WHY TO PROMOTE LOCAL ENERGY RESOURCES? 1 LAEF Latvia Renewable Energy Federation Riga, June 18,...

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WHY TO PROMOTE LOCAL ENERGY RESOURCES?

LAEFLatvia Renewable Energy Federation

Riga, June 18, 2015

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LAEF in brief

LAEF – Renewable Energy Federation of Latvia is representing the joint interests of associations of local energy resources, including the following sectors:• Production of biomass, wood chips and pellets • Energy production in biomass CHP plants and electro stations• Energy production in biogas plants• Small hydro plants• Sun energy• Wind energy

LAEF is targeting to grow and enlarge the sector of industries representing local fuels in Latvia by:• Peat (production of peat), • bio-fuel, biodiesel

The target activities in 2015:• Facilitate legislative initiative to promote utilization of renewable

resources. Educating society and decision makers on the significance of renewable resourcesLAEF Latvijas Atjaunojamās

Enerģijas Federācija

LAEF Latvijas Atjaunojamās Enerģijas Federācija

Latvia renewable energy targets


Renewables in heating sector


Biomass CHP`s versus total

2007 2008 2009 2010 2011 2012 20130

10

20

30

40

50

60

3 4 3 5 4

12

21

2 3 2 5 4

18

54

Number of biomass CHP`s

Installed electrical capacity, MW

Including:

Number / MW

Fuel type Number of CHP`s

Installed electrical capacity, MW

Number of CHP`s %

Installed electrical capacity, %

Natural gas 95 1 142 57% 91%Biogas 50 53 30% 4%Biomass 21 54 12% 4%Coal, oil 1 3 0.6% 0.2%Total 167 1 252

Jelgava Bio CHP

Installed capacity, MW

1 23

Source: Central Statistical Bureau, year 2013


1. Global fight for resources is till on;

2. Resources are available within local

jurisdiction;

3. Energy and financial cycle during production

closes within the country borders;4. Side effects – employment, production of

equipment, transfer of technologies, possibilities for education and science;

5. The price for wind, sun and hydro is zero; 6. Basis for sustainable economic development

and technological progress.

Why RES in energy industry?


Renewable resources provide lower heat prices


• Variable costs define power price in the longterm (*):

Hydro, wind and sun = 0€/MWh RES = 5€/MWh Gas CHP = 40€/MWh

• When Germany startedto use local/RES, electricity pricesstarted to decline

Renewable energy – does Latvia need it ?

* bank Credit Suisse"Utilities Big Book"


Renewable energy – does Latvia need it ?

Energy self-sufficiency; In LV the dependence on foreign providers and prices is 56%:milj. EUR

Daily balance in 2013:• Costs on imported fossil fuels -17,3 MEUR/day

• Earnings from wood exports +3,1 MEUR/day


Wood resource

Energy self-sufficiency; • Latvia has all the conditions to be 100% self-sufficient:

• 55% of the territory are covered by woods• 10M m3 of wood chips remain in forests annually• 8M m3 of wood chips are exported annually


Wind potential

Energy self-sufficiency: • Latvia has all the conditions to be 100% self-sufficient:

• «Kurzeme Circle» provides a possibility to connect a wind plant of at least 500MW

• The potential of Latvia’s land winds is at least 1000MW


Use of farmlands

Energy self-sufficiency • Latvia has all the conditions to be 100% self-

sufficient:• 300 000 ha of farmlands in Latvia are not

cultivated• 1MWe Biogas plant requires 500ha


Workplace creation

New workplaces in regions and orderly environment:Output of local resources, transport, construction, infrastructure, maintenance, service sector

New workplaces per installed 100 MW

capacity for different

technologies in Latvia

Source: Institute of Physical energy of the Academy of science


New workplaces in regions and orderly environment

New workplaces under the national RES 2020 target*The RES Policy of the Republic of Latvia according to the Directive 2009/28/EK from April 23rd, 2009 of the European Parliament and Council on promotion of RES utilization that are annulling implementation of the Directives 2001/77/EK and 2003/30/EK by 2020

Source: Institute of Physical energy of the Academy of science


Using local resources comes to an end within national borders

€

€

€€

€

Production of resource

Transportation of resource

Transfer into energy

Energy transportation and supply

End consumption

of energy


Reduction of support


Electricity in Latvia is neither the cheapest nor the most expensive for average households in the EU


Electricity bill of a small industrial enterprise in Latvia


• Climate and energy efficiency targets has to be the key objectives when considering new investments

• Low gas and electricity prices are slowing down fuel diversification and investments in electricity production, however those objectives remain relevant

• Several retroactive legislative changes took place in recent years, what has damaged the investment climate and investments already made

• Well targeted, clear local policy decisions and support mechanisms are urgently required

• LAEF is currently working on the development on new law supporting use of local fuels

Key takeaways

WHY TO PROMOTE LOCAL ENERGY RESOURCES? 1 LAEF Latvia Renewable Energy Federation Riga, June 18,...

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