Presentation of Anrijs Matiss State secretary Ministry of Transport and Communications of the Republic of Latvia during the EP ECR group Meeting in Riga, September, 2010.

1. Energy Security and
Diversification of Energy
Supplies
Anrijs Matiss
State secretary
Ministry of Transport and Communications
of the Republic of Latvia
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

2. Contents
 Current situation
 Development of generating powers
 Integration
 Diversification of energy sources
 Renewable energy
 Energy efficiency
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

3. Current situation
 Guidelines for Energy policy 2007-2016 approved by Cabinet of
Ministers in 2006
 Guidelines covers
 Primary sources of energy
 Electricity
 Heat production
 Institutional issues
 Guidelines revision
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

4. Current situation (2)
 High dependency on import
 64% primary energy sources
 30% electricity
 30% of primary sources natural gas
 Natural gas supplies from one supplier
 High proportion of RES, mainly biomass in primary energy 30%
 Electricity is mainly produced from natural gas and hydro
 Over 35% of electricity is produced in cogeneration
 Deficit of generating powers 200-700 MW
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

5. Current situation (3)
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

6. Eelectricity production and consumption
pattern in Latvia 2009
162 65 114
175 83 91
265
118
403 305 363 361
364 406 477
491 731
445
220
477 81
66 79 98
218 174 162 198 169
116 106 121 127 126
-61
-159
Jan Feb Mar Apr Mai Jun Jul Aug Sep Oct Nov Dec
HPP TPP Other plants Net imports Demand
Data source: Latvian TSO Annual report on system adequacy
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

7. Electricity production and capacity
with Ignalina
595 6 239
532 239 157
358 135
345 933
840 146 110 805
821 936 412
605 885
906 89
876 878 860
285 80
50
1418 1454 1473
1312 1258 1202 1202
1034 934 1085
892 920
-295 -117 -566 -338 -210 -155 -106 -25 -171
Jan Feb Mar Apr Mai Jun Jul Aug Sep Oct Nov Dec
TTP NPP HPP HPSPP
Windmills Other plants Net imports Demand
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

8. Electricity production and capacity
without Ignalina
526 762
724 370 779
891
568 655
532 666 239
239 595 697 157
724 754
358 80 135
345 89
146 110
1418 1454 1473
1312 1258 1202 1202
1034 1085
934 892 920
Jan Feb
TTP Mar Apr Mai
HPP Jun Jul HPSPP Sep
Aug Oct Nov Dec
Windmills
Other plants Net imports Demand
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

9. Consumption prognosis - Baltics
7 500
7 000
6 678
6 544
6 409
6 500 6 273
6 141
6 009
6 000 5 874
5 745 5 753
5 611 5 633
5 487 5 514
5 366 5 398
5 500 5 285
5 242
5 168
5 054
4 948
5 000 4 852
4 729 4 761
4 660
4 500
4 000
5 623
5 446
5 623
4 643
4 459
4 643
4 854
4 452
4 854
5 691
5 121
5 691
5 897
5 467
6 088
6 082
5 490
6 123
6 665
5 249
6 606
6 989
5 249
7 411
6 045
4 302
6 467
5 802
4 014
7 085
5 811
4 018
7 093
6 539
4 019
7 110
3 500
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Updated forecas ted available capacity in Baltics
Forecasted available capacity in Baltics as provided by 2008 BALTSO Report (Scenario A)
Forecasted available capacity in Baltics as provided by 2008 BALTSO Report (Scenario B)
Updated capacity demand in Baltics
Capacity demand in Baltics as provided by 2008 BALTSO Report
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

10. Primary sources (electricity) - Latvia
Imported electricity
Natural gas
Oil products
Coal
Biomas
Hydro, wind, other RES
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

11. Problems
 High dependency on imported primary sources
 Self sufficiency – 29,5% (2008)
 Gas supplies from one supplier
 Closure of Ignalina nuclear plant in 2009.31.12
 Isolation of Baltic electricity and gas markets
 Low energy efficiency in
 Production
 Transmission
 Distribution
 Consumption
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

12. Targets
 Safety of supply
 Indepency from one supplier
 Diversification of energy sources
 Utilisation of local resorces
 Diversification of supply routes
 Energoefficiency
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

13. Targets (2)
 Self sufficiency
 80% (2012)
 100% (2016)
 Reduction of household/housing consumption
 235 KWh/m2 (2004)
 150 KWh/m2 (2020)
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

14. Diversification
 New hard fuel (coal/biomass) power generating plant 400 MW
 Regulations of the Cabinet of Ministers 2008/12
 EC approval on support 2010/1
 Selection of partners ongoing
 Visagina nuclear power plant
 Latvenergo shareholder
 Max power 3200 MW
 LPG/LNG terminal
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

15. Transmission system - electricity
350 MW
2200 MW
1200 MW
300 MW
2100 MW
1400 MW
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

16. Transmission system - gas
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

17. Gas market in Latvia
 Consumption 1,5 billions m³ annually (~5 billions m³ in Baltics)
 A/S Latvijas gaze only supplier
 Market unbundling / exemption till 2014
 Gas infrastructure linked with Russia only
 Incukalns storage 4,47 billions m³, 2,32 billions m³ active
 Unique possibilities of storage for up to 50 billions m³ (10% of
EU consumption)
 No LNG/regasification terminal
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

18. Potential gas storage facilities
18
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

19. Interconnections planned
 ESTLINK-2 between Estonia and Finland
 2013
 NORDBALT (formerly called SWEDLIT) between Lithuania and
Sweden
 2015
 LITPOL between Lithuania and Poland
 2015
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

20. Generating power prognosis
 Lithuanian Power Plant AB Lietuvos elektrine 1800 MW (38% of
LT consumption 20% of Baltics consumption) (operational)
 Visaginas Nuclear Power plant 3000 MW (2020)
 Latvenergo Riga CHP-2 400 MW (2013)
 Liepaja New hard fuel (coal/biomass) power generating plant
400 MW (2017)
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

21. Renewable energy
 State support by increased tariff
 Wind
 Biomass
 Biogas
 Cogeneration
 Solar
 EU funds support for construction of cogeneration facilities
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

22. Price sant./kWh
22
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

23. Local resources, volume of mandatory purchase in 2009,
MWh
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

24. Approved projects on mandatory purchase (March 2010, source
MoE)
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

25. Energy Efficiency
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

26. Energy Efficiency
 EU support
 Residential housing renovation support
 Social buildings renovation support
 Improvement of centralised heat supply efficiency
 Development of Cogeneration facilities
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

27. Summary
 Integration of EU networks - Key for ensuring security of supply
 Supply meets demand, generating powers development
 Reduce residential heating consumption by 50%
 Facilitation of use of renewable energy sources
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF

28. Thank you for attention!
3, Gogola Str, LV 1743,
Riga, Latvia
satmin@sam.gov.lv
www.sam.gov.lv
www.transport.lv
MINISTRY OF TRANSPORT AND COMMUNICATIONS OF THE REPUBLIC OF