Comparison of the consumption of wood pellets between Latvia and other EU countries
2016
Krievina, A., Latvia Univ. of Agriculture, Priekuli, Priekuli parish, Priekuli Municipality (Latvia). Inst. of Agricultural Resources and Economics | Melece, L., Latvia Univ. of Agriculture, Priekuli, Priekuli parish, Priekuli Municipality (Latvia). Inst. of Agricultural Resources and Economics
The paper explores the consumption of food pellets in Latvia by analysing their production and consumption in comparison with other EU countries, exploring the role of wood pellets in heating, and studying the main support mechanisms. Suitable qualitative and quantitative research methods have been applied to the studies. The production of wood pellets is very developed in Latvia, though only 10% is consumed on the local market, mostly by households; the present use of wood pellets in the energy transformation sector is insignificant. The notable price advantage of wood pellets against natural gas and the current high share of natural gas in the transformation sector imply on great replacement opportunities for fuelwood in Latvia. The production and consumption of fuelwood in Latvia is mainly promoted by the investment support, which has contributed to the development of the consumption of food chips by heat and CHP plants. Despite the higher price of wood pellets compared to other wood fuels, technical properties make them generally a comfort and efficient wood fuel, which is confirmed by the broad use of wood pellets in Denmark and Sweden. Although wood pellets might not be the immediate substitute for fossil fuels in Latvia, in the light of the increased movement towards low-carbon economy, wood pellets allow replacing a great deal of currently used natural gas in the transformation sector.
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