• General State of the Economy
• Energy Resources
• Energy Balance
• Energy Infrastructure
• Education and Innovation
• Ecology and Environment Protection
• References

Latvia, officially the Republic of Latvia, is a Baltic state and located in Eastern Europe. Its capital city is Riga. Neighbouring countries are Estonia (to the north), Russia (to the east), Belarus (to the south-east), and Lithuania (to the south). The country has access to the Baltic Sea and the length of the coastline is 498 km [3].

Source: [1,2,3,4,5]

According to 2023 statistics, the country, which is 126^th in the world in terms of area, is home to around 1.9 million people. In terms of population density the country is 196^th in the world [1,2,3]. The administrative map of Latvia is divided into 110 municipalities and 9 cities. The political form of government is parliamentary republic. The official language is Latvian [3].

Riga. View of the old town

The basis of the country's economy is its service sector, transit services, timber and wood processing, the agrarian sector, and its food industry [3]. Latvia is a developed transport and trade hub with three large ports in Riga, Ventspils and Liepaja [3].
By almost all indices in the diagram, Latvia is ranked in the top50% among all countries considered.

After a sharp decrease between 2007 and 2009, since 2010 the country experienced sustained GDP growth at purchasing power parity, both in general and per capita [4,5]. GDP at purchasing power parity increased from $52.36 billion in 2016 to $79.98 billion in 2023 (104^th in the world) [3]. GDP at purchasing power parity per capita is somewhat higher (56^th in 2023). The dynamics of this indicator is also positive: from 26 721 in 2016, to $42 501 in 2023 [3]. The inflation rate is stable and amounts to 8.9% [3].
The Global Competitiveness Report, presented by the World Economic Forum measures the effectiveness of the use of the country’s own resources for sustainable development. In addition to a number of economic indicators this index also takes into account such variables as education, health, level of innovation, etc.
High-technology exports in 2023 was 16.4% of manufactured exports. According to the Index of Economic Freedom 2024, which takes into account business freedom, freedom from government intervention, protection of property, and freedom from corruption, Latvia was 19^th out of 184 countries. Latvia's public debt as a percentage of GDP was 73.9% in 2022 [3].

Latvia does not have significant reserves of fossil resources (Table 1). Nevertheless, the country has a variety of renewable energy resources, primarily hydro and bio resources. In some areas there are natural opportunities for the development of wind power.

Table 1. Renewable energy resources of Latvia

 *for most of the territory of the country
**economically exploitable capability

The level of global horizontal irradiation for the majority of the country is low – 2.7-2.8 kWh/m²/day, but in the west of the country it can reach up to 3.0 kWh/m²/day [6]. The distribution of wind resources is as follows: for the majority of the country the wind speed is 5.0-6.5 m/s; higher wind speeds can be observed in the west of the country along the coast – 7.0-7.7 m/s (at a height of 50 m) [7].
According to [8] the economically exploitable hydropower capability in Latvia is 4 TWh/yr. However, other sources rate it somewhat lower – 3.9 TWh/yr. Potential generation SHP and large hydropower in Latvia as of 2020 are 3200 GWh [9]. Potential capacity of small hydropower is estimated at more than 96 MW [10]. In 2021, 54.9% of Latvia was forested and 31.7% was covered by agricultural land [11,12]. The potential of these resources is being actively used in the production of energy products from biomass.

LATVIA, DOBELE
Latitude: 56.62, Longitude: 23.32

Average daily sky coverage over 10 years of observations, %

CLR - clear, SCT - scattered from 1/8 TO 4/8, BKN - broken from 5/8 TO 7/8, OVC - overcast, OBS - obscured, POB - partial obscuration

Source: based on NOAA U.S. Department of Commerce
Detailed information: Interactive map of solar resources

LATVIA, DOBELE
Latitude: 56.62, Longitude: 23.32
Average speed: 3.32 m/s, Operational share: 63%

Average daily wind speed for 10 years of observations, m/s, 10 m above the ground

Source: based on NOAA U.S. Department of Commerce
Detailed information: Interactive map of wind resources

According to the level of generation of municipal waste – 478 kg per person, Latvia is ahead of its neighbour Estonia (383 kg per capita) but behind Lithuania (483 kg per capita) [13]. This resource, which is found in many highly developed countries, is being successfully used for energy production or secondary consumption. However, this technology has not yet been actively applied in Latvia.

Latvia’s position in the comparative diagram of energy index is shown in Figure 4. As previously mentioned, Latvia does not have significant reserves of fossil resources, so the first five indices are extremely low or non-existent.

