Electricity Market Law

Country / jurisdiction: Latvia · Year: 2005 · Status: In force · Level: National · Type: Voluntary

The purpose of the Electricity Market Law is:

1) to establish prerequisites for the operation of an efficiently functioning electricity market;

2) to ensure that, taking into account the requirements of regulatory enactments, all electricity users are provided with electricity safely and in good quality, in the most efficient possible way, for justified prices;

3) to ensure that all users have the right to choose an electricity trader freely;

4) to promote the production of electricity by using renewable energy resources; and

5) to promote energy independence ensuring different suppliers of energy resources necessary for the production of electricity.

Some of the renewable electricity related provisions of the law are:

The Cabinet shall determine the targeted share of renewable energy from each technology. This will begin on 1 January 2006, so that by 31 December 2010 the total share of renewables in relation to the total electricity consumption is higher than 49.3% (this was achieved).

A public electricity trader will calculate the required electricity to be procured and produced to meet the target. This will be made public.

The Cabinet will develop the procedures for the determination of the electricity price depending on the type of renewable energy resources, the procedures for the determination, implementation and supervision of the mandatory procurement and the procedures for covering the expenses of the mandatory procurement amount.

Hydroelectric power plants above 5 MW shall not be included in the mandatory procurement of renewable electricity.

The expenses of the mandatory procurement of renewable electricity shall be extended to the electricity consumers.

The law also includes provision for biogas and biomass electricity producers above 1 MW.

Official source: http://em.gov.lv/images/modules/items/Electricity_Market_Law.doc%20