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Energy Policy Trends inLatvia
Jurijs Spiridonovs,Acting State Secretary of the Ministry of Economics
2015 April 9, Riga
Energy Union with a Forward-Looking climate change policy
VP Šefčovič on Energy Union:«EnU is not an inward lookingproject»«Establisment of the fifth freedom– free flow of energy»
Momentum (Whatshould be changed?):
ØMove away from fossil fueldriven economyØSupply-based, centralized
approachØOld TechnologiesØOutdated business modelsØEmpower consumersØUncoordinated national policiesØMarket barriersØEnergy isolated areas
2
Ways to reach the goal(5 dimensions)
Ø Energy security, solidarity,trust
Ø Integrated marketØ Energy efficiency
contributing to moderation ofdemand
Ø DecarbonizationØ Research, innovation,
competitiveness
Goal: To give consumers secure,sustainable, competitive and affordableenergy
Energy Policy 2030
Energy Policy Trends in Latvia 3
≥27%RES
Keyindictors
40%GHG
27%EE
GOVERNANCE
EU-2030Climate and Energy
Framework
≤50%Energy import
≥50% RES
Annual heatconsumption
<100 kWh/m2
Latvian energy longterm strategy
2030
Energy Policy 2020
Energy Policy Trends in Latvia 4
Europe 2020Climate change &
energy targetsEnergy intensity
≤ 280 ktoe/’000EurGHG intensity
≤ 0.80 t CO2ekv./’000Eur
≥ 40% RES
Energy savings in:primary energy consumption – 0.670 Mtoe,finaly energy consumption – 0.457 Mtoe
Latvianenergy targets for
2020
20%GHG20%GHG
20%RES
20%RES
20%EE
20%EE
5
Latvian progress in RES targets
Energy Policy Trends in Latvia 6
The share of energy from RESin gross final consumption
of energy
32,6%30,4%
33,5%35,8% 37,1%
40,0%
0%
5%
10%
15%
20%
25%
30%
35%
40%
2005 2010 2011 2012 2013 2020
Latvian Energy Sector
Energy Policy Trends in Latvia 7
2013
Gross energy consumption in Latvia
Renewable Energy – Electricity
Energy Policy Trends in Latvia 8
3 large HPP with total installedcapacity 1550 MW
Growing share of electricityproduced from biomass and biogas
in CHP plants
2013
Renewable Energy - Heat
Energy Policy Trends in Latvia 9
Hihgh share of RES indecentralised heat
(58% - 2013)
Fuelwood is the main energysource in households (decentralised
heat)
Growing RES share in district heat(15% - 2010; 27% - 2013)
2013
Renewable Energy - Main challenges
10
WHEREwe are?
• «feed-in» with the mandatory procurement & guaranteed price withoutguaranteed procurement - moratorium
• 37,1% (1501 ktoe) RES 2013 (3,1 % transport)• still waiting EC’s decision on Latvia’s support mechanism
possible changes for current support
FROMWHERE
the fundingcomesfrom?
•EU & Climate change funds – 94,1 milj. EUR (2007-2013)•State budget – 184,8 milj. EUR (2014-2017)•Electricity consumers – 681 milj. EUR (2011-2014)
NEW aid
•40% RES target – Accordig to RES RP 418 ktoe are still needed in2020
•New EU state aid rules• Possible NEW aid for RES producers• State support energy-intensive entrepreneurs from 2016
Energy Policy Trends in Latvia
11
Development of energy efficiencypolicy
Implementation of the requirements of the EU EnergyEfficiency Directive:• Draft Law on Energy Efficiency (submitted to the Cabinet
of Ministers)• Amendments of:
– Energy law– Law on Public procurement– Electricity Market law– Law on the Energy performance of Buildings– More than 15 new regulations or amendments of
regulations of Cabinet of Ministers in process
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Introduction of the mainrequirements of Energy EfficiencyDirective 2012/27/EU
Requirements Introduction of the Requirements
Mandatory final savings targetaccumulated (cumulative): 9897 GWH
• Alternative measures (EE in buildings,public lighting, rolling stockmodernization: financed from the statebudget and EU Funds 2014-2020) ;
• Energy Efficiency Obligation Scheme
Mandatory state owned building renovationtarget: 3% of the area every year
EU funding program for the renovation ofpublic buildings 97,8 million. EUR
State purchases only energy-efficientproducts, buildings, services
• Amendments to the Public ProcurementLaw (submitted Cabinet of Ministers);
• Amendments to the Law on EnergyPerformance of Buildings (submitted toSaeima)
Establishing Energy Efficiency obligationscheme and fund
Draft Law on Energy Efficiency (draft proposalsubmitted to the Cabinet of Ministers)
An metering and billing: mandatoryinformation and smart meters
Mandatory energy audits for largeenterprises
13
Mandatory energy auditsfor large enterprises
• The results of energy audits will enable companies to identifymeasures to be taken in order to minimize energyconsumption and thus the cost of energy;
• The Ministry of Economics of the Republic of Latvia haspublished the list of large Enterprises that are obliged tomake energy audits till the 5th of December of 2015.
