At the same time, KEM informs that after discussions with the President of the State, KEM together with industry experts in focus groups will continue work on the improvement of the strategy project, moving it further for wider discussions with cooperation partners.
Latvia’s energy strategy until 2050 sets goals and priorities in order to adapt to rapid changes in the global energy sector and ensure a stable, safe and sustainable energy supply in the country.
The strategy mentions that the energy sector is important in the development of Latvia’s economy and increasing competitiveness. Energy market fluctuations, supply chain disruptions, climate change, geopolitical conditions are factors affecting energy availability and prices, which further highlight the need for energy resource diversity.
The Minister of Climate and Energy, Kaspars Melnis (ZZS), states that this strategy should be built according to the principles of mathematical modeling, providing the opportunity to adapt to uncertainty, and to consciously advance the energy sector, which plays an essential role in the national economy – in the context of energy security, price, available volume and also energy renewability.
The strategy mentions that the energy sector in Latvia accounts for 10% of the gross domestic product (GDP) and covers a wide spectrum of resources, including electricity, heat and fuel. The industry plays a crucial role in the national economy and in ensuring the welfare of society – starting with industrial production and ending with households.
The strategy has developed various development scenarios that Latvia could face until 2050 – both optimistically and pessimistically. Alternative scenarios offer flexibility to adapt to changes in global and local conditions. Such an approach ensures the adaptability of the strategy to different development paths, so that Latvia is ready for both opportunities and challenges in the future.
At the same time, KEM states that the goal of all scenarios is to provide the cheapest available energy basket for Latvian citizens and entrepreneurs.
Scenarios are created based on how global events develop. In a favorable scenario, the state’s task is to benefit as much as possible from the opportunities provided, but in an unfavorable situation, to help society and companies overcome difficulties – to stabilize the economy and ensure security of energy supply.
The baseline scenario offers a vision of a possible energy development path based on current trends. The basic scenario for 2050 envisages a portfolio of energy resources in which renewable energy resources will dominate.
This scenario predicts a significant increase in biogas, wind and solar energy, which will reduce the use of fossil fuels. A gradual transition to renewable resources will contribute to a more video-friendly and safer energy supply, according to KEM.
The strategy is planned to be updated regularly so that it is adaptable to changing conditions, and a monitoring mechanism will be introduced – to know at any moment what scenario we are in and which policy roadmaps should be implemented, the ministry reports.