Latvia needs a renewable energy plan

  • 2010-09-29
  • By Raquel Dura Lahoz

RIGA - The promotion of investment in renewable energy, and greater energy independence, are the keys to energy development in Latvia. On Sept. 21 this conclusion was reached in the public discussion “Energy solutions in Latvia: Perspectives in the Baltic Sea Region,” organized by the Latvian Transatlantic Organization in cooperation with the Soros Foundation in Riga, and was attended by more than 90 people interested in energy issues, including politicians, investors, energy experts and representatives of political parties.

The first panel discussion was dedicated to the current situation and the future of development in the energy sector of Latvia, and counted the participation of five leading political parties. During this discussion they emphasized that energy policy is a significant factor in Latvian national development. The Economy Minister Artis Kampars (Unity) stressed the importance of Latvian energy, stating: “Depending on the energy sector, Latvia will be able to develop successfully, or otherwise, without success.” Kampars was talking about the importance of energy independence, because now Latvia has only one natural gas supplier - Russia. In this way, Kampars emphasized the need for competition in the energy sector in Latvia. He also added that renewable energy resources are one important point in which the Latvian government will work to make a “green country.”

Ruta Bendere from the Union of Greens and Farmers, talked about the lack of a concrete action plan to promote the renewable energy sector, saying that this is necessary for a more rapid development of the country.
Minister of Transport Kaspars Gerhards (Union of All for Latvia and For Fatherland and Freedom/LNNK) indicated that over the next four years the chance to get other gas suppliers is questionable. He pointed out the fact that gas company Latvijas Gaze has monopoly rights until 2017. However, he focused on green energy – from forests, rivers and the wind - as a solution for Latvian energy problems.

Former Minister of Foreign Affairs Maris Riekstins (For a Good Latvia) highlighted that the major deficiency in Latvian energy is the lack of long-term plans for a national energy policy, and he noted that the energy sector issues belong under the competence of the Ministry of Economy, and also includes environmental issues. The ministries have to work together, he said.

The second panel discussion was about Latvian investment in the energy sector. The participants discussed the investment climate in the energy sector and shared as well their personal experiences on energy projects.
During the second discussion, Christopher Stepanov (Energy Department from the Ministry of Economy of Latvia) stressed the advantages of Latvian producers of renewable energy with the Renewable Energy Law, which is under consideration. The new law will provide a stable investment environment in Latvian energy and will show clear rules. The idea is to gradually shift from fossil energy fuels to renewable sources. However, the law will provide greater support for research projects in energy.

Uldis Pilens, president of UPB Energy, continued the discussion and introduced his company’s international business. UPB Energy produces a high level co-generation plant, in mainly Swiss and German markets. Pilens pointed directly to the benefits of co-generation energy efficiency - electricity production with heat, providing up to 90 percent efficiency in energy use. He said that the future of energy production belongs to renewable sources, as has been demonstrated by Western European countries.

The biggest problem in the EU energy sector is the lack of a common energy policy, resulting in an energy security problem. For him, renewable energy resources can be considered as a 21st century industrial revolution.
At the end, Guntars Kokorevics, chief of French energy company Dalkia in Latvia, presented his company, which deals with gas-based energy co-generation in Valmiera, Cesis, Riga and Liepaja. As a positive example, he highlighted the power of Valmiera, where his company can supply energy for relatively favorable rates. Kokorevics believes that it is not sensible to focus the investment policy just on renewable energy, because now it is too expensive to both the entrepreneur and the consumer. As for recommendations, Kokorovics said to consider the idea of nuclear energy, and for a change in Latvian town insulation policy. This area would need to use a public - private partnership mechanism, he noted.