• Recommendations on mandatory audits for large companiesare published online are available for all interested partieshttps://em.gov.lv/lv/nozares_politika/energoefektivitate_un_siltumapgade/energoefektivitate/obligati_energoauditi_lielajos_uznemumos/ .
14
15
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PCIs are essential for reaching the objectives ofthe energy policy
Projects of Common InterestConnecting Europe Facility
17
Efficient and well integratedinfrastructure
Efficient and well-functioningmarket
Infrastructure - the second PCI list (electricity)
18
No. Project name: Project promoter: Description:Expected date ofcommissioning
1.
The part of reinforcementfor Kurzemes ring
Latvian TSO The reinforcement for Latvian gridproject with the new 330kV overheadline (OHL) construction andconnection to the Riga node.
End of 2019
2.
Estonia-Latvia 3rdinterconnection
Latvian and EstonianTSO
330 kV AC OHL between Kilingi-Nõmme substation in Estonia andCHP2 substation in Latvia.
End of 2020
3.BalticCorridor: Tartu(EE) - Valmiera (LV)
Latvian and EstonianTSO
Reinforcement of existing 330 kV OHLwith new towers and wires.
2022
4.BalticCorridor -Tsirgulina (EE) -Valmiera (LV)
Latvian and EstonianTSO
Reinforcement of existing 330 kV OHLwith new towers and wires of 3x300mm2 in phase.
2023
5.BalticCorridor - RīgasTEC2 (LV) - Salaspils(LV)
Latvian TSO Internal reinforcement for BalticCorridor 600 MW.
2020
Infrastructure - the second list ofPCI (electricity)
19
Gas infrastructure projects
Reconstruction and modernization of Inčukalns UGS• The total costs of the first stage amount to EUR 89.7 million and it
will take place from 2014 till 2018. Te second stage of modernization,scheduled for 2019-2020 will cost EUR 45.3 million. The estimatedcosts of the third stage are EUR 241.5 million.Objectives: To increase security of supply in the Baltic Sea region;After completion of interconnections between PL-LT and EE-FI,diversification of supply rotes and counterparts.
Polish – Lithuanian gas interconnection (GIPL)• Objectives To integrate the isolated natural gas market of Baltic
states in the EU gas market, providing access to the global LNGmarket.
• The expected costs of the project is 558 million EUR.
Construction of regional LNG terminal• Currently under discussion on regional level• Objectives: To increase security of supply in the Baltic Sea region,
to eliminate dependency from one single supplier and diversifysources.
20
Gas interconnections projectsin the Baltic Sea region
• FI-EEinterconnectionBalticInterconnector
• Enhancement ofLT-LVinterconnection
• PL - LTinterconnectionGIPL
21
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Latvia has isolated gas market –«energy island»
• Important step was done on 3rd of March whenGovernment adopted the action plan report to liberalizegas market setting the road map for implementing the3rd energy package by April 3, 2017.
• Necessary changes in legislation will follow this yearaccording to agreed roadmap.
II phaseMinistry of Economics is working to prepare necessary
changes in legislation in order to open gas market for freecompetition as from April of 2017.
23
Thank you!Ministry of Economics of the Republic of Latvia
Address: Brīvības iela 55, Rīga, LV-1519, LatviaPhone: +371 67013100Fax: +371 67280882
E-mail: [email protected] page: www.em.gov.lv
Twitter: @EM_gov_lv, @siltinamYoutube: http://www.youtube.com/ekonomikasministrijaFacebook: http://www.facebook.com/atbalstsuznemejiem
