EurObserv'ER logo

Biofuels in Latvia

General
Large scale hydro-energy is the dominant RES-E energy technology (94% of all RES-E in 2004). Technologies increasing in importance are small-scale hydropower and onshore wind power. Biomass (wood) is used in centralized, local and individual heating systems, and its share in energy supply (heating and electricity production) was 45 % in 2004.

The Latvian energy policy has been laid down in the strategy paper ‘Guidelines for Development of Energy Sector for 2007-2016’. Main topic are to ensure security of supply, improve infrastructure, implement energy efficiency measures and to increase effective use of renewable sources of energy and energy production in cogeneration (CHP) processes.

From the EU Structural Funds approximately EUR 140 million is to be allocated to the energy sector (2007 - 2013), mainly to be used for increasing efficiency of district heating systems, for development of cogeneration plants that use biomass and for the development of wind farms.

According to the Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from renewable sources the target for the share of energy from renewable sources in gross final consumption of energy in the year 2020 for Latvia is 40% (in the year 2005 the share was 32.6%). The Directive has a mandatory 10% target for transport to be achieved by all Member States, which refers to renewable sources as a whole, not biofuels alone.

Renewable energy projections according to the National Renewable Energy Action Plan for Latvia
The National Renewable Energy Action Plan (NREAP) for Latvia was submitted in October 2010. The target according to Annex I of Directive 2009/28/EC is 40% for the year 2020 and the projected NREAP share in that year exactly matches the target.  According to the projection, the most important contribution in the year 2020 is expected from biomass (renewable heating and cooling) (1392 ktoe, 73% of all renewable energy). Second important contribution is expected from hydropower (3.1 TWh or 262 ktoe, 14% of all renewable energy). The third largest contribution is from biomass (renewable electricity) (1.2 TWh or 105 ktoe, 5% of all renewable energy). Wind power contributes with 0.4 GW (0.9 TWh) in the year 2020 (onshore wind 0.2 GW and 0.5 TWh, offshore wind 0.2 GW and 0.4 TWh). For solar photovoltaic the 2020 contribution is projected to be 0.0 GW (0.0 TWh). For solar thermal the 2020 contribution is projected to be 2 ktoe. The two most important biofuels are projected to contribute 28 ktoe (biodiesel) and 18 ktoe (bioethanol / bio-ETBE) by 2020. The renewable electricity production from solid biomass amounts to 0.6 TWh (55 ktoe) and for biogas it is expected to be 0.6 TWh (50 ktoe). The consumption of renewable heat is expected to amount to 1343 ktoe for solid biomass and 49 ktoe for biogas.

Renewable transport fuels (biofuel)
Since 15 April 2005 there is a Biofuel Law in force which was passed in accordance with Directive 2003/30/EC of the European Parliament and of the Council of 8 May 2003 on the promotion of the use of biofuels or other renewable fuels for transport. The purpose of this Law is to promote the trade in biofuel, thereby supporting the utilisation of environmentally friendly and safe in supply renewable energy resources. Main targets of this act are:
•    To increase proportion of renewable energy resources in common Latvia energy balance;
•    To promote energy supply security in Latvia;
•    To provide renewable energy sources long-term contribution in reduction of GHGemissions.

In order to promote the use of biofuels and, in accordance with the provisions of the Law on Biofuel, to ensure that its use by 31 December 2010 is no less than 5.75% of the total amount of fuel in the economy for transport, the mandatory admixture of 5% biofuel in fossil fuel was implemented on 1 October 2009.

Pursuant to the Law on Excise Duty, the following reduced rates of excise duty were applied to oil product mixtures with biofuel as from 1 February 2009:
•    for unleaded petrol, its substitutes and components to which ethanol obtained from agricultural raw materials and which is dehydrated (with alcohol content of at least 99.5% by volume) has been added, if the absolute alcohol content makes up 5.0% by volume of the total quantity of product – LVL 256 per 1,000 liters;
•    for unleaded petrol, its substitutes and components to which ethanol obtained from agricultural raw materials and which is dehydrated (with alcohol content of at least 99.5% by volume) has been added, if the absolute alcohol content makes up between 70-95% by volume of the total quantity of product – the unleaded petrol rate (LVL 269 per 1,000 liters) was reduced in proportion to the amount of absolute ethanol, that is from LVL 13.45 to 80.70 per 1,000 liters;
•    for diesel (gas oil), its substitutes and components to which 5-30% (not inclusive) by volume of the total amount of oil product, of rapeseed oil or biodiesel obtained from rapeseed oil has been added – LVL 223 per 1,000 liters;
•    for diesel (gas oil), its substitutes and components to which at least 30% by volume of the total amount of oil product, of rapeseed oil or biodiesel obtained from rapeseed oil has been added – LVL 164 per 1 000 litres;
•    for rapeseed oil sold or used as fuel or automotive fuel, and biodiesel obtained totally from rapeseed oil – LVL 0 per 1,000 liters.

Future programme changes expected
No further information is available.

Sources

Renewable energy factsheet Latvia, http://ec.europa.eu/energy/energy_policy/facts_en.htm (sourced January 2008)

Interactive EurObserv’ER Database, http://www.eurobserv-er.org (status 2007)

Ministry of Economy, http://www.em.gov.lv (sourced September 2008)

European Renewable Energy Council (EREC), National Policy Reviews, http://www.erec.org/policy/national-policy.html (version April 2008, sourced August 2008)

Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC (Entry into force on June 25th, 2009), download from http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32009L0028:EN:NOT

Jansons, E. (2009): Overview of Latvian Biofuels Policy and Industry. Ministry of Economics, Latvia, November 25, 2010. http://194.100.159.181/NR/rdonlyres/BA27278E-27FF-437E-8D86-BDE75C92B77A/12815/AlternativeBiofuels25112009_LatviaMinistryEconomic.pdf (sourced June 2011)

The National Renewable Energy Action Plans (NREAPs) are all published on the Transparency Platform on Renewable Energy: http://ec.europa.eu/energy/renewables/transparency_platform/action_plan_en.htm (sourced July - December 2010)

Renewable Energy Projections as Published in the National Renewable Energy Action Plans of the European Member States, http://www.ecn.nl/nreap (sourced December 2010)

Interactive EurObserv’ER Database
http://www.eurobserv-er.org
Last update: June 2011



This information can be referenced without permission provided that thesource is mentioned completely and correctly: 'Interactive EurObserv'ER Database, http://www.eurobserv-er.org (date of last update)'

Suggestions for improvements to the policy description can be sent to EurObserv'ER by e-mail: project@eurobserv-er.org

The EurObserv'ER barometer is a project supported by the European Commission within the DG TREN 'Intelligent Energy Europe' programme and by Ademe, the French Environment and Energy management Agency. The EurObserv'ER Barometer is the result of the investigation and research work of its authors. The European Commission is not responsible for any use that may be made of the information contained therein.