Development of renewable energy policy in Latvia
2017
Rubins, M., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics and Social Development | Pilvere, I., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics and Social Development
The research analyses the role and results of production of renewable energy sources (RES) in Latvia. The government has promoted the use of RES by biomass cogeneration and power plants as well as biogas cogeneration plants by means of various support policy instruments. Consequently, the electricity output from RES comprised 51 % of the total electricity output in 2014 and, on average, 48 % in the period 2011-2014. Although the support policy for RES use fostered the development of this industry in Latvia, a number of restrictions were imposed in recent years – a 10 % subsidised electricity tax (SET) rate was applied to taxable income from electricity production from RES in 2014 and a decision was made in 2016 to differentiate the mandatory procurement component (MPC) in 2018. The research aim is to analyse trends in the development of RES in Latvia. To achieve the aim, the following specific tasks were set: 1) to give insight into the situation in the field of RES in Latvia, placing a particular focus on electricity generated from the RES; 2) to analyse the most important RES policy developments in Latvia; 3) to assess the RES support policy implementation results for electricity generation from the RES and to outline an expected RES policy in the EU beyond 2020. The research has found that the greatest threats to RES use are an imprudent policy of the government of Latvia, which could create incomprehension among the public and business environment. However, EU policy softening regarding RES can influence the EU’s leading role in the field of the RES. For this reason, the positive effects from RES use – energy efficiency, environmental protection and regional development – could decrease in the future.
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