The energy issue is one of the many challenges that Latvia faces on the path to a market economy. Since the Second World War, renewable resources such as hydro energy and wood have been traditional sources for production of electricity and heat in this Baltic Country. However, Latvia is steadily changing its energy policy due to the European Union’s energy market diversification plan along with its ambitious environmental goals.
New Government Incentives
The country’s new energy policy also focuses on the more efficient use of biomass supplies along with a more targeted application of EU co-funding. This will help Latvia achieve 40 percent renewable resource-based energy usage and a reduction of fossil fuel consumption in energy end use volume. The country is fully capable of obtaining these targets by 2020 although the implementation intensity of this measure has been slower than initially planned.
At the same time, new incentives include the enlargement of renewable energy sources that will enable the country to reach the goals incorporated into the EU’s climate and energy package. This policy states that renewable energy sources should make up 40 percent of overall consumption by 2020. Until this time, the main focus is to achieve more complete utilization of biomass without ignoring the potential use of wind energy after the year 2020.
Higher Energy Supply Security
The EU climate and energy package of 2020 states that Latvia has committed itself in trying its best to increase energy efficiency by reducing energy consumption in many sectors. At the same time, the country should implement changes to balance its energy sources towards an increased use of renewable energy.
This also means less dependence on the use of fossil fuel energy that will ultimately contribute to an increase in the country’s energy supply security. Much lower consumption of primary energy supplies along with an essential reduction of fossil fuels will help the country stabilize energy prices. This also helps in reducing energy costs and the impact of an energy supply crisis. At the same time, it allows the country to be less dependent on fossil fuels.