Latvia Energy efficiency report - ABB Ltd Latvia | Country reports Latvia Energy efficiency report...

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1 Latvia | Country reports Latvia Energy efficiency report Objectives: – 3.5 TWh of end-user energy savings by 2016 – 40% share of renewables in final energy consumption by 2020 – 60% share of renewables in electricity consumption by 2020 Overview 2009 2000-2009 (% / year) Primary intensity (EU=100) 1 114 - -3.1% ++ CO2 intensity (EU=100) 91 ++ -3.8% ++ CO2 emissions per capita (in tCO 2 / cap) 3.0 ++ 0.7% - Power generation 2009 2000-2009 (% / year) Efficiency of thermal power plants (in %) 28 -- 3.5% ++ Rate of electricity T&D losses (in %) 10 -- -5.3% ++ CO2 emissions per kWh generated (in gCO 2 / kWh) 159 ++ -2.3% ++ Industry 2009* 2000-2009* (% / year) Energy intensity (EU=100) 126 - -2.7% + Share of industrial CHP in industry consumption (in %) 4 -- 5.1% + Energy intensity (EU=100) 0.17 ++ -3.9% ++ 1 The European Union, as the best-performing region, is used as the benchmark. Latest update: January 2011 ++ Among best countries + Better than the EU average - Below the EU average -- Among countries with lowest performances *2008 and 2000-2008 for steel

Transcript of Latvia Energy efficiency report - ABB Ltd Latvia | Country reports Latvia Energy efficiency report...

1 Latvia | Country reports

LatviaEnergy efficiency report

Objectives:

– 3.5 TWh of end-user energy savings by 2016 –40%shareofrenewablesinfinalenergyconsumptionby2020–60%shareofrenewablesinelectricityconsumptionby2020

Overview 2009 2000-2009 (% / year)

Primaryintensity(EU=100)1 114 - -3.1% ++CO2intensity(EU=100) 91 ++ -3.8% ++CO2emissionspercapita(intCO2 /cap) 3.0 ++ 0.7% -Power generation 2009 2000-2009 (% / year)Efficiencyofthermalpowerplants(in%) 28 -- 3.5% ++RateofelectricityT&Dlosses(in%) 10 -- -5.3% ++CO2emissionsperkWhgenerated(ingCO2 /kWh) 159 ++ -2.3% ++Industry 2009* 2000-2009* (% / year)Energyintensity(EU=100) 126 - -2.7% +ShareofindustrialCHPinindustryconsumption(in%) 4 -- 5.1% +Energyintensity(EU=100) 0.17 ++ -3.9% ++

1 TheEuropeanUnion,asthebest-performingregion,isusedasthebenchmark.

Latest update: January 2011

++ Amongbestcountries + BetterthantheEUaverage - BelowtheEUaverage -- Amongcountrieswithlowestperformances

*2008 and 2000-2008 for steel

Source: Enerdata

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1. Overview1.1. Policies: 9% energy savings in 2016Latvia adopted its National Energy Efficiency Action Plan (NEEAP)in2008.Itsetsanenergysavingstargetof3.5TWh(300ktoe)in2016,78percentofwhichmustbeachievedinthehouseholdssector,12percentintheservicessector,6percent in the transport sector and 5 percent in industry. Latvia’s Law on End-use Energy Efficiency was adopted in January2010tocomplywithEUrequirements.ItsobjectivesaretodefinethemainprinciplesoftheNEEAP,implementenergyefficiencymonitoringandcreatetheconditionsforthedevelopmentofamarketforenergyefficiencyservicesinclud-ingESCOs(EnergyServiceCompanies).

Mostenergyefficiencymeasuresconcernthehouseholdssector.Latvia’sEnergyDevelopmentGuidelines2007-2016aimtoreducetheaverageheatconsumptioninbuildingsbyatleast11percentovertheperiodandtoimproveenergyeffi-ciencyinheatproductioninstallations.In2008LatviaadoptedanewBuildingEnergyPerformanceLaw,establishingtherequirementsforthecertificationofenergyauditorsandenergycertificatesforbuildings.Informationcampaignsandenergyauditsarethetwokeymeasuresintroducedtoimproveenergyefficiency in the households and services sectors.

