Energy  

         

Introduction

About the publication

Environmental policy

Social - economic indicators
Industry
Energy
Agriculture
Services
Transport
Tourism

Nature of Latvia

In 2000, the energy sector employed 1.7% of labour force and its added value contribution in the economy was 3.9%. The energy sector is one of the few to show a significant growth in employment (by 35.7%) since 1990.

Assessment of the eco-efficiency of the energy sector indicates a heavy contribution of volatile organic compounds (VOC) pollution, which has significantly changed since 1996. In 1996, Latvia produced 9.1% less electrical energy than it purchased, which is not typical for the country.

Eco-efficiency in the energy sector in Latvia, 1997-2000
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Environmental profile of the energy sector in Latvia, 1999
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A significant portion of the total amount of sulphur dioxide emitted in 1999 was produced by the energy sector (58.3% of the total SO2 emitted). Energy consumption has decreased since 1997, despite the positive GDP and growth in the sector (Figure 3.18). This decline is associated with a decrease in heating fuel consumption, and is therefore related to heating energy saving actions, and to a lesser degree with energy saving in manufacturing technologies.

Oil products represent the main energy resource in consumption. The main energy producers in 2000 were hydroelectrical and thermal electrical power stations, which provided 47.3% and 19.5% of the electricity. The above values indicate why oil products are the dominating energy resource.

The contribution of oil products in consumption (including heating and petrol fuel) fluctuates between 35% to 41% (including heavy oil - 15%). The biggest consumers of heavy oil are heat producers (70%) and industry (about 30%). The consumption is mostly concentrated in the Latgale (25%) and Kurzeme (20%) regions.

The continuing rise in heavy oil has led to an increasing contribution of gas as an energy resource in Latvia (34% in 2000). The biggest gas consumers are in heat production (60%) and industry (about 25%); other consumers utilize about 15% of the total. A total of 82% of the gas consumption is concentrated in the Rîga region.

Solid fuels include coal, peat and wood. Coal consumption has continued to decrease in recent years (about 20% yearly). It is not planned to increase consumption of peat as a fuel, and the consumption levels will probably remain stable for several years, with most of its use near peat extraction and processing locations. The use of wood as a fuel is being developed both in consumption and in efficiency. The biggest fuel wood consumption is for home heating (about 60%), central heating (about 25%) and other for uses (about 15%).

Changes in consumption of energy resources and GDP in Latvia, 1996-2000
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The typical resident of Latvia consumed on average 1.5 tonnes of oil equivalents in 1999, which is about 57.8% less than in EU countries.

Stable patterns are evident for consumption of electricity. During the past five years, consumption in industry and losses in distribution have declined. Consumption in agriculture and transport have stabilized. Residential consumption has increased (due to improvement of living standards), and the consumption in some other sectors related to services.

The largest share of electricity production in Latvia is by hydroelectrical power stations (mainly in the Daugava River). However, hydroelectrical power production is dependent on climatic, and hence also on hydrological, factors. In years with low precipitation, electrical energy is imported, but in wet years electrical energy can be exported. On average, Latvia can produce about 60-70% of the required amount of electricity.

However, the above parameters do not fully explain the situation. Hydroelectrical power stations provide a system in which the amount of generated energy is very rapidly increased to high levels, or rapidly decreased. Therefore, the system is very valuable during hours of maximum consumption, when it serves not only Latvia but also neighbouring countries. In contrast, energy production in Lithuania (Ignalina nuclear power station) and Estonia (thermal electrical power stations burning brown coal) cannot ensure this level of control over energy production. Therefore, during a daily cycle, the countries co-operating in the energy system can change their status from an importer to exporter, or vice versa.

While the amount of electricity produced by small hydroelectrical power stations and wind generators is still low (0.32% and 0.07%, respectively), their absolute amounts of produced energy have increased dramatically by three times over a period of three years.