Latvia updates its regulatory model for direct power lines
As of 1 January 2026, permits for direct electricity lines (private lines connecting a generator directly to a consumer) are issued by Valsts vides dienests (VVD). Previously, this function was handled by the public utilities regulator.
The change follows the new Energy Market Law and an institutional reform under which the Energy and Environment Agency was integrated into VVD in late 2025. As a result, environmental, permitting and selected energy-related functions are now consolidated within one authority.
For investors, direct power lines are a key instrument for energy-intensive projects such as industry, data centres and renewable energy developments, offering more predictable pricing and reduced reliance on congested grids. Centralisation may streamline administrative procedures and simplify project coordination.
At the same time, the new model raises practical questions that will be clarified through implementation, including how system-level grid impacts are assessed, how cooperation with transmission and distribution operators is organised, and how responsibility is allocated in non-standard or emergency situations.
The first permits issued under the new framework in 2026 will be an important indicator of how these questions are addressed in practice. BSM © 2026
Image: photos/photo_145@06-01-2026_18-03-23.jpg