Latviaalsoaimstoimprovetheenergyefficiencyofdistrictheating,whichisthemainsourceofheatinginthecountry.Morespecifically,itaimstoraisetheefficiencyofheatproduc-tionfrom77percentin2006to90percentby2016.Heatdistributionlossesshoulddecreasefrom16percentto14percent by 2016. 1.2. Energy consumption trends: low energy consumption per capitaLatvia’senergyconsumptionpercapitaisalmosthalfthatoftheEUaverage(1.8toein2009).Totalenergyconsumption(primaryconsumption)fellrapidlybetween1995and2000(-4.1percent/year)butincreasedby2.4percent/yearuntil2008.In2009,followingthesevereeconomiccrisisthathitthecountry,energyconsumptiondroppedby11percent.

Figure 1: Total and final energy consumption trends

Themarketshareofoilintotalenergyconsumptionhasdecreasedfrom41percentin1995to30percentatpresent.Theshareofgasandbiomassconsumptionisgrowing,from22percenteachin1995to26percentand31percent,respec-tively,in2009.Theshareofhydroelectricityisaround7percent.

The households and services sector is the largest energy consumerinLatvia,althoughitsshareinfinalconsumptionisdecreasingslightly(from62percentto54percent).Thebuoy-antgrowthintheenergyconsumptionofthetransportsector(+8percent/yearbetween1995and2008)raisedthatsector’ssharefrom18percentoffinalconsumptionin1995to27percentin2009.Industry’sshareinfinalconsumptionisstable,at around 19 percent.

Source: Enerdata

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Figure 2: Distribution of final energy consumption by sector

2. Power generation2.1. Policies: 60% of renewables in electricity consumption by 2020AccordingtothetargetsetbytheEuropeanDirective,renew-able energy should account for 40 percent of final energy consumption(1.9Mtoe)andfornearly60percentofelectricityconsumptionby2020.AccordingtoLatvia’sEnergyDevelop-mentGuidelines2007-2016,electricityproducedfromhighly-efficientCHPusingbiomassshouldaccountfor8percentby2016.

Latvia offers financial support for the conversion of technolo-gies using fossil fuels to renewables. Feed-in tariffs have been introducedforwind,biomassandbiogas,small-hydroandCHP(guaranteedpurchaseonlyforafixedamountofelectricitygeneratedfromrenewableenergyresources).

In2009,taxexemptionswereintroducedforelectricityproduc-tion facilities using renewables and for CHP plants. Latvia also planstoimplementpremiumsforelectricitygeneratedfromrenewablesandindirectstateaidtopromotetheutilizationofrenewableenergies(renewableplantsunder5MW).

2.2. Power generation trends by source: 60% of hydropowerLatvia’selectricitymixisdividedbetweenhydropower(62percentin2009)andgas(36percent);windandbiomassaccountfor1percenteach.Electricitygenerationfromcoaland oil stopped in 2004: they accounted for 2 percent and 11 percent,respectively,in1995.

ElectricityconsumptionpercapitaishalfthatoftheEUaverage(about2,800kWh/capin2009).Electricityaccountsfor14percentoffinalconsumption,comparedwith10percentin1995.Indeed,electricityconsumptiongrewby4.5percent/yearbetween2000and2008,triggeredbyasoaringconsump-tioninthehouseholdsandservicessector(+6.6percent/year).In2009,electricityconsumptionfellbyaround7percent.

1.3. Energy efficiency and CO2 trends: rapid improvement in energy and CO2 intensities Latvia’sprimaryenergyintensity(totalenergyconsumptionperunitofGDP)hasbeendecreasingveryrapidly(by5.3percent/yearbetween1995and2009).Thatimprovementislinkedtothedecreaseinfinalenergyintensity(finalenergyconsumptionperunitofGDP),whichdroppedby4.8percent/year,andtoefficiency gains in the electricity sector: Latvia ceased to pro-duceelectricityfromoilandcoalandincreasedpowergenera-tionfromgasto36percent(13percentin1995).Measuredatpurchasingpowerparity,Latvia’sprimaryenergyintensityisstill14percenthigherthantheEUaverage.

Most of the rapid reduction in the CO2intensity(CO2emissionsperunitofGDP),whichfellbyaround6percent/yearbetween1995and2009,wasachievedthroughoverallenergyefficiencygains,sinceenergyintensitiesaredecreasing;substitutionsbyfuelswithalowercarboncontentexplainjust13percentoftheoverall reduction.

