Baltic Energy Market Interconnection Plan GRIP 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: \\ Security of supply – uninterrupted energy delivery and well developed infrastructure; \\ Competitiveness- energy based on market principles, which promotes development of the economy and its competitiveness in the region and in the World; \\ 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. 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.

3.4.2 MARKET PLAYERS

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BEMIP Gas Regional Investment Plan 2017