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Investor Presentaiton

. • • 3 LATVIA IS INTEGRAL PART OF SINGLE EU POWER MARKET. NO ELECTRICITY IMPORTED FROM RUSSIA Latvia has diversified power supply and has strong focus on energy security and renewables Latvia can operate independently from Russia electricity supply From May 22, 2022 there are no electricity imports from Russia, just parallel synchronisation and system stability operations Large amount of electricity generated in hydropower plants, and gas reserves provided by «Latvenergo» can be used for flexible and dispatchable production of electricity and heat in power plants to balance growing capacities of renewable energy sources The Baltic region is connected to European power system with four powerful interconnections. In case of sudden disconnection from BRELL¹ system, emergency synchronization would be immediately ensured Latvia energy mix 2021 1 ■Solids 21 10 41 33 ■Natural gas Renewables and biofuels* ■Oil and petroleum products Other * As per operational data, in 2022 Renewables and biofuels increased to 43.45%, verified statistics will be available on Source: Eurostat Latvia gross final energy consumption in 2021 42% Renewables 58% Other Latvia is among the greenest electricity producers in EU - 64% of actual electricity was generated from renewables in 20212 ☑ Rm 3rd highest overall share of gross final energy consumption from renewable sources among EU countries in 20213 6th largest share of renewable electricity production among EU countries in 20214 ¹BRELL: Belarus, Russia, Estonia, Latvia and Lithuania 2 Source: https://energy.ec.europa.eu/system/files/2022-10/LV_2022_Energy_Snapshot.pdf 3Source: https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Renewable energy_statistics 4 Source: https://ec.europa.eu/eurostat/databrowser/view/NRG_IND_REN/default/table?lang=en Way forward 1990: focus imported electricity and on gas as a main source of electricity and heat generation 2020: diversification among hydropower, wind, solar, biomass and other renewables, the share of all together reaching 42% of gross final energy consumption in Latvia 2050: continue to use hydropower, wind, solar, biomass, but fossils are replaced with other renewable (potentially including hydrogen) Full synchronization of Baltic power system with European Continental Network by 2025. Full independence from Russia Several large investment projects planned, for example: • • ELWIND offshore wind farm project between Estonia and Latvia (planned to be implemented by 2030) Latvenergo and Latvijas valsts meži (state-owned land managed) in a joint onshore wind parks project (planned to be implemented by 2030)
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