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    P rimary Energy Consumption, PJ(by types of fuel)

    33%34%34%35% 36%

    0

    50

    100

    150

    200

    2000 2001 2002 2003 20040%

    25%

    50%

    75%

    100%

    Imported ElectricityHydro & Wind

    Wood

    Biogas

    Natural Gas

    Oil P roducts & ShaleOilP eat

    Coal and other solidfossil fuelsSelf-sufficiency

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    How to decrease the dependence onfuel import?

    Reduction of relative and absoluteconsumption of energy by increasing of energy efficiency

    By increasing the share of renewableenergy sources

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    Economics Energy Environment (2000=1)

    0.

    1.0

    1.

    2.0

    2.

    1 9 9 0

    1 9 9 2

    1 9 9

    1 9 9

    1 9 9 8

    2 0 0 0

    2 0 0 2

    2 0 0

    DP

    TP ES

    ross ElectricityCons m tion

    H emissions

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    Indexes and energy intensity

    0.0

    0.4

    0.8

    1.2

    1.6

    2.0

    1 9 9 0

    1 9 9 1

    1 9 9 2

    1 9 9 3

    1 9 9 4

    1 9 9 5

    1 9 9 6

    1 9 9 7

    1 9 9 8

    1 9 9 9

    2 0 0 0

    2 0 0 1

    2 0 0 2

    2 0 0 3

    2 0 0 4

    T a r g e

    t i n 2 0 2 0

    0

    0.4

    0.8

    1.2

    1.6

    2TPES/GDP (toe/2000kUSD)

    FEU/GDP (toe/2000kUSD)GDP (2000=1)TPES (2000=1)

    ehija

    P olija

    J ap na

    OEC D

    EU15

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

    average

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    Some aspects for energy efficiencyimprovement (1)

    The Latvian Parliament approved State EnergyEfficiency Strategy in 1998 (updated in 2004). Themain instruments mentioned in the strategy to increaseenergy efficiency are:

    raising of awareness implementation of up-to-date standards encouragement of self-financing investments

    through economic instrumentsM ain objective - identifying a set of measures to

    increase energy efficiency to reach by 2010 thedecrease of primary energy consumption per unit of GDP by 25%.

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    Some aspects for energy efficiencyimprovement (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 MW th

    (maintenance and development of districtheating)

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    What can help to improve thesituation?

    Transparent and economically justified/market baseprices signals - helps consumers switch to energyefficiency

    Appropriate tax policy encourage energy efficiency inwhole cycle for production of goods and services

    Government support programmes for low-incomepopulation

    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 (2) Bio fuel Law

    M andatory target - 5.75% of total fuelconsumption must be bio fuel in 2010

    Law On Natural Resources Tax

    Law On Excise Duties (HarmonizedEnergy tax encouraging for CHP,RES, energy efficiency)

    Regulations CHP, RES-E , Reservesof oil products , On energy efficiencyrequirements for equipment, Onlimitation of sulphur in fuels

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    Tendencies for green electricity in LatviaRES-E Technology 1997 [GWh] 2003 [GWh]

    Biogas 0 18Solid 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 2,336Share of total consumption [%] 42.40% 36.26%

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    Estimated potential for RenewableEnergy Sources:

    W ood fuel 44.5 82.5 PJ

    Biogas 2 PJ

    Hydro 10-20% increaseW ind 250 -1250 mill k W h

    Waste 4.5 PJ

    Peat 2387 PJ (for whole reserves)

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    Barriers for green energydevelopment

    Unitary electricity tariff does not promotedevelopment of RES-E sector

    Quotation system for renewable energy

    capacityVery low level of annual quotation

    Bureaucracy and administrative barriers inissuing of quotas

    Incomplete infrastructure

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    What can help to improve thesituation?

    Decrease of administrative barriers

    Clear guidelines and advanced planning

    for development of different types of RESEnsurance of fair accessibility toelectricity net for every electricity producer

    Improvement of infrastructure of electricitynetwork by net operator

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    Supporting Financial Mechanisms (1)EU Structural funds - Financial period 2004-2006

    ~ 7. mill euro M odernisation of heat supply systemsaccording the environmental and energy efficiencydemands (supply and demand side)

    ~ 3. mill euro M odernisation of heat supply systems byreducing of sulphur content in fuel

    P ublic Investment P rogramm 2005~ 0. 0 mill euro (0.568 mill LVL) Renovation of district

    heating systems

    P ublic Investment P rogramm 2006~ 10.0 mill euro (7.0 mill LVL) - Implementation of energy

    efficiency measures and renovation of district heatingsystems

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    Supporting Financial Mechanisms (2)Future plans:

    Strategy of Energy sector development - P ublicInvestment P rogramm 2007-2013~ 3. 4 mill euro each year - Implementation of energy

    efficiency measures

    EU Structural fuds Financial period 2007-2013~ 2 . 7 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 efficiencymeasures and development of renewable energysources

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    Thank you for attention !!!Inguna Ozolina

    Latvian Investment and Development Agency

    Energy Department

    [email protected]

    Tel: +371 7039462

    Fax: +371 7039401