The scarcity of fossil resources in Latvia is critical and there are not enough of them to produce the required quantity of electricity, therefore Latvia is a major importer of fossil fuels.
However, other indices look more promising. In terms of the share of electricity production from renewable energy sources (excluding hydropower), Latvia is 86^th out of 170 countries selected for consideration.
In terms of electricity consumption per capita, the country is 80^th in the world, however, for the indicator of combination of electricity production-consumption, Latvia is 189^th in the ranked list of 216 countries.

A territorial map showing the distribution of the largest infrastructure projects of the fossil fuel sector in Latvia is shown in Figure 5. According to U.S. Energy Information Administration, primary energy production in Latvia accounts for 28.45% of total energy consumption in 2022 (Fig. 5). The Ventspils Nafta terminal is the leading non-freezing terminal of the free port of Ventspils, connected by a pipeline and a railway to Russia. The total capacity of the terminal for trans-shipment oil products to tankers by rail is 7 million tons per year. The total capacity of the tank farm is 1 195 000 m³, the maximum capacity of the tankers is 100 000 tons. Four tankers can be processed simultaneously [16]. The trans-shipment capacity of fuel oil and diesel of the Ventspils terminal, owned by Ventbunkers, reaches 7 million tons, and the total capacity of the tank farm is 355 m³ [17]. Ventspils also processes a variety of other energy cargo. At the terminal owned by JSC "Baltic Coal Terminal" it is possible to ship up to 6 million tons of coal annually. The company's project provides for the expansion of the terminal to 10.5 million tons per year [18]. Peat, timber and biomass are transported to Ventpils by Ventplac Ltd [19]. Since 2006, Russia has stopped supplying crude oil to Ventspils via the crude oil pipeline, and there is information about the suspension of deliveries via the petroleum products pipeline, which could seriously affect the cargo turnover of the Ventspils port.

Figure 5. Basic infrastructural facilities of the fossil fuel sector in Latvia (click on the map to view a PDF version)

The oil terminal in Liepaja processes an average of 26,000 metric tons of cargo per month and has a total capacity of 85,000 m³.
The terminal transports crude oil, petroleum products, biomass and petrochemical products [20]. In 2022 the volume of transshipment of energy cargo in the Freeport of Riga amounted to more than 5 million tons of coal, more than 1.4 million tons of oil products [21]. The Baltic oil terminal in the port of Riga is capable of handling up to 10 million tons of dark and light oil products per year, for ships with a deadweight of 100 thousand tons [22]. The total length of pipelines for the transportation of oil and oil products is 412 km and 421 km respectively (Fig. 5). As mentioned above, oil has not been transported through the pipeline from Russia since 2006. The Inčukalns natural gas storage facility is the only one of its type in the Baltic countries. It was built in 1968 and has a storage capacity of 4.5 Bcm of natural gas [23].
The gas storage is located at a depth of about 700 meters in an aquifer of loose sandstone under a layer of hard rocks. Gas injection is carried out in summer; gas extraction in winter. Import of gas - mainly from Russia - is carried out through a pipeline with a length of 1 097 km (Fig. 5). Due to the completion of the construction of the liquefied gas terminal in Klaipeda, and in order to maintain efficient operation, it is planned to modernize the gas storage facility. The level of investment required is estimated at EUR 376.5 million [24].
A map of the territorial distribution of Latvia's largest infrastructure facilities for electricity generation is presented in Figure 6.

Figure 6. Electricity production in Latvia (click on the map to view a PDF version)

The share of fossil resources in electricity production in Latvia in 2023 was 21.4% (Fig.6).
The country has several stations for the production of electricity from hydrocarbon materials, including the Riga CHPP-1 gas power plant with an installed capacity of 158 MW. In 2023 this station produced 111 GWh of electricity and 650 GWh of thermal energy [25]. In 2005, the station was reconstructed.

Riga. View of the Thermal Power Plant

The combined-cycle thermal power station in Riga, CHPP-2, has an installed capacity of 881 MW of electricity and 1 124 MW of thermal energy. The largest energy producer in Latvia is Latvenergo, which owns both the previously mentioned stations, with a total installed capacity of 2 606 MW of electricity and 1 793 MW of thermal energy. The company's revenues in 2023 totalled EUR 2034 million [25].
Latvia receives a significant share of its electricity from neighbouring countries, whilst also being an exporter. In 2022, 4.794 GWh of electricity were produced in Latvia, which is 14,5% less than a year ago, while Latvia's electricity consumption decreased by 3,7%, reaching 7.106 GWh per year [26]. As previously mentioned, hydropower in Latvia accounts for almost 64% of the electricity generated, and according to data for 2023, Latvia has a total installed hydroelectric capacity of 1.57 GW (Fig. 6). The leading generator is Pļaviņas Hydro Power Plant, built in 1965, with an installed capacity of 908 MW [27]. In addition to Pļaviņas, shown on the map, there are less powerful hydroelectric stations – Riga HPP (402 MW) and Kegums HPP (248 MW).

