Energy Efficiency and Renewable Energy Sources in Latvia

1
Energy Efficiency and Renewable Energy Sources in
Latvia

• Inguna Ozolina
• Latvian Investment and Development Agency

2
Content of presentation

• Involved State institutions
• Primary energy consumption tendencies
• Indexes and energy intensity
• Energy efficiency
• Energy legislation
• Renewable energy
• Supporting finantial mechanisms

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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

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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

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Primary Energy Consumption, PJ(by types of fuel)
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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

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Economics Energy Environment (20001)
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Indexes and energy intensity
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Household consumption expenditure - housing,
water, electricity, gas and other fuels
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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.

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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)

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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

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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

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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

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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

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Tendencies for green electricity in Latvia
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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)

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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

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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

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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

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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

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• Thank you for attention !!!
• Inguna Ozolina
• Latvian Investment and Development Agency
• Energy Department
• inguna.ozolina_at_liaa.gov.lv
• Tel [phone]
• Fax [phone]