Annual compensation of 2,500 euros is planned for municipalities and residents for each megawatt of wind turbines installed in new wind farms, Minister of Climate and Energy Kaspars Melnis (ZZS) said at a press briefing on the development of wind farms on Wednesday.
Compensation is planned to be paid to those households and municipalities that will be located within a radius of two kilometers around the wind turbines. Each turbine is expected to be between four and seven megawatts (MW).
At the same time, the compensation will not apply to wind turbines that have already been built.
Melnis explained that approximately 50% of the compensation amount will go to the residents and 50% to the municipality, while if there are no households in the vicinity of the installed turbine, then the compensation amount will go to the municipality.
However, “the most important thing is to ensure that the citizens definitely receive the compensation payment,” Melnis said.
Compensation will be available to residents who currently live in the areas where the turbines will be installed, while if someone plans to move to these areas, then this compensation will not be paid, explained Melnis.
At the same time, the ministry explained that the amount of compensation will have to be calculated for each individual, however, it will be at least the minimum monthly salary for the owner of the household, but no more than three minimum salaries. Accordingly, the remaining amount will go to the municipality.
Melnis emphasized that the administration of compensation could be taken over by the municipality.
The minister explained that the two-kilometer radius limit was determined after comparing the situation with the surrounding countries. Similarly, Melnis said that “some kind of border must be cut”.
At the same time, a fixed compensation amount was chosen so that it would be simple, clear and easy to explain to the citizens. On the other hand, if the compensable amount was assessed based on turnover, there would be uncertainty and instability, said Melnis.
It was also necessary to determine a specific amount to help investors in negotiations with residents.
It is currently stipulated that turbines cannot be installed closer than 800 meters from existing households.
Melnis also said that KEM is currently looking at how to avoid taxing the compensation. Although KEM does not plan to tax the compensation, the Ministry of Finance will also have its own vision.
The minister explained that currently the share of renewable energy resources in Latvia is 53%, while the European average is 41%.
On the other hand, in order to achieve 100% renewable energy intensity by 2030, approximately 1.5-2 gigawatts (GW) of wind energy are needed, which would produce an average of 3.6 to 4.9 terawatt hours (TWh).
Currently, the reserved capacity in the transmission network is 6040 MW, including 3582 MW reserved for solar energy, 1548 MW for hybrid energy, and 880 MW reserved for wind energy.
Melnis also stated that of the reserved 6040 MW of capacity, approximately 3000 MW could be developed in reality, however, it is currently unclear which planned parks will develop and which will not.
The ministry explained that the reservation fee for the 100 MW park was up to two million euros, however, if the parks are abandoned, the reservation fee will also be refunded.
Melnis also emphasized that the benefits of 100% renewable electricity are cheaper energy, investments, competitiveness for entrepreneurs, safety and independence.
“We cannot advance the society and the economy if we do not have cheap electricity. It is very important in the overall economy,” said Melnis.
KEM previously explained that in the near future the ministry will forward to the Cabinet of Ministers a report on the more efficient use of renewable energy resources.
