Country policy profile - Latvia. August 2015

In Latvia, renewable electricity generation is stimulated through a complex support system based on a feed-in tariff, which also includes elements of a quota system and tenders. The existing feed-tariff is on hold until January 2016 due to concerns about corruption and a lack of transparency in the way it was carried out since 2007. The existing state support mechanisms for energy production from renewable energy resources are being assessed and revised. Stringent supervision of subsidized electricity producers, stricter controls and a limited timeframe for the implementation of RES projects has been introduced. At the same time, a new tax for subsidized electricity producers was introduced in January 2014. The tax should be paid by companies receiving financial support for power generation from renewable energy sources or from combined heat and power plants. Since 1 January 2014 RES-E is promoted also through net-metering. Heating and cooling from renewable energy sources is promoted through different tax benefits. Also the only incentive currently available for renewable energy sources in the transport sector is a tax regulation mechanism (source: RES-Legal Europe)