Riga's Hydroelectric Power Plant on Daugava River, 402MW and Riga Reservoir, Latvia

In 2023, the total electricity production by hydroelectric power plants on the River Daugava was 3.7 TWh (due to the increased flow) [25]. It is planned to carry out a large-scale reconstruction of high-voltage networks in Latvia to increase their throughput. One such project involves the reconstruction of the obsolete 330 kV line between Tartu (Estonia) and Valmiera (Latvia). Another project, called the Kurzeme Ring, plans to construct a 330 kV transmission line with a total length of about 330 km and a capacity of 800 MW. This project is part of a larger NordBalt project between Sweden and Lithuania to improve the reliability of electricity supply in the region [28].

Figure 7 shows the main infrastructure of Latvia for the production of renewable energy.

 Figure 7. Renewable energy in Latvia (click on the map to view a PDF version)

In the areas of high wind activity, there are a number of large wind farms with a capacity of more than 1 MW each. The largest of these is Pope/Targale, with an installed capacity of 27 MW [29]. The total installed capacity of wind power in the country is 140 MW. Because of low solar activity, the use of solar energy in Latvia has not received intensive development. Nevertheless, in 2023 the total capacity of solar generators connected to the grid in Latvia was 350 MW.
The production of various kinds of energy products from biomass is the most dynamically developing in Latvia. According to data for 2022, about 0.80 TWh was generated from biomass (Fig. 7), i.e. more than 4 times that coming from wind energy. The country operates biomass processing, refining, biogas, biodiesel, bioethanol and pellet production. Fortum manages the largest biomass processing plant, the Jelgava Biomass power plant, with an installed capacity of more than 23 MW [31].
Launched in 2010, the Rezekne pellet factory owned by New Fuels RSEZ is capable of producing up to 240 000 tons annually [32].

Chip pellet mill. Latgran

The enterprise produces and exports wood pellets with a diameter of 6 and 8 mm. More than EUR 40 million has been invested in this facility. Since 2015, the company has received electricity from the biogas cogeneration station, the largest in Latvia, with an electric capacity of 3.1 MW and a thermal power capacity of 10.7 MW [33]. Ventspils Bio-Venta SIA Biodiesel Plant, is capable of producing 100 000 tons of biodiesel annually [34]. The enterprise was launched in 2008 and has been the largest producer of this product in the Baltic States ever since. The total investment amounts to EUR 77.72 million.

The largest biodiesel production complex in the Baltic states Bio-Venta

Jaunpagasts Plus annually produces about 7 500 tons of bioethanol at the country's largest enterprise – Iecava [34]. The main Latvian plants in the field of bioenergy are: biogas production – Dobele, Bio Ziedi Biogas plant with an installed capacity of 2.5 MW [35]; and  Getlini Landfill gas-to-energy plant with an installed capacity of 6.3 MW [36].

The set of indices reflecting the position of Latvia among other countries in the field of education and innovation can be seen in Figure 7. As follows from the presented diagrams, Latvia's indicators for education and innovation are quite contradictory. According to the Global Innovation Index 2021, Latvia is ranked 38^th out of 132 countries (see diagram for links).
 

According to the number of patents granted to Latvian nationals, both domestically and abroad, the country ranks 58^th in the world. Similarly, by the number of valid patents, the country is 53^rd in the world, largely indicating the country's favourable conditions for innovation.
In terms of government expenditure on education as a percentage of the country's GDP, the country also demonstrates a result above the world average – 51^st out of 177 countries selected for consideration.
Similarly, in terms of public expenditure on research and development as a percentage of GDP, Latvia is 54^th, above the world average. Latvia is well positioned when considering the number of publications of specialists in scientific and technological journal and patent activities. Latvia places 77^th out of 240 participating countries in the Scimago ranking, and in Scientific and Journal Activities it is ranked 69^th out of 197 countries. The University of Latvia is included in the rating of the world-leading universities, the QS University Rating, and conducts training in various fields of energy, including Geology and Environmental Science. The Technical University of Latvia conducts research in the field of renewable energy.

A diagram of environmental indices is shown in Figure 9. From the diagram it can be seen that the ecological situation in the country looks quite secure. First of all, it should be noted that the level of CO₂ emissions in Latvia corresponds to the world average, but per capita it is slightly higher.
At the same time, the situation is aggravated by the fact that Latvia is regarded as one of the 61 countries responsible for more than 90% of global CO₂ emissions related to energy in the Climate Change Performance Index (CCPI) 2022.
 

