Latvia: Overall Summary
In Latvia, renewable electricity generation is stimulated through a complex support system based on a feed-in tariff, which also includes elements of a quota system and tenders. The existing feed-tariff is on hold until 01.01.2020 due to concerns about corruption and a lack of transparency in the way it was carried out since 2007. The existing state support mechanisms for energy production from renewable energy sources (RES) are being assessed and revised. Stringent supervision of subsidised electricity producers, stricter controls and a limited timeframe for the implementation of RES projects have been introduced. Since 1 January 2014 RES-E is promoted also through net-metering.
According to Energy Development Guidelines 2016-2020, new national support mechanism for electricity production from RES should be developed until December 2018. However, no new plans have yet been presented. It is highly likely that the new funding system will only be implemented after the completion of the National Energy and Climate Plan under the Energy Union Governance Framework. Heating and cooling from renewable energy sources is promoted through different tax benefit. Renewable energy use in the transport sector is promoted through obligation to sell petrol and diesel blended with biofuels and a tax regulation mechanism.
Access of renewable energy plants to the grid is subject to the general legislation on energy. Electricity from renewable sources is not given priority. Also, installations for heat production from renewable energy sources are not given priority connection, and there is no special legislation promoting the connection of RES heating devices to the heat transmission network at the national level. There are two policies promoting the installation and use of RES installations.