Latvia
The Latvian government promotes the generation of renewable-energy-sourced electricity through a price regulation, which also includes elements of a quota system and tenders. A feed-in tariff for renewable electricity generation was introduced in Cabinet of Ministers 2007 Regulation No.503 "Regulations on Electricity Generation from Renewable Energy Sources".
Summary
The Latvian government promotes the generation of renewable-energy-sourced electricity through a price regulation, which also includes elements of a quota system and tenders. Every year, the Latvian government sets an amount of renewable-energy-sourced electricity to be generated, which is different for every technology. Electricity producers may claim the right to sell electricity at a guaranteed price until the amount set by the government is reached.
On 24 July 2007, the Latvian Cabinet of Ministers adopted "Regulations on Electricity Generation from Renewable Energy Sources" which ensure mandatory procurement of power generated from wind, small hydro, biomass and biogas under a feed-in tariff system. These regulations set the level of purchase prices for: wind (<0.25 MW), biomass (<4MW) and biogas (without capacity limitations), and small hydro (<5 MW). Preferential tariffs will be awarded for the first 10 years of operation. Thereafter a reduced rate feed-in tariff is offered, except for hydropower. Solar and geothermal power are not included in the scheme.
The level of the feed-in tariff is related to two factors: the end user price of natural gas and the installed capacity of the power plant. These regulations set the amount of electricity which will be purchased – installed capacity multiplied by operation time: hydro power – 5,000 hours per year, wind – 3,000 hr/yr, and other (biomass, biogas) – 7,000 hr/yr.
Assuming an end user gas price in 2007 of 275 €/1000nm, the estimated range of feed-in tariffs for 2007 would be for wind<0.25 MW 126–130 (€/MWh), for biomass<4 MW 130–167 (€/MWh) and for hydro<5 MW 110 - 141 €/MWh.
EC review and assessment
Read a summary of the European Commission’s 2005 review of Latvia’s renewable electricity policies and of its 2007 assessment of Latvia’s progress in meeting the target set out in Directive 2001/77/EC.
Legal analysis
There currently is no legal analysis of this law. If you are a lawyer from Latvia, and interested in submitting an analysis, or providing more up-to-date information about the current status of the renewable energy policy, we would be happy to hear form you. Contact us
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