Overview

In 2015 the final energy consumption (FEC) in Latvia was 3.9 Mtoe; the increase was about 15% in comparison with the year 2000. The greatest changes were in the residential sector where energy consumption dropped by about 16% and the share of which in the FEC decreased by about 12% points to reach 29% in 2015. The transport sector had the other greatest share in the FEC with 29% in 2015 (7% points increase compared to 2020). Since 2000 the FEC in industry had increased by 37% with a share close to 20% in 2015. 

Figure 1: Final energy consumption by sector (normal climate)

Source: ODYSSEE

Energy efficiency for final consumers, as measured by ODEX, improved by 32 %, or 2.1%/year. If in the given period energy efficiency for the service sector had improved only by 11%, then in the transport sector it was by 29% (average 1.9%/year). Several financial support programmes from the State and the implementation of legislation targeted at reducing heat losses from buildings had contributed to the improvement of energy efficiency in the residential sector by about 34% (average 2.3%/year). Despite the economic  recession (2008-2010), energy efficiency in industry improved by around 45% over the period 2000-2015. .


Figure 2: Technical Energy Efficiency Index

Source: ODYSSEE

Energy efficiency (EE) improving is one of the priorities of the national 'Energy Sector Development Guidelines 2016-2020', which allows for the cost-effective reduction of risks associated with security of energy supply, sustainability, competitiveness and growth of national economy. As stated by the Latvia Report (2017) on the progress achieved towards national EE targets for 2020, the primary energy consumption should reach 5.3 Mtoe in 2020 and 4.4 Mtoe for final energy consumption. These values will provide the fulfilment of the indicative national EE target, based on Art.3 of Directive 2012/27/EU (EED) – 0.67 Mtoe primary energy savings in 2020. The Guidelines foresee the decrease of energy intensity in 2020 per 25% compared to 2010. Latvian EE policy pays particular attention to co-financing of EE investments (see sectorial Tables). Energy Efficiency Law (March 2016) states obligations to implement energy management systems (see Table 1). The Latvia cumulative energy savings for the year 2020, established according the Art.7 of the EED, are 9896 GWh. In April/May 2017 the Cabinet of Ministers had approved both Latvia national Plan of the Alternative Measures and the Regulations on the Energy Efficiency Obligation Scheme (the latest includes up to 31.12.2020 electricity retail sellers only). 

Table 1: Cross-cutting measures

MeasuresNEEAP measuresDescriptionExpected savings, impact evaluationMore information available
Energy Management Systems (EMS) in MunicipalitiesyesEMS shall be mandatory implemented in (1) nine large cities (up to 01.04.2017) and (2) other municipalities fulfilling threshold requirements for territorial development index and number of population (up to 01.11.2017)HighLink
EMS in state (central administration) institutionsyesEMS shall be mandatory implemented if the state institution manages total heating area above 10000 m2HighLink
Energy Audits (EA) in Large Enterprises (EED definition) of all sectors (Industry, Tertiary, Transport)yesThe first EA should be performed up to 01 December 2017, or during one year after the inclusion in the list of large entities. The large entity shall implement up to the 1st April 2020 at least three EE measures which have the highest energy savings or the highest economical returnHighLink
EMS in Entities - Large Electricity Consumers (national definition, above 500 MWh electricity annually) of all sectors (Industry, Tertiary, Transport)yesThe EMS shall be implemented up to 1st April 2018. The large electricity consumer shall implement up to the 1st April 2022 at least three EE measures which have the highest energy savings or the highest economical returnHighLink
Energy efficiency requirements for district heating (DH) systemsyesMeasure reduces primary energy consumption. Cabinet of Ministers Regulations state minimum EE coefficients (average annual) for DH production technologies and pipeline networksMediumLink
Source: MURE

Buildings

In 2015 the split of the energy consumption was basically 66% for space heating, 18% for water heating, 10% for electrical appliances and 6% for cooking. In comparison with 2000 the share of electrical appliances had grown by 4.6% points, water heating – by about 6.4% points. At the same time the share of space heating had decreased by about 10% points. Reduction of energy consumption in 2015 compared to 2000 was largely due to energy efficiency measures carried out in residential buildings as energy consumption of space heating per m2 had decreased by about 40% in that period.


Figure 3: Energy consumption of space heating per m2

Source: ODYSSEE

Figure 4: Energy consumption by end-use per dwelling

Source: ODYSSEE

There are two main factors which contributed to the growth of energy consumption in 2015 compared to 2000. Firstly, the increase of average floor area (“larger homes”, +0.4 Mtoe) and, secondly, changes in the consumer behaviour (“other”+0.07 Mtoe) and the climate factor (+0.03 Mtoe). However, energy savings (-0.6 Mtoe) and, to a lesser extent, the population decline and consequently decrease in a number of dwellings fully compensated the effect of the above-mentioned energy consumption drivers. As a result, the energy consumption of residential has decreased by 1.2%/year over the period 2000-2015.


