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BEMIP Gas Regional Investment Plan 2017
3.4 Latvia
3.4.1 ENERGY POLICY
The milestones of the Energy policy in Latvia are highlighted in the
Long Term Energy
Strategy 2030 – Competitive Energy for the Society
approved by the Cabinet of
Ministers on 28 May 2013:
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Security of supply – uninterrupted energy delivery and well developed
infrastructure;
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Competitiveness- energy based on market principles, which promotes
development of the economy and its competitiveness in the region and
in the World;
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Sustainability- reduction of dependence on imported energy, promotion of the
new effective renewable technologies, improvement of energy efficiency.
In particular, the aim is to reduce imported energy at least to 50% and to increase
the share of renewables at least up to 50%.
Based on the Energy Strategy 2030, the Ministry of Economics elaborated Basic
Principles of Energy Policy for 2016–2020, which was approved by the Cabinet of
Ministers on 9 February 2016. The energy policy favour renewable and domestic
energy sources: share of renewables in gross final consumption of energy shall
increase to 40%. In addition, provisions of the EU Energy Efficiency Directive will be
implemented in order to improve energy efficiency.
3.4.2 MARKET PLAYERS
JSC “Latvijas Gāze” was the only player in the natural gas market in Latvia until end
of 2016. According to the share purchase agreement, which was signed with the
strategic investors in 1997, JSC “Latvijas Gāze” has exclusive rights on transmission,
storage, distribution until April 2017 and license for sale of natural gas, as well as
unlimited and exclusive rights to use Inčukalns Underground Gas Storage for the
same period. JSC “Latvijas Gāze” carried out transmission, distribution, storage and
sale of natural gas in compliance with the licenses issued by the Public Utilities
Commission. However, referring to the amendments to the Energy Law, which were
adopted by Parliament on 11 February 2016, JSC “Latvijas Gāze” was unbundled.
By spinning-off the transmission and storage business areas, a new joint TSO and
SSO commenced operation at the beginning of 2017. The new company is the joint
stock company “Conexus Baltic Grid”. After opening the Latvian gas market on
3 April 2017, in total more than 20 gas-trading companies have been registered until
now from Latvia, Lithuania and Estonia. However, currently it is not possible to
assess how many of these will be active in the market.