Development of

bioenergy policy in Latvia:

successes and challengessuccesses and challenges

Andis Kārkliņš

5-6 November 2014, Sigulda

What we already have……..What we already have……..

Electricity production from

renewable energy sourceselectricity produced in CHP from natural gas2012. - 1811,8 GWh2013. - 1996,13 GWh

Status on 01.10.2014

� 54 biogas plants, including

- municipal waste landfills – 7,

- domestic wastewater – 1,

- food industry residues or wastewater – 2,

- agriculture - 44- agriculture - 44

� Total installed capacity – 55.42 MW

� Electricity production in 2013 –

more than 275.22 GWh

� Target planned by “Development Programme of Biogas production and utilization 2007 -2011” for 2010 was 537 GWh

Biogas plants in Latvia on 01.07.2014

Status on 01.10.2014� 26 biomas cogeneration stations with

total installed capacity of 56.08 MW

� More than 169.73 GWh of electricity produced in2013

� In 2014, a 23 MW biomass cogeneration station was� In 2014, a 23 MW biomass cogeneration station waslaunched in Jelgava

� Forecast for 2014 – 313.29 GWh electricityproduction

Foto: http://www.fortum.com/countries/lv/par-fortum/biomasas-kogeneracijas-stacija/pages/default.aspx

Energy production from renewable energy

sources and targets by Directive EC2009/28

Tasks and opportunitiesTasks and opportunities

Objectives and targets

� EC Directive 2009/28 is in force setting targets for renewable energy sources for 2020 (a 40% target for Latvia)

� European Council has set EU target to reduce emissions by 30% in 2005-2030 (2005 - baseline for Latvia), increase proportion of renewable energy sources in energy balance by 27% and improve energy efficiency by 30%by 27% and improve energy efficiency by 30%

� Latvia has set target to develop new state support instruments for electricity production using local/renewable energy sources in 2015

� «Latvian Energy Strategy 2030» aims at 50% of energy production using local/renewable energy sources

� European Commission has published «Guidelines on State aid for environmental protection and energy 2014-2020»

Can the set targets be

matched with reality?� Environmental policy: GHG, environmental protection,

water pollution, waste management (Waste Directive)

� Agricultural Policy: crop rotation, support of certain

agricultural sectors, business diversificationagricultural sectors, business diversification

� Regional policy: economic activities in rural areas and

small towns

� Energy policy: decentralization of energy supply, regional

security, development of RES rather than moratorium of

development

� Economics policy: support of domestic producers

Forest proportion in Latvia11

24%1930

Source: E. Vīgants

25%

27%

36%

38%

41%

45%

24%

54%

1933

1949

1961

1973

1983

2002

2008

Electricity produced from wood biomass

12

Source: E. Vīgants

Latvia Lithuania Estonia

Finland Sweden

Distribution of land use categories in

Latvia (01.01.2014)

Source: http://www.vzd.gov.lv/files/zemes_parskats_par_2013_gadu_20140225.pdf

Distribution of agricultural

land in Latvia

Grass from seminatural meadows

Potential problems in utilization of

seminatural grassland biomass for

biogas production?

� Low quality of green biomass

� Small amount of resources in a particular area, and consequently high costs for collection and transportationtransportation

� Problem with application of digestate (solid matter residues after biogas production) on other fields

� Weak link between the Ministry of Agriculture and the Ministry of Environmental Protection and Regional Development that results in lack of information on grassland distribution and management

� Forest (wood increment) 26.8-33.5 GJ/ha

How to efficiently use the valuable land?

Energy production possibilities in Latvia

from 1 ha/year

� Forest (wood increment) 26.8-33.5 GJ/ha

� Crops (biogas) 100-150 GJ/ha

� Biodiesel fuel (from rapeseeds) 37-45 GJ/ha

� Bioetanol fuel (from grains) 27-36 GJ/ha

The real situation must be

understood

andand

let’s stop to deceive

ourselves

18

WE SELL „CHEAP“ AND BUY „EXPENSIVE“...

IS IT BENEFICIAL FOR LATVIA?

Import/export of energy resources in Latvia

Wood export

ca 7 TWh a year

Gas import

ca 7 TWh a year

Price 54 EUR\MWh

19

ca 7 TWh a year

Price 14 EUR\MWh

Price 54 EUR\MWh

Latvian economy looses ca

280 million EUR/year

For comparison:

Price of Latvian biogas

25 EUR\MWh(Agro Iecava)

GREEN ENERGY – THE GOOD NEEWSMORE EXPENSIVE HEATING WITH NATURAL GAS

40

50

60

70

80

EU

R/M

Wh

gāze vai jaukts

atjaunojamā enerģija

natural gas or mixed

renewable energy

20

0

10

20

30

Ludzas bioenerģija

Norma K Malpils

Valkas novada dom

e

Kuldīgas siltumtīkli

Madonas siltum

s

Pļaviņu kom

unālie pakalpojumi

Valmieras siltums

Rujienas Siltum

s

Vidzemes enerģija Gulbene

Limbažu siltum

s

Krāslavas nam

i

Talsu bio-enerģija

Iecavas siltums

Simone -Alūksne

Aizkraukles siltum

s

Vangažu nam

saimnieks

Salaspils siltum

s

Rīgas siltum

s

Ogre

Bauskas siltum

s

Daugavpils siltum

s

Ventspils siltum

s

Ozolnieku KSDU

Liepājas enerģija

Fortum Jelgava

Rēzekne

Tukum

a siltums

Jēkabpils siltum

s

Saldus siltums

Olaines ūdens un siltums

Jūrmalas siltum

s

Lielvārdes remte

Grobiņas siltums

EU

R/M

Wh

What shall be done?� Possible changes must be assessed and justified with

figures and facts paying particular attention to natural gas cogeneration.

� There is a need for calculations to evaluate the possibility for change in legislation towards supporting decentralization of energy supply, because it will help decentralization of energy supply, because it will help to achieve:

o Regional self-supply with energy

o Regional development

o Increase of the share of biomass in heating

o Reduction of costs for heat transfer

THE MAIN ADVANTAGES OF BIOENERGY

� Environmental aspectso Important energy source - fossil fuel – is savedo No emissions of greenhouse gases

� Economic aspectso Low costs – may compete with energy from coal, heavy fuel oil and

natural gaso Low transporting costso Low transporting costso Good possibilities for technology exporto Higher income from taxes from municipalities, because more

employees are involved in making biofuelso Diversification of agriculture and improving efficiency of energy

supply systemo Reduction of import of energy resourceso Secure energy supply: biofuels are local energy source, and its

supply is not dependent on political situation outside state borders

The issue of attitude and propaganda

Thank you for attention!

� Address: Mūkusalas Str. 46, Riga, LV1004, Latvia,

or Raiņa Str. 29, Jelgava, LV-3001, Latvia

� Web: www.latvijasbiogaze.lv� Web: www.latvijasbiogaze.lv

� E-mail: latvia.biogas@gmail.com

Or directly:

� Cell phone: 29425176 – Andis Kārkliņš

� andis.karklins@apollo.lv