An investor identifies what appears to be a perfect industrial site: ample space, affordable land, and excellent road access. The initial business plan looks strong.
But six months later, the project is stalled. The cause: a simple but severe oversight. The nearest medium-voltage substation is several kilometers away, and the utility provider quoted an 18-month timeline and a seven-figure cost to establish a connection. It’s an unfortunately common and costly mistake for entrepreneurs entering the solar manufacturing industry.
Selecting a site for a 50–100 MW solar module factory isn’t a simple real estate transaction—it’s a technical due diligence process. The unseen infrastructure beneath the ground and along utility poles will ultimately determine the project’s feasibility, timeline, and budget.
This article provides a technical framework for evaluating potential industrial sites in Latvia, focused on three critical utility requirements: high-capacity power, purified water, and a stable grid connection. Understanding these elements is the first step toward building a successful manufacturing operation.
The Latvian Context: Why Infrastructure Due Diligence is Critical Now
Latvia is at a pivotal moment in its energy transition. Driven by EU renewable energy targets, the country’s National Energy and Climate Plan (NECP) aims to generate 2,747 GWh from solar by 2030—a dramatic increase from just 29 GWh in 2022. This ambition signals strong government support and creates a significant market opportunity for local module production.
To support this shift, the national grid operator (AST) is investing nearly €400 million to upgrade its transmission network, specifically to integrate more renewable sources. While this long-term investment is positive, grid capacity can still be a bottleneck, particularly in areas outside established industrial zones.
For an investor, this landscape presents both opportunity and challenge. Market demand is clear, but securing a site with adequate, ready-to-use infrastructure provides a distinct competitive advantage that can save millions of euros and shorten time to market by more than a year.
Essential Power Supply Requirements for a 50-100 MW Factory
A modern solar panel production line is a power-intensive operation. Key machines like laminators and stringers require a constant, substantial supply of electricity to function optimally.
Securing a 1.5–3 MW Medium-Voltage Connection
A factory with a 50–100 MW production capacity typically requires a continuous power supply of 1.5 to 3 megawatts (MW). This level of power is unavailable from a standard low-voltage connection and requires a direct link to the local medium-voltage (MV) grid, which in Latvia operates at 20 kilovolts (kV).
The site’s proximity to an existing MV substation is the single most important factor. A greater distance from a suitable connection point means higher costs and longer delays. In some cases, a dedicated transformer or a small substation may need to be built on the property—an expense that must be factored into the initial investment plan.
The Non-Negotiable Need for Backup Power
Power stability is as important as power capacity. A momentary power outage during a lamination cycle can damage the machine and ruin an entire batch of modules, resulting in significant financial loss. To mitigate this risk, a reliable backup power source, such as a set of industrial diesel generators, is essential to ensure production continuity.
Grid Connection for Module Testing
Beyond powering the factory itself, a separate, highly stable electrical connection is required for the quality assurance process. The ‘sun simulator’, a critical piece of solar manufacturing equipment, tests each finished module to certify its power output. This equipment is extremely sensitive to fluctuations in voltage and frequency. An unstable power supply can lead to inaccurate test results, potentially causing an entire production batch to be mislabeled or rejected.
Water: More Than Just a Tap
While not as power-intensive as other manufacturing industries, solar module production has specific requirements for water quality and purity.
Daily Consumption and Quality Standards
A 50–100 MW facility uses approximately 5–10 cubic meters of water per day. The vast majority is for washing the solar glass before lamination. Any mineral deposits, organic matter, or chemical residue left on the glass can compromise the bond between the glass and the encapsulant, potentially leading to module failure (delamination) years later.
Planning for On-Site Water Treatment
Municipal water sources do not meet the required purity standards, so an on-site water treatment and demineralization system is a standard component of a turnkey solar factory. Confirming the site has access to a reliable municipal water supply for input—and understanding the local environmental regulations for discharging the resulting wastewater—is therefore essential.
A Practical Due Diligence Checklist for Site Evaluation
Before committing to a site, an investor should seek clear answers to the following technical questions. This process often requires direct engagement with the local utility provider (e.g., Sadales tīkls) and municipal authorities.
Power Infrastructure:
- What is the exact distance and route to the nearest 20kV substation with available capacity?
- Has the utility provider issued a formal letter confirming the available capacity and outlining the technical requirements for connection?
- What are the estimated costs and a realistic timeline for establishing the grid connection?
- Is there sufficient space on the property to install a dedicated transformer, switchgear, and a backup generator system?
Water and Wastewater:
- Is there a connection to a municipal water main with sufficient volume and pressure?
- What are the local regulations and associated costs for industrial water use and wastewater discharge?
- Has the site undergone an environmental assessment to check for potential ground contamination from prior industrial use?
General Site and Logistics:
- Does the site’s official zoning permit heavy industrial manufacturing?
- Are the access roads capable of supporting 40-ton trucks delivering raw materials and heavy machinery, a core part of the overall factory building requirements?
The Cost of Getting It Wrong: A Common Scenario
The importance of this technical due diligence cannot be overstated. Experience from J.v.G. turnkey projects shows that errors at this stage can have severe consequences. One client in Eastern Europe, for instance, selected a site based on its low land cost, only to discover that a five-kilometer power line extension was required. The oversight added over €500,000 in unforeseen costs and an 18-month delay to the project, fundamentally altering its financial viability. A thorough assessment at the outset avoids such costly setbacks.
Frequently Asked Questions (FAQ)
Q: Can a solar factory be powered by its own rooftop solar panels?
A: While a large rooftop PV system can certainly supplement a factory’s electricity consumption and reduce operational costs, it can’t serve as the primary power source. Industrial machinery requires a stable, high-capacity power feed 24/7, which only a robust grid connection can provide for a solar panel production line.
Q: How long does it typically take to get a new industrial grid connection approved in Latvia?
A: Timelines vary widely based on the location and complexity of the required work, ranging from six months for a simple connection in a well-serviced industrial park to over 18 months if new lines or substation upgrades are needed. Early and frequent communication with the grid operator is essential.
Q: Are pre-developed industrial parks a better choice than standalone greenfield sites?
A: In many cases, yes. Established industrial parks often provide ‘plug-and-play’ infrastructure, with pre-approved, high-capacity utility connections available at the site boundary. This can significantly de-risk the project and accelerate the construction timeline. However, it’s still crucial to verify that the park’s available capacity meets the specific 1.5–3 MW requirement of the planned factory.
Next Steps in Your Site Selection Process
The viability of your solar manufacturing project is fundamentally linked to the technical specifications of its chosen site. Infrastructure due diligence should not be treated as a simple administrative task but as a core component of the initial business strategy.
For any serious investor, the next step is to compile this data into a formal feasibility study. A comprehensive study, often conducted with experienced consultants, validates these critical technical requirements against business goals and forms the foundation for a successful enterprise.
