1. Market possibilities within the energy efficiency in Latvia The Royal Danish Embassy in Riga prepared for The Danish Board of District Heating Inese Leja-Raphael Commercial Adviser +371 6722 6210, ext. 32 inelej@um.dk The Danish Embassy in Riga Pils iela 11 LV 1863, Riga, Latvia Tlf.: +371 6722 6210 www.letland.um.dk Den Danske Ambassade i Riga

2. Facts About the Baltics

3. EU funds in Latvia 2014-2020 (by the Ministry of Finance) Total amount of EU funds to the three Baltic countries: EUR 14.5 billion Total amount of EU funds to Latvia: EUR 4.4 billion

5. Preliminary allocation of EU funds for 2014-2020 in the Ministry of Economics The total amount for 2014-2020 within the Ministry of Economics is app. EUR 686 million

6. Energy efficiency measures in district heating systems

7. District heating in Latvia Based on information from the Latvian Ministry of Economics, EU funds to support renovation and maintenance of the district heating systems in Latvia will constitute app. EUR 53.2 million The money shall support heat loss reduction, reparing and maintanance of pipelines, boiler houses, transmission systems, etc. Heat losses within DH in Riga in average constitute 13%, but in other areas of Latvia, heat losses may be as high as 30% Latvia’s overall goal is to reduce heat losses to 10% by 2030, but reduction would also lead to: Lower heating bills for consumers Higher potential for energy performance contracting and diversified energy services

8. Current situation in Latvia Most DH systems were built over 25 years ago In 2011, 6.94 TWH of thermal energy for DH was produced by 663 boiler houses (heat plants) 83 CHP plants Latvia has app. 2,000 km of heating pipelines – 676 km in Riga 2004-2006: EU funds covered the reconstruction of 50 km 2007-2013: EU funds covered the reconstruction of 143 km 2014-2020: Investment needs are substantially higher than the potentially available funding

9. Main challenges in achieving energy efficiency in DH Lowering heating bills for consumers by ensuring energy efficient district heating High potential for energy performance contracting and diversified energy services Low energy efficiency in the final energy consumption Insufficient participation of society in energy efficiency improvement measures Obtaining the significant energy efficiency potential in the centralized heat supply system Reaching the overall goal of reducing heat losses to 10% by 2030

10. Priorities for 2014-2020 (I) Reconstruction and construction of boiler houses Objective To increase efficiency of thermal energy production plants and foster the use of local and renewable energy resources in centralized DH Target group Users of thermal energy, municipalities, municipal enterprises, energy companies, institutions, etc. Type of aid Grants (for measures to increase efficiency and for use of RES (boiler and auxiliary equipment)

11. Priorities for 2014-2020 (II) Reconstruction and construction of transmission and distribution systems Objective To reduce thermal energy losses in transmission and distribution systems by reconstructing existing systems and constructing new systems Target group Users of thermal energy, e.g. municipalities and enterprises Type of aid Grants for measures to reconstruct existing transmission and distribution systems as well as construct new systems

12. What do we offer? Market research Partner search Sourcing and outsourcing Conference and exhibition facilities Recruitment Company establishment and setting up Events with the ambassadors commercial work in the baltic states The Commercial departments at the Danish Embassies in Riga, Tallinn and Vilnius are part of The Trade Council. Our mission is to increase Danish investment in and exports to the Baltic. The Commercial departments are working closely together – also with the Commercial department in Helsinki, Norway, Sweden and Iceland.