Lack of long-term predictability in Latvia

Financers, be it private investors or banks, are being held back from investing in renewable energies as the policy framework has been unpredictable since 2011 and offers no long-term vision. The existing feed-in tariff is under revision and has been closed for new installations since 2011, without any certainty about the future project support. Amendments to the Regulation on Electricity Production and Price Determination Upon Production of Electricity in Cogeneration (Cabinet Regulation No. 221) and the Regulation on the Production of Electricity Using Renewable Energy Resources and the Procedures for Price Determination (Cabinet Regulation No. 262) introduced stricter monitoring of subsidised electricity producers, more stringent controls and a limited timeframe for the implementation of renewable energy projects (within 10 years at the latest). The government speaks of the abolition of the feed-in tariff, which further exacerbates the general situation. 

Also, the National Energy And Climate Plan of Latvia 2021 - 2030 provides that the existing feed-in tariff will be reduced from 2021 and is expected to be abandoned in the following years.

Due to the current uncertainty, the project developers lack a long-term and low-interest investment finance schemes.

Thus, Latvia has switched from generous feed-in-tariff support for renewable energies to no support at all. As a result, there is currently an ongoing process of uncertainty that is paralyzing the entire development of the industry and negatively affecting investor interest.