Source: Enerdata

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Figure 4: Energy and CO2 intensity trends

Source: Enerdata

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Figure 3: Electricity consumption trends by sector

TherateofT&Dlossesishigh(60percenthigherthantheEUaverage),despiteanoticeablefallsince1996(byalmost60percent).

Thecarbonfactor(CO2emissionsperkWhgenerated)isabouttwiceaslowastheEUaverage,at160gCO2/kWh(260gCO2/kWhin1996).Thatpositiveperformanceisduetotheshareofhydropowerandtofuelsubstitutionsinthermalgeneration(fromcoalandoiltogas).

2.3. Efficiency of the power sector: high efficiency and low CO2 intensity TheaverageefficiencyofLatvia’spowersectorishigh,at51percentin2009,owingtothelargeshareofhydropowerinelectricity generation. The efficiency rate has increased by 12 percentagepointssince1995,astheefficiencyofthermalpowerplantsgrewfrom14percentin1995to28percentin2009.Thisimprovementisduetothegrowingshareofgas-firedgeneration(firstCCGTunitin2008).However,theeffi-ciencyrateofthermalpowerplantsis28percentlowerthantheEUaverage.

Source: Enerdata

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Source: Enerdata

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Source: Enerdata

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Figure 5: Power generation by source Figure 7: Thermal electricity capacity, by technology

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increasedbetween1995and2005,andthendeclineduntilreachingits2000level(37percentin2009).Thesharesofelectricityandbiomassgrewsignificantly:from17percentand7percent,respectively,to23percentand21percent,respec-tively,in2009.Coalconsumptionisalmostinsignificantbutitsshareincreasedfrom2percentin1995to7percentin2009.Oilconsumptiondecreaseddramaticallyovertimeandnowaccountsfor11percent(downfrom36percentin1995).

Source: Enerdata

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Figure 12: Energy consumption of industry, by branch

Between2000and2009,theshareofenergy-intensiveindus-triesremainedstableataround40percent.Steelandnon-metallicmineralsarethelargestconsumingsectors(18percentand17percent,respectively,in2009,comparedwith24percentand11percent,respectively,in2000).Thechemicalsectoraccountsfor4percentofindustrialenergyconsumptionandtheshareofthepapersectorismarginal.

3. Industry3.1. Policies: 1.6 TWh of energy savings in industry by 2016Latvia’s National Energy Efficiency Action Plan sets a target of 1.6 TWh of energy savings in the industrial sector by 2016 (about137ktoe).Energyauditswereintroducedinthemid-1990s,andareaimedatimprovingtechnicalprocessesandrestructuring the operations of industrial enterprises. Latvia alsoleadsinformationcampaignsonthemosteffectivetechni-cal solutions to increase the use of energy-efficient and innova-tive technologies.

3.2. Energy consumption trends: low industrial consumptionAfteradeclinebetween1995and2000,industrialenergyconsumptiongrewby2.1percent/yearuntil2008;in2009,itfell by 12 percent.

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Source: Enerdata

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Figure 11: Energy consumption of industry, by source

Source: Enerdata

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Source: Enerdata

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3.3. Energy intensity trends: efficiency gains in the steel sectorThe energy intensity of the Latvian industry is decreasing rapidly(by4percent/yearbetween2000and2008).Thatimprovementwasachievedthroughefficiencygainsinthesteelindustry,whichisthecountry’slargestindustrialconsumingsector:theenergyconsumptionpertonofsteelproduceddecreasedby3.9percent/year.Efficiencygainsinthecementsectorwerealmostinsignificant(-0.3percent/year).

DespiteahighshareofCHPcapacity(allthermalpowerplants),CHPinindustryislimited(4percentin2009).Thiscanbeexplainedbythereducedsharesofthepaperandchemicalsectors,whicharebranchesinwhichCHPusuallyplaysanimportantrole.

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Source: Enerdata

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Source: Enerdata

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Figure 14: Share of Industrial CHP in industrial consumption

Theenergyintensityofthemanufacturingindustry(ie,exclud-ingconstructionandmining)decreasedlessthanoverallindustrial energy intensity: -2.8 percent/year between 2000 and2008.Thatdecreaseismainlyduetoenergyefficiencyimprovements,sincechangesinthestructureofthemanufac-turingindustryplayedamarginalrole.Indeedtheshareofenergy-intensive industries in the value added dropped by just 1.1 percentage points between 2000 and 2008.

Source: Enerdata

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Figure 15: Trend in energy intensity of manufacturing and structural

effector power generation

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