Climatic changes are shifting the potential tree distribution limits of many tree species northwards. One of such species is Fagus sylvatica, currently represented in Latvia only by a few stands. In order to increase knowledge on its potential use in the forest management, the aim of our study was to characterize the growth of beech in a young stand in the central part of Latvia. The stand of beech and spruce, mixed in rows with an initial spacing of 2.5 x 2.5 m in Oxalidosa forest type was assessed. Survival of European beech in clear cutting was similar to that observed for the native Norway spruce (73% and 79%, respectively), but both height and diameter were notably and significantly superior for wildlings at the mean age of 15 ± 2 years, reaching on average 7.4 ± 0.30 m and 8.9 ± 0.69 cm, respectively. Increasing ring width with increasing tree age for both tree species was observed until the last four years, when large and increasing superiority of beech over spruce, coinciding with reduction of ring width of spruce, was noted. It was most likely caused by intensified competition due to very wide crowns formed by young beech trees in the plantation with wide spacing: average crown radius reached 2.4 ± 0.16 m, for few trees exceeding even 4 m.

Short rotation forests (SRF) can be used for biomass production for energy applications in Latvia. Establishment of plantations could be one of possibilities how to reach targets of renewable energy resource (RES) consumption of 40% in 2020. In Latvia’s conditions, one of most suitable species that could be used for SRF is willow (Salix sp.). Abandoned agricultural lands are suitable for establishment of plantations. Productivity of 8 oven- dried tons (ODT) ha-1 year -1 can lead to Rate of Return (IRR) of 17.1% and Net Present Value (NPV) 1099 Latvian Lats (LVL) if the biomass price is 33 LVL ODT-1. Establishment, harvesting and transporting costs account for 88% of the total cost of production. Price of wood chip and fuel plays the most important role in economics of plantation.