Latest Developments on RES Policy, Implementation and Planning in Latvia

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1 Latest Developments on RES Policy, Implementation and Planning in Latvia Dr. Dagnija Blumberga, professor Director of Institute of Energy Systems and Environment Riga Technical University 1 Actors involved Ministries Ministry of Economy Ministry of Environment Ministry of Regional Development and selfgovernments Agencies Latvian Investment and Development Agency Latvian Environmental Investment Fund Latvian Environmental Protection Fund NGOs 2 1

2 Structure of primary resources, PJ 14.3% % % 35.7% 36.0% 36.4% 36.7% 37.0% 2000 Source: Climate policy % 60% 50% 40% 30% 20% 10% 0% Imported electricity Importētā elektroenerģija Hidro un vēja enerģija Hydropower Biomasa Biomass Natural Dabas gāze gas Oil Naftas produkti un degakmens eļļa Kūdra Peat Ogles u.c. cietie Coal fosilie kurināmie Selfcoverage Pašnodrošinājums 3 RES in Latvia Source: Ministry of Economy Hydroenergy 82,9 0,28Wood 0,7 Wind 0,42Biogas 16,4 4 2

3 Potential of RES in Latvia. Wood - 44,5 82,5 PJ Wood logs Forest residues bushes stumps Wood waste (from industry) PJ PJ 2-5 PJ 0,7 3 PJ PJ Source: Ministry of Economy 5 Potential of RES in Latvia. Other Bioenergy Straw Biogas Biodiesel Bioethanol 2,2 8,2 PJ 2 PJ t t Source: Ministry of Economy 6 3

4 Potential of RES in Latvia Hydroenergy Wind energy ~ 100 MW 0,8 4,5 PJ Source: Ministry of Economy 7 RES and electricity production Permission issued in 2005 Wind power plant 12 MW Cogeneration. Biomass 5 MW Cogeneration. Biomass 4,5 MW Proposal received in 2006 Wind power plants 100MW Solar power plant 8 4

5 RES Policy development = Implementation of EU Directives Renewable Directive Cogeneration Directive Emission Trading Directive Linking Directive EPB Directive Energy Service Directive Etc. 9 RES Policies National Development Plan (Cabinet of Ministers July 4, 2006.Regulation) Basic statements of energy development (Cabinet of Ministers, August 1, Direction) Basic statements for use of RES in Latvia (Cabinet of Ministers, October 31, Direction) Electricity generation in cogeneration technologies (Cabinet of Ministers, November 7, Regulation) 10 5

6 Financial sources European Structural Funds Latvian Environmental Investment Funds CEEF programme Energy Efficiency Fund Commercial Banks State budget: subsidies to bio fuel production 11 Financial support. Subsidies to biofuel production Financially supported quotas for biodiesel and bioethanol in litres bioethanol litres biodiesel. Amount of support: 230 Euro for 1000 litres biodiesel 185 Euro for 1000 litres bioethanol. 12 6

7 Feed in tariffs Corrections in Energy Law in 2005 : no subsidies to RES electricity. However: HPP < 2MW built before 2003 double tariff during 8 years Wind licence received before 2001 double tariff CHP < 4 MW licence received before 2001 double tariff 13 Electricity tariff for cogeneration. January 1 st 2007 C = Tg * k* n / 9,2 k - load coefficient 1,11 1, till 0,08 MW; 0,08 0,8 MW; 0,8 4 MW Tg tariff of natural gas, Ls/1000 m 3 ; n fuel coefficient 3,8 4,5 for fossil fuels; for RES 14 7

8 Programmes promoting RES EIE projects Energy 4 Cohesion GreenLabel Purchasing InoFIn etc Nordic Energy Research Solar thermal energy use (REBUS) Biohydrogen (BioH2) Green investment Scheme (GIS) 15 Programmes promoting RES. GIS World Bank marketing study about GIS projects 10 types of projects, including RES Solar thermal energy use Biogas use Biomass use Wind energy Hydro energy 16 8

9 Development and Planning for RES.Finances needed ( ) investments needed, millions Euro 120,00 100,00 80,00 60,00 40,00 20,00 0, years Source:Basic statement for RES in Development and Planning for RES. Potential financial sources( ) Investments, million Euro 200,00 180,00 160,00 140,00 120,00 100,00 80,00 60,00 40,00 20,00 0,00 86,17 State and municipal budget 93,26 European funds 1,29 Bilateral Latvian - Norvegian agreement 184,27 Comercial financing Source:Basic statement for RES in

10 Other Potential financing Green investments Joint implementation Emission trading Future - taxes from wood chips export??? 19 Conclusions Latvia becomes more and more open for use of RES 20 10

11 Thank you for attention 21 11