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Energy Efficiency and Renewable Energy Sources in Latvia

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					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 35% 34% 34% 33% 36%

50%

Natural Gas Oil Products & Shale Oil

50

25%

Peat Coal and other solid fossil fuels Self-sufficiency

0 2000 2001 2002 2003 2004

0%

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 Gross Electricity Consumption 1.5 GHG emissions

2.0

1.0

0.5

1990

1992

1994

1996

1998

2000

2002

2004

Indexes and energy intensity
2.0 1.6 1.2 0.8 0.4 0.0
Čehija Polija OECD EU15 Japāna

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

2 1.6 1.2 0.8 0.4 0

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Target in 2020

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

20 15 10 5 0

EU average

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 20062016 (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)

• Transparent and economically justified/market base prices signals - helps consumers switch to energy efficiency

What can help to improve the situation?

• 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 20062016 – 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 Biogas Solid Biomass Bio-waste Geothermal el. 1997 [GWh] 0 0 0 0 2003 [GWh] 18 4 0 0

Hydro large-scale Hydro small-scale
Wind on-shore

2,951 3
2.4

2,213 53
48

Total Share of total consumption [%]

2,955 42.40%

2,336 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


				
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posted:4/27/2008
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