In terms of forest area as a percentage of the country, Latvia is 41^st in the world, and demonstrates a positive trend. The situation is brightened by a relatively high valuation of Latvia in the Environmental Performance Index rankings (EPI), which focuses primarily on assessing the environmental performance of national governments. Here, the country is 36^th, although behind Lithuania and Estonia, but shows a positive trend.
The overall picture is moderated by the Ecological Footprint Atlas rating, according to which Latvia is among the number of ecological creditors.

[1] List of sovereign states and dependencies by area / Wikipedia / https://en.wikipedia.org/wiki/List_of_countries_and_dependencies_by_area
[2] List of countries and dependencies by population density / Wikipedia / https://en.wikipedia.org/wiki/List_of_countries_and_dependencies_by_population_density
[3] Latvia / The world factbook / Library / Central Intelligence Agency / https://www.cia.gov/
[4] GDP, PPP (constant 2011 international $) / World Bank, International Comparison Program database. License: CC BY-4.0 / Data / The World Bank / http://www.worldbank.org/
[5] GDP per capita, PPP (current international $)/ World Bank, International Comparison Program database. License: CC BY-4.0 / Data / The World Bank / http://www.worldbank.org/
[6] Solar resource data obtained from the Global Solar Atlas, owned by the World Bank Group and provided by Solargis / Global Solar Athlas / http://globalsolaratlas.info/
[7] Wind Map / Global Wind Atlas 2.0, a free, web-based application developed, owned and operated by the Technical University of Denmark (DTU) in partnership with the World Bank Group, utilizing data provided by Vortex, with funding provided by the Energy Sector Management Assistance Program (ESMAP). For additional information: https://globalwindatlas.info
[8] 2010 Survey of Energy Resources (PDF) / World Energy Council / www.worldenergy.org/
[9] World Small Hydropower Development Report 2022 / United Nations Industrial Development Organization / www.unido.org
[10] Latvia / Small hydropower World / http://www.smallhydroworld.org/
[11] Agricultural land (% of land area) / Food and Agriculture Organization, electronic files and web site. License: CC BY-4.0 / Data / The World Bank / http://www.worldbank.org
[12] Forest area (% of land area) /Food and Agriculture Organization, electronic files and web site. License: CC BY-4.0 / Data / The World Bank / http://www.worldbank.org/
[13] Municipal waste statistics Updated / Full list / Statistics Explained / Eurostat / https://ec.europa.eu/
[14] International Energy Statistic / Geography / U.S. Energy Information Administration  /http://www.eia.gov/beta/international/
[15] Energy balance, TJ (NACE Rev. 2) / Official statistics of Latvia / https://stat.gov.lv/en
[16] Ventipils Nafta / http://www1.vnt.lv/
[17] Ventbunkers / http://www.ventbunkers.lv/
[18] JSC "BALTIC COAL TERMINAL" / http://www.balticcoal.lv/
[19] Ventplac / http://www.ventplac.lv/
[20] Infrastructure / DG Terminals / http://dgterminals.lv/
[21] Freeport of Riga / http://rop.lv/
[22] Baltic oil Terminal / http://www.balticoilterminal.lv/
[23] Incukalnapazemesgazeskratuve / NeoGeo / http://neogeo.lv/
[24] Delfi / http://www.delfi.lv/
[25] Riga CHPP-1 / Latvenergo / http://www.latvenergo.lv/
[26] Latvian electricity market overview - 2024 / AST / http://www.ast.lv/
[27] Latvenergo / Daugava hydropower plants / Plavinas HPP’s" / http://www.latvenergo.lv/
[28] Kurzemesloks / Ast Visas Tiesības Aizsargātas / http://www.ast.lv/
[29] Papildinata – Atklaj jaudigako veja parku Latvija; planotas investicijas 200 milj. eiro / Daily Business (Dienas Bizness) / http://vecs.db.lv/
[30] Saules enerģijas potenciāla pārskats ES valstīs / SEA / http://www.saulesbiedriba.lv/
[31] Fortum inaugurates the first large-scale biomass combined heat and power plant in Latvia / Fortum / http://www.fortum.com/
[32] About NewFuels / NewFuels RSEZ / http://www.newfuels.eu/
[33] History / Bio-Venta / http://www.vktranzits.lv/
[34] Kur aiztek mūsu bioetanols?Aisma Orupe (PDF) / JSC Jaunpagasts Plus / http://jpplus.lv/
[35] Dobeles novadā atklās SIA Bio ziedi vērienigo biogāzes ražotni / April 2011/ EU Home (ES Māja) / http://www.esmaja.lv/
[36] Gāzes ieguve un enerģijas ražošana / Eko Getlini / http://source.zl.lv/

The sources of charts and curves are specified under the images.

For more information about the energy industry in Latvia see here