Figure 5: Main drivers of the energy consumption variation in households

Source: ODYSSEE

Energy consumption per employee increased by 11% between 2000 and 2015. To a large extent it was due to the sharp increase by 60% of electricity consumption per employee. Though electrical appliances become ever more efficient, the rapid increase in their number contributed to the growth of electricity consumption. 

Figure 6: Energy and electricity consumption per employee (normal climate)

Source: ODYSSEE

Buildings is one of the top priorities in the national energy efficiency (EE) policy. The Latvia government uses a mix of investment support, regulation, information measures. Changes to legal requirements for thermal engineering of apartment building envelopes since 1979 can be characterized by specific normative energy consumption for heating, kWh/m2/year: 150-200 (1979), 100-130 (1992), 70-90 (2003), 50-70 (2014 re-casted standard). Important, the dominating share of the area of multi-apartment buildings was built without or with non-efficient building codes and the potential for energy savings in these buildings is high. Only 6% of the area of multi-apartment buildings had been built in 1993-2002 and 5% - after 2003. The specific building-related energy saving goal has been set in the 'Energy Sector Development Guidelines 2016-2020' – to reduce average energy for heating (climate corrected) from 202 kWh/1m2/year (2009) to 150 kWh/1m2/year (2020). In April 2014 the requirements of the re-casted Directive 2010/31/EU had been included in the national Construction Standard. The Standard sets thermotechnics values for three types of buildings: (i) residential buildings, care homes, hospitals, kindergartens, (2) other public buildings, (3) buildings used for production/industry purposes. The Cabinet of Ministers Regulations on Energy certification of Buildings (2013, amended 2015) introduced six EE classes. 


Table 2: Policies and measures implemented in the building sector

MeasuresDescriptionExpected savings, impact evaluationMore information available
Energy certification of residential buildings (Cabinet of Ministers Regulations)Establishes Latvia specific values for EE classes. Requires all new residential buildings to meet nearly zero energy building standards (40 kWh/1m2/year for heating) after 01.01.2021. Defines EE requirements for renovated buildings. States threshold level for energy for heating (class F, above 150 kWh/1m2/year) above which the building needs energy performance improvement measures. MediumLink
Increasing heat energy efficiency in multi-apartment buildingsEE improvement measures co-financed by ERDF within the frame of National Operational Programmes 2007-2013 and 2014-2020HighLink
Information campaign “Let’s Live Warmer”Highly effective campaign to motivate flats’ owners of multi-apartment buildings to renovate buildings and to provide practical information on best performance on it. Had received the EU Sustainable Energy Weak Winner Award in the category “Communicating” (2013); was announced as the national winner of Energy Globe Award [2015). Link
Investments in public buildings to reduce GHG emissionsMeasures co-financed by national green investment schemes (2010-2015 revenues from Kyoto protocol mechanism, from 2016 - EU ETS allowances auction revenues). See the set of the measures in the MURE Tertiary sector database TER-LV7, TER-LV8, TER-LV26, TER-LV27HighLink
Increasing energy efficiency of state (central government) and municipal public buildingsEE improvement measures co-financed by ERDF within the frame of National Operational Programme 2014-2020. See the measures in the MURE Tertiary sector database TER-LV16 and TER-LV17HighLink
national Construction Standard LBN002-15 “Thermotechnics for building envelopes” (residential buildings)Sets a minimum performance level (values for heat transmittance coefficients) for the construction elements to be installed/replacedHighLink
Energy certification of non-residential buildings (Cabinet of Ministers Regulations)Establishes Latvia specific values for EE classes. Requires all new non-residential buildings to meet nearly zero energy building standards (45 kWh/1m2/year for heating): after 01.01.2019 - new state public non-residential buildings, after 01.01.2021 – all other new non-residential buildings. Defines EE requirements for renovated buildings. States threshold level for energy for heating (class F, above 150 kWh/1m2/year) above which the building needs energy performance improvement measures.MediumLink
national Construction Standard LBN002-15 “Thermotechnics for building envelopes” (non-residential buildings)Sets a minimum performance level (values for heat transmittance coefficients) for the construction elements to be installed/replacedHighLink
Source: MURE

Transport

Road transport constitutes the greatest part of energy consumption in transport. In 2015 the share of cars in total transport consumption was about 48% and 32% for freight road transport. The share of rail transport decreased during the last 3 years and in 2015 represented only 6% of transport consumption.


Figure 7: Split of the transport energy consumption by mode

Source: ODYSSEE

The passenger traffic grew by around 4.2%/year since 2000. The sharp growth was observed up to 2007 and steady afterward. The growth was due to car traffic; however, public transport showed an opposite trend. Road public transportation decreased by 1.7%, but rail decreased by about 28%.

