Latvia has had a system of support for energy production in place for many years, based on compensating investment through a feed-in tariff (FiT). However, the support has been provided not only to producers of electricity from RES, but also to producers who use “efficient cogeneration” by burning natural gas. This means that the gas-fired CHPs in Riga have been receiving FiT payments both for the electricity produced as well as for the installed capacity.

The government today supported the Economics Ministry’s proposal to differentiate compulsory procurement component (feed-in tariff) in electricity rates for energy-intensive companies, based on the connection capacity and electricity consumption volumes.