ENTSOG GRIP BEMIP 2014-2023 / Main Report

2.4 Latvia

PLAYERS

At present, AS Latvijas Gāze is the only player in the natural gas market in Latvia. According to the share purchase agreement, which was signed with the strategic investors, AS Latvijas Gāze has exclusive rights on transmission, storage, distri- bution until year 2017 and license for sale of natural gas, as well as unlimited and exclusive right to use Inčukalns Underground Gas Storage (UGS) for the same period. AS Latvijas Gāze carries out transmission, distribution, storage and sale of natural gas in compliance with the licences issued by the Public Utilities Commis- sion. On 3 December 2009, the Saeima (Latvian Parliament) adopted a decision to postpone liberalisation of the natural gas market in Latvia until 4 April 2014. On 13 March 2014 Saeima approved amendments to the Energy Law providing for introduction of Third Party Access (TPA) in Latvia from 4 April 2014 and unbundling of AS Latvijas Gāze as of 3 April 2017 or earlier, in case the condtions of one major gas supplier and no connection to the common EU gas grid will not be fulfilled. Regardless of derogation from the gas market liberalization as isolated market, AS Latvijas Gāze is providing non-discriminatory access to the gas transmission and storage based on technical capabilities and separate accounts for gas transmission, storage, distribution and sales as well as non-discriminatory and undisturbed access to the gas distribution networks as set by the Public Utility Commission Rules of 16 July 2008.

ENERGY MIX

100 %

In 2012, the total consumption of primary energy resources in Latvia amounted to 50.8 TWh. Natural gas was the main resource for generating of heat ener- gy and electric energy. Total consumption of natural gas reached 14.1TWh, which corresponds to 28% of the total primary energy consumption. In total con- sumption of primary energy sources, firewood with its total consumption forming 12.9 TWh was the most widely used local energy resource, electricity generat- ed in hydropower stations and wind power stations constituted 3.8TWh.

80

60

31

31

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30

30

28

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28

28

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40

20

0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Electricity

Firewood

Natural gas Coal and coke

Petroleum products Other

Peat

Figure 2.9: Consumption of primary energy resources in Latvia

Baltic Energy Market Interconnection Plan GRIP 2014–2023 | 23