Figure 8: Share of transport in passenger traffic

Source: ODYSSEE

Freight transport (measured in tonne-kilometre) showed steep increase as well in comparison with 2000 (5.7% per year). Both road transport and rail transport revealed increase, too. At the same time the share of road freight transport increased by 17 percentage points, but rail transport decreased by 17 percentage points.

Figure 9: Share of modes in freight traffic

Source: ODYSSEE

In 2015 energy consumption in transport was 53% greater than in 2000. The trend was largely due to the growth in passenger and freight traffic (0.6 Mtoe). Energy saving (-0.7 Mtoe) counterbalanced the activity effect due to more efficient car and truck penetration.

Figure 10: Main drivers of the energy consumption variation in transport

Source: ODYSSEE

Latvia policies promote low-emission vehicles and environmentally friendly transport infrastructure. Mix of investments, regulations (standards, labelling, public procurement), fiscal, information, education measures is applied. Electromobility Development Plan 2014-2016 is followed by Alternative Fuels Development Plan 2017-2020. National green investment scheme in 2014-2015 co-financed purchase of electric vehicles (EV) in public and business sector entities. In 2014-2020 planning period within the National Operational Programme (NOP) “Growth and Employment” it will be developed EV charging network. Important focus by NOP is put on widening tram line networks, purchase of environmentally friendly buses (electrical, hydrogen, 100% biodiesel, CNG, hybrids). Particular objective of NOP is railway electrification. In 2016 the Cabinet of Ministers Regulations introduced cars’ annual operational tax based on specific CO2 emissions.


Table 3: Policies and measures into force in the transport sector

MeasuresDescriptionExpected savings, impact evaluationMore information available
Applying of differential vehicle annual operational taxMotivates vehicle owners to choose fuel efficient vehicle and re-consider travelling behaviour. For cars the rate is/was differentiated depending on the full mass of the car, engine size and maximal power of the engine, for buses and lorries/trucks – depending on full mass and some other technical parameters. The 2016 Amendments of the Law introduce the new approach - based on the specific CO2 emissions per 1 km for the cars, which have first registration in 2009 and afterwards. . MediumLink
Development of the infrastructure of environmentally friendly public transportInvestment programme of National Operational Programme 2014-2020, co-financed by the Cohesion Fund. Will result in passenger shift to user convenient public transportMediumLink
Electromobility DevelopmentInvestment programme of National Operational Programme 2014-2020, co-financed by the ERDF, to implement electric vehicles charging infrastructure.MediumLink
Source: MURE

Industry

The energy consumption in industry increased by 2.4% per year. The consumption increase was mainly brought about by the non-metallic mineral branch by 7.1% per year and wood branch by 25% per year. The share in the final energy of 5 energy intensive branches decreased by about 17.5% points. 


Figure 11: Final energy consumption by branch

Source: ODYSSEE

Though steel production decreased considerably since 2014, the previous period revealed the positive effect of improving and replacing technologies upon unit consumption in the branch.  

Figure 12: Unit consumption of energy‐intensive products (toe/t)

Source: ODYSSEE

Since 2000 final energy consumption increased by 2%/year driven by a growth in activity (0.4 Mtoe), structural changes (0.06 Mtoe) and other factors (0.2 Mtoe). Such effects have been offset by energy savings (0.5 Mtoe). If up to the economic crisis, i.e. the year 2007, the increase of the industrial energy consumption was influenced mainly by growth in production, structural effects were the main driver after the economic recession.


Figure 13: Main drivers of the energy consumption variation in industry

Source: ODYSSEE

Latvia government uses a mix of investment support, regulation, information measures. In 2010-2015 the energy efficiency (EE) investments in the sector had been co-financed by national green investment scheme, followed in 2014-2020 planning period by National Operational Programme  “Growth and Employment” specific objective to improve EE in manufacturing industry sector and national Rural Development Programme 2014-2020 activity to promote EE in food processing industry sector.  

Table 4: Policies and measures in industry

MeasuresDescriptionExpected savings, impact evaluationMore information available
Complex Solutions for GHG emissions reduction in Industry The national green investment scheme co-financed programme, 2010-2015, had important focus on EE improvement measures both in industrial buildings and industrial production technologiesHighLink
Efficient use of energy resources, reduction of energy consumption and transfer to RES in manufacturing industryThe Investment Programme of the National Operational Programme 2014-2020, co-financed by Cohesion Fund, has important focus on EE improvement measuresMediumLink
Investments to Improve Energy Efficiency in Food Processing EnterprisesThe Investment Programme of the National Rural Development Programme 2014-2020, co-financed by EAFRD, has significant focus on EE improvement measuresHighLink
Source: MURE