1. SWOT analysis of Vidzeme planning region Dr. Marika Rošā Prof. Dagnija Blumberga A report in the Project Wood Energy and Cleantech

2. Ekodoma  Founded in 1991  Independent engineer-consulting company located in Riga  Our main fields of knowledge are energy, environment, and economics  Our team consists of 15 active, well- educated and continuously improving their knowledge employees

3. SURVEY OF MANAGEMENT OF ENERGY PROCEDURES IN VIDZEME PLANNING REGION

4. Objective of the report to present an analytical survey of the management of planning procedures and the existing planning documents, to evaluate if these procedures and documents are sustainable in the field of: energy and forestry in the Vidzeme Planning Region to compare them with the Latvian national policy and the directions of development

5. VPR POLICY DOCUMENTS Long term and medium term documents

6. Territorial Plan of VPR 2007- 2027  Developed in 2006  Two medium-term objectives: To ensure availability of natural gas in the national and regional centres; To ensure a qualitative supply of the electrical energy to customers and to improve the distribution, supply and efficiency of energy.

7. Inconsistency  The two medium-term objectives are contradictory  The first objective is directed towards a complete gasification of the Vidzeme region that would mean the eradication of the local energy resources in the future  At present, in the areas where the natural gas is not available they use mostly biomass  The activities to reach the second objective envisage a wider use of the renewable energy resources

8. Vidzeme study  The economic profile of the VPR elaborated in 2010  presents the use of the local resources in the production of the thermal energy as one of the perspectives that will also provide additional jobs to local people, will reduce the dependency of the energy production from the imported resources and their prices on the world market

9. VPR Development Programme 2007-2013  Natural resources are used efficiently applying environmentally friendly and modern technologies: To support the research on the availability of the natural gas in larger populated areas and industrial territories; To promote the use of gas and introduction and use of the alternative energy resources in the economic sector; To promote the introduction of the environmentally friendly and energy saving technologies.  Improved energy efficiency of public and dwelling houses and heat supply facilities, decreased heat losses

10. ENERGY PLANNING DOCUMENTS OF VPR IN THE CONTEXT OF THE NATIONAL POLICY

11. Latvian energy policy Main energy policy documents were developed in 2006 EU objectives 20-20-20 (40% RES in Latvia by 2020) presented in 2008 Sustainable development strategy of Latvia 2030 – RES can make share of 42% in 2020 and 60-65% in 2030

12. Independent studies on the issue  Several independent studies indicate that with the existing policy the objectives will not be reached  Latest figures prove this statement

13. Fuel structure in centralised district heating in Latvia 0% 20% 40% 60% 80% 100% 20042005200620072008 Year Fuel rate, % DieselMazoutCoal PeatNatural gasWood Gas from dumpsite wasteSludge gas of sewage waterStraw

14. Fuel structure in centralised district heating in Vidzeme

15. National planning documents There are a number of laws and legal acts that govern energy sector in Latvia, including RES However political decisions differ from the policy On May 17, 2011, the Cabinet made a decision not to give rights to sell the electrical energy produced of RES in the framework of the obligatory purchase The Law of the renewable energy that was submitted to the Parliament on February 22, 2011, is not approved either New energy strategy 2030 under development Energy Strategy 2050 presented by Riga Technical University on 7 September 2011

16. Vidzeme policy vs national policy  The main VPR planning documents, as well as the national energy strategy were elaborated in 2006 – 2007  The policy of the Vidzeme PR and the national policy supplement each other: Both promote the increase of the fossil fuel rate in the total final energy consumption

17. Municipal documents – bottom up approach  Main direction - most of the municipalities in the Vidzeme elaborate their development programmes at the moment  but the programmes that are already available show a tendency towards the energy efficiency and the renewable energy resources  The priorities in the energy sector are directed towards a wider use of wood and other renewable energy resources, the connection to the gas pipeline is not planned

18. FOREST PLANNING DOCUMENTS

19. National and Vidzeme forestry policy One of the long-term objectives is a sustainable forestry and forest management with balanced economic, ecological and social aspects Forestry is one of the most important sectors for the development of the Latvian economy The main focus is on increase of products with a high added value, thus ensuring the competitiveness of Latvia

20. AVAILABILITY OF ENERGY RESOURCES

21. Research and discussions During the last three years more than 20 studies on the biomass have been elaborated and published in Latvia The experts have evaluated the potential of the biomass in Latvia from 8.39 up to 12.6 million m 3 (30 TWh)

22. Market analysis results 0 500 000 1 000 000 1 500 000 2 000 000 2 500 000 3 000 000 3 500 000 20052006200720082009 Wood raw materials, m 3 PulpTimber materialsEnergy

23. Biomass (woodchip) resources, mil.m 3 /year Source: Dagnis Dubrovskis, Latvian University of Agriculture, 7 September 2011

24. SWOT ANALYSIS

25. Background information The SWOT analysis is done for the strategy of Vidzeme Planning Region to shift to renewable energy sources until 2035. This means that the Vidzeme region will diminish to minimum the use of fossil fuels in district heating systems and in other sources. Exception is the use of natural gas for cooking however use of biogas should be considered in the further analysis.

26. STRENGTH A great potential of the renewable energy resources in VPR Lack of the natural gas pipelines in the largest part of the VPR territory Possibility to involve the local labour force Sustainable forest management Low costs of wood energy resources in comparison with the natural gas

27. WEAKNESS #1  Lack of sustainable national policy  Participate and act: Vidzeme region as one of the five regions in Latvia can ask from the responsible institutions (Ministry of Economics, Ministry of Agriculture, government, etc.) a clear progress of the energy and forestry policy for the next 30 years

28. WEAKNESS #2  Lack of responsibility for the achievement of the objectives of the renewable energy resources and the energy efficiency  Get involved: the increase of the share of renewable energy resource and the energy efficiency is not only a responsibility of the state and/or individuals  It is also a possibility for local municipalities to promote their economic development and to attract new labour force

29. Example for solution of weakness #2 Source: Renesco Valmiera, Gaujas street 13

30. Weakness #3  Shortage of professional knowledge how to prepare and use the biomass  Learn more: one of the solutions is an elaboration of a training course in the region and inviting all wood processing, forestry and other enterprises, as well as the owners of private forests in the region

31. Weakness #4  Lack of motivation to improve the local energy systems  Motivate: to increase it, VPR can organise competitions of the best heat supply system and other motivating events

32. Weakness #5  Shortage of experience of an efficient use of the renewable energy resources in heat supply systems and that does not facilitate the reconstruction of boiler houses  Get in touch with others and learn

33. Let’s not have this more!

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