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Highly honourable Mr. Commissioner, honorary guests, representatives of local governments, ladies and gentlemen,
Let me thank you for the invitation to participate in this conference devoted to energy efficiency issues.
In the modern world the importance of energy maters can hardly be overestimated. Energy has a direct impact on the economy, the society and businesses. Stable energy supplies are an essential pre-condition for successful economic activities. No man’s life can be imagined without consumption of energy. Therefore, it is important for every country to strengthen its energy independence in order to guarantee its citizens access to energy resources.
Development of scientific technologies leads us to an ever increasing range of energy resources. Energy efficiency itself is also an energy resource in view of the fact that saving of energy helps us in meeting our energy needs in such a way that the necessary amount of energy is reduced.
Currently the economic situation has become worse not only in Latvia but in many other countries as well. The global economic crisis makes an increasing ‘imprint’ on the situation in many industries and branches of the economy. However, every crisis is also an opportunity for reconsideration and finding motivation for new challenges.
Therefore we will pay special attention to diversification of energy supply routs, energy efficiency and to use of local and primarily renewable energy resources. More extensive use of wood farming will also improve the situation in the wood processing industry. These objectives are covered in the Latvian Energy Sector Guidelines for 2007-2017.
Increasing safety of supplies for the Baltic States is also a priority of the European Union. In the meeting of the European Council in October last year, a decision was passed on the development of a spcial roadmap to promote integration of the Baltic energy markets into the common EU energy market. This plan will be aimed at more active construction of cross-border inter-connections by eliminating isolation of the Baltic States.
Energy efficiency is undeniably a key priority of our energy policy because the cheapest and ‘purest’ kilowatt-hour is one which is not consumed, i.e., which is also not produced. Today energy efficiency is not just a modern term; without this element no further technological progress would be possible.
Even disregarding the high and unstable oil prices and the present economic crisis which has caused a recession of the economies of Latvia and other European countries, we still have sufficient reason for developing a strong programme aimed at enhancing energy efficiency at all levels:
1) Competitiveness and strategy According to various studies, the European Union could save up to 20% of its current energy consumption by using feasible methods.
2) Environmental protection and Kyoto requirements Saving energy is certainly the fastest and most efficient way how to reduce emissions of the greenhouse effect gases and improve air quality, in particular in densely inhabited civilian areas.
3) Safety of supplies. In view of the current developments, in 2030 dependence of the European Union on imported energy resources will reach 90% of the oil demand and 80% of the gas demand. Now it is impossible to anticipate oil prices in 5, 10 or 20 years. Therefore energy efficiency is key approach, first, to maintain the demand for energy at the current level and to gradually reduce it. This would be a considerable contribution towards a coherent and balanced policy aimed at promoting safety of energy supplies.
The European Union has set the so-called 20-20-20 objectives, namely, to reduce greenhouse effect gas emissions by 20% in comparison with the emission level in 1990. This package also envisages a 20% improvement in energy efficiency with regard to the current energy consumption, and a 20% share for renewable in the EU energy mix.
EU’s Green Book on Energy Efficiency is an initiative aimed at identifying those shortcomings which currently impede reaching the needed energy efficiency – for instance, lack or shortage of respective initiatives, information, financing mechanisms, etc.
Latvia has also become more committed to seeking energy efficiency solutions. Before the European Union defined the above objectives, already in 2005 the Latvian Ministry of Economics integrated concrete objectives and funding for energy efficiency measures into its new policy planning document „Energy Sector Development Guidelines of Latvia for 2007-2016”.
The Government has approved the first Latvian National Action Plan on Energy Efficiency for 2008-2010.
Ensuring improved efficiency of the use of energy resources and energy in the production, transportation and consumption stages is one of the main tasks of the national development and energy policy. A successful solution will have a positive impact on safety of energy supplies, reduction of climate changes and competitiveness of the national economy.
The main challenges in the field of energy efficiency are basically related to improvement of the quality of public utilities infrastructure, tackling the waste of energy resources, as well as development of a support policy for enhancement of energy efficiency of buildings and systems of heating companies.
Strategies for enhancement of energy efficiency and for saving energy should be based on a common national strategy by using such important tools as taxation policy and various assistance mechanisms.
Energy efficiency measures differ by the amount of investment needed; pay back period and complexity of implementation. However, before any investment-intensive measure an assessment of energy consumption or audit is needed.
By 2010 it is necessary to reduce the specific energy consumption in buildings (from 220-250 kWh/m2 per year to 150 kWh/m2 per year). Investments needed for the use of the energy efficiency capacity in the housing sector is estimated in the amount of 1.1 billion LVL.
By 2016 the average energy efficiency level in Latvia should be increased from 68% to 80-90%. To this end, the necessary amount of investments into heating sources (excluding cogeneration plants) is 110 million LVL.
By 2016 the average energy loss level in Latvia in heating transmission and distribution networks should be reduced from 18% to 14%. Reconstruction of heating networks in the next decade would require investments of about 100 million LVL.
The best ratios of investment efficiency can be achieved by ensuring simultaneous measures in energy production, including development of cogeneration activities and in the stages of management, distribution and consumption. This would ensure a maximum reduction in energy loss in buildings and distribution systems, optimisation of the energy production process, savings of fuel and other raw materials, as well as a reduction in harmful emissions.
According to the guidelines included in the National Development Plan, a set of documents are being drafted in order to ensuring financing fro the above objectives from the European Regional Development Fund, Cohesion Fund, Structural Funds and country’s co-financing. Energy efficiency measures will also be financed by using the revenues from trade of greenhouse effect gas emissions.
Support to investments aimed at enhancing energy efficiency in the housing sector and at more extensive use of renewable energy resources in any type of heating supplies should be available irrespectively of the type of ownership rights or consumer group (household, commercial entity, public sector). Support to investments aimed at enhancing energy efficiency in the housing sector will be provided according to the action plan on enhancement of building’s energy efficiency based on its energy audit.
In view of the fact that households possess the highest potential for enhancement of energy efficiency, the Government has defined that its current priority in the energy sector is heat insulation of houses. A big energy saving potential is associated with the service, production and transport sectors. The total calculated target of energy savings in 2016 amounts to 2701 GWh. The currently available funding is established and the respective documentation is prepared in order to launch first projects in the nearest future.
No doubt, the current funding allocated for the purpose is insufficient in order to fully achieve the objectives, however, it is important to commence the process to attain the first results as soon as possible.
Thank you!
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