Energy Efficiency and

Renewable Energy Sources

in Latvia

Inguna Ozolina
Latvian Investment and Development Agency
 Content of presentation:
• Involved State institutions
• Primary energy consumption tendencies
• Indexes and energy intensity
• Energy efficiency
• Energy legislation
• Renewable energy
• Supporting finantial mechanisms
 Involved State institutions
Ministry of Economy:
– Energy department
– Building department
LIDA Energy department
Ministry of Environment:
– Department of Climate change and renewable energy
Environmental Investment fund
Ministry of regional development and self governments
– Housing agency
Public Utilities Commission
Strengthening of cooperation between institutions can
improve the development and implementation of energy
efficiency measures
 Primary energy consumption -
tendencies
• Natural gas, oil products and wood fuel – about
30% each
• Coal -1.6%
• Peat disappeared as a fuel, but biogas come in
sight
• The share of natural gas has grown by 1.7%, the
share of wood fuel by 1.9%
• Dependence on fuel import – 65%
 Primary Energy Consumption, PJ
(by types of fuel)
200 100% Imported Electricity

Hydro & Wind

150 75% Wood

Biogas

100 50% Natural Gas

35% 34% 34% 33% 36%
Oil Products & Shale
Oil
50 25%
Peat

Coal and other solid

fossil fuels
0 0%
Self-sufficiency
2000 2001 2002 2003 2004
How to decrease the dependence on
fuel import?
• Reduction of relative and absolute
consumption of energy by increasing of
energy efficiency
• By increasing the share of renewable
energy sources
Economics – Energy – Environment (2000=1)
2.5
GDP

TPES
2.0
Gross Electricity
Consumption
1.5 GHG emissions

1.0

0.5
1990

1992

1994

1996

1998

2002
2000

2004
 Indexes and energy intensity
TPES/GDP (toe/2000kUSD)
2.0 2
FEU/GDP (toe/2000kUSD)
GDP (2000=1)
1.6 1.6
TPES (2000=1)

1.2 1.2

0.8 Čehija 0.8

Polija

0.4 OECD 0.4

EU15
0.0 Japāna 0
1991
1992

1993
1994

1996

1998
1999

2001
2002

2004
Target in 2020
1990

1995

1997

2000

2003
 Household consumption expenditure -
housing, water, electricity, gas and other fuels

20 %
EU average

15

10

0
1996 1997 1998 1999 2000 2001 2002 2003 2004
Some aspects for energy efficiency
improvement (1)
The Latvian Parliament approved State Energy
Efficiency Strategy in 1998 (updated in 2004). The main
instruments mentioned in the strategy to increase energy
efficiency are:
– raising of awareness
– implementation of up-to-date standards
– encouragement of self-financing investments
through economic instruments
Main objective - identifying a set of measures to
increase energy efficiency to reach by 2010 the decrease
of primary energy consumption per unit of GDP by 25%.
Some aspects for energy efficiency
improvement (2)
Strategy of Energy sector development 2006-
2016 (under preparation):
- estimated potential for energy savings in
building sector – 40% - 60% (renovation of
building stock)
- Estimated potential for cogeneration in
district heating systems about 550 MWth
(maintenance and development of district
heating)
 What can help to improve the
situation?
• Transparent and economically justified/market base
prices signals - helps consumers switch to energy
efficiency
• Appropriate tax policy – encourage energy efficiency in
whole cycle for production of goods and services
• Government support programmes for low-income
population
• Raising of awareness by Public Information campaigns
(for different target groups, as students, business, etc.)
and by continual information on specific topics
• Promotion of “Green thinking” for majority of population
 Energy Legislation (1)
In force
• Energy law – amendments on energy efficiency
• Electricity market law – support for CHP and use of
RES
– Target - RES-E = 49.3% in 2010 – implementation of
Directive 2001/77/EC on the Promotion of Electricity
Produced from Renewable Energy Sources in the
Internal Electricity Market
 Energy legislation (2)
– Bio fuel Law
Mandatory target - 5.75% of total fuel
consumption must be bio fuel in 2010
– Law On Natural Resources’ Tax
– Law On Excise Duties (Harmonized
“Energy tax” – encouraging for CHP, RES,
energy efficiency)
– Regulations – CHP, RES-E, Reserves of
oil products, On energy efficiency
requirements for equipment, On limitation
of sulphur in fuels
 Energy Legislation (3)
Under preparation
– Strategy of Energy sector development 2006-
2016
– Low On Energy Performance of Buildings –
implementation of Directive 2002/91/EC on
the Energy Performance of Buildings
– New regulations on RES-E, CHP –
implementation of Directive 2004/8/EC on the
Promotion of Co-generation based on a useful
Heat Demand in the Internal Energy market
Tendencies for “green” electricity in Latvia
RES-E Technology 1997 [GWh] 2003 [GWh]
Biogas 0 18
Solid Biomass 0 4
Bio-waste 0 0
Geothermal el. 0 0
Hydro large-scale 2,951 2,213
Hydro small-scale 3 53
Wind on-shore 2.4 48
Total 2,955 2,336
Share of total consumption [%] 42.40% 36.26%
Estimated potential for Renewable
Energy Sources:
• Wood fuel – 44.5 – 82.5 PJ
• Biogas – 2 PJ
• Hydro – 10-20% increase
• Wind – 250 -1250 mill kWh
• Waste – 4.5 PJ
• Peat – 2387 PJ (for whole reserves)
 Barriers for “green” energy
development
• Unitary electricity tariff does not promote
development of RES-E sector
• Quotation system for renewable energy
capacity
• Very low level of annual quotation
• Bureaucracy and administrative barriers in
issuing of quotas
• Incomplete infrastructure
 What can help to improve the
situation?
• Decrease of administrative barriers
• Clear guidelines and advanced planning
for development of different types of RES
• Ensurance of fair accessibility to
electricity net for every electricity producer
• Improvement of infrastructure of electricity
network by net operator
Supporting Financial Mechanisms (1)
• EU Structural funds - Financial period 2004-2006
~ 7.8 mill euro – Modernisation of heat supply systems according
the environmental and energy efficiency demands (supply and
demand side)
~ 3.8 mill euro – Modernisation of heat supply systems by
reducing of sulphur content in fuel
• Public Investment Programm 2005
~ 0.808 mill euro (0.568 mill LVL) – Renovation of district heating
systems
• Public Investment Programm 2006
~ 10.0 mill euro (7.0 mill LVL) - Implementation of energy
efficiency measures and renovation of district heating systems
Supporting Financial Mechanisms (2)
Future plans:
• Strategy of Energy sector development - Public
Investment Programm 2007-2013
~ 3.84 mill euro each year - Implementation of energy
efficiency measures
• EU Structural fuds – Financial period 2007-2013
~ 29.97 mill euro – Improvement of building stock by
implementation of energy efficiency measures
• EU Cohesion fund – Financial period 2007-2013
~ 72.4 mill euro – Implementation of energy efficiency
measures and development of renewable energy
sources
Thank you for attention !!!
Inguna Ozolina
Latvian Investment and Development Agency
Energy Department
inguna.ozolina@liaa.gov.lv
Tel: +371 7039462
Fax: +371 7039401