefore energy has always been an important part of state policy. It is hard to imagine, if the electricity will become a deficit and for one day individuals and companies should operate without electricity.


Renewable energy sources have been a major topic in the developed countries, especially European Union which aims at becoming climate-neutral by 2050. These plans (higher co2 quotas) and later sanctions against Russia to stop the war in Ukraine have been a reason that energy prices have skyrocketed during these past months. By taking it into account the companies and individuals have started to more and more think about becoming energy and electricity independent.


The net electricity consumption in Latvia in 2021 was 7 382 226 MWh of which 75,9% was produced locally. Hydroelectric power plants on river Daugava and thermal power plants have historically been the largest electricity generation source producing 47% and 34% of total electricity. However 34% of electricity is produced in thermal power plants using imported fossil energy – natural gas, thus the Latvian electricity independency rate could be considered as only 50%.


Wind energy has been considered as the most established and as efficient renewable energy source. The potential in Latvia of wind energy is estimated 1,5 TMWh, however, at the moment wind installations are totalling to 78.6 MWh and this number hasn’t changed over the past 10 years or more. In comparison in 2019 Germany had installations totalling to 53 600MWh and Spain 25 800 MWh. Average annual wind speed at the western coast is 7 m/s being similar to the wind conditions in Germany and Spain where the density of wind parks is the highest in Europe. The plan for Latvia is to increase wind energy production to 1 100MWh until 2030. Therefore there we see a high potential and most probably the government should offer aid to reach this goal.


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