Riga 4th December 2008 Renewable energy: is there a Latvian masterplan? Ieva Indriksone Riga Graduate School of Law

Riga 4th December 2008 Wind farms in Latvia - present situation 27MW installed base Since 2003 no new wind farms built. Quota for new wind energy production Tender in 2008 run by the Ministry of Economy But no bidders (Nov 2008) Grobiņa

Riga 4th December 2008 What are the barriers? –Government regulations? –Environmental impact assessment? –Building permission? –Connecting to the grid? –Price? –All of the above?

Riga 4th December 2008 Cabinet of Ministers Nr 503 (2007) Regulations (Electricity production from renewable resources). Many documents required from tender applicants: 1.Company ownership documents. 2.Company’s financial statements. 3.State Revenue Service tax statements. 4.Bank guarantee for the financing. 5.Guarantee from wind turbine suppliers. 6.Environmental impact assessment. 7.Building permission certificate. 8.Explanation of the implementation of the project.

Riga 4th December 2008 Environmental impact assessment Time consuming and unpredictable in time and effort. “Natura 2000” protected areas are excluded. Micro biological protection areas are defined only case by case. Bird studies are an issue. Environmentalists resist larger wind farms.

Riga 4th December 2008 Building permission Wind farms not permitted in many zoned areas. Re-zoning agricultural land to industrial land is complicated. Building permission is issued subject to zoning (  local politics). Extensive infrastructure development required (roads, high-voltage lines, grid connection).

Riga 4th December 2008 Connecting to the Grid Cost implications - how far away is the Grid connection point? - cost of construction of the high-voltage transmission lines - only one Grid operator, therefore limited room to negotiate Who ensures Grid connection safety and reliability? Technical capacity and volume of the connection point No obligation from Latvenergo to improve sub- station capacity.

Riga 4th December 2008 Offshore wind farms - the future? Offshore wind farms perhaps have the most potential But there is no legislation in Latvia regulating building offshore The most attractive sites are in the shallower areas (sēklis) But shallower areas have environmental issues with birds and fish. Offshore wind map exists for the eastern part of Riga bay, listing possible sites for wind farms. But no other offshore wind areas have been assessed yet.

Riga 4th December 2008 Conclusions

Riga 4th December Government does not have a wind energy development strategy Ministries of Economy, Environment and Regional Development to coordinate Ministry of Economy to set renewable energy targets Ministry of Environment to define sensitive areas Local municipalities to promote the development of wind farms

Riga 4th December Market liberalization Use Latvenergo as a state-owned instrument for implementing government policy Actively promote green energy production Reduce the barriers to wind farm developers Latvia to engage as active participant in the Nordic/Baltic energy market.

Riga 4th December Energy tender Has not been prepared from the applicants’ point of view: - uncertain time required to obtain construction permits because of re- zoning - local applicants vs. other EU members - level and areas of risk due to incomplete state regulations or systems - corruption of some decision makers in municipalities and grid operators.

Riga 4th December Wind Energy Association could play a more active and visible role identify key issues and lobby the public institutions build more support among Nordic partners.