Market of Latvia’s energy resources and innovation shifts in the industry

Economic Annals-ХХI: Volume 146, Issue 11-12, Pages: 49-52

Citation information:
Jefremov, V. (2014). Market of Latvia’s energy resources and innovation shifts in the industry. Economic Annals-XXI, 11-12, 49-52. https://ea21journal.world/index.php/ea-v146-12/

Vladimir Jefremov
D.Sc. (Economics),
Head of Baltic International Academy’s Jelgava Branch
4b Skolas, Ozolnieki, Ozolnieku District, LV 3018, Latvia
vladimirs.jefremovs@inbox.lv

Market of latvia’s energy resources and innovation shifts in the industry

Abstract. Introduction: Energetics plays a vitally important role in modern society. An increase of the interest in sustainable energy resources in many countries around the world is also connected with a constant decrease of fossil fuel energy resources, ecology degradation, which is connected with gas emissions, leading, in its turn, to greenhouse effect.

Purpose: The author analyses the market of energy resources and energy production on the basis of sustainable energy resources in Latvia. In order to develop an effective electrical energy market, to raise energy safety and increase the investment in electric energy system’s infrastructure, the opening of the electric energy market will be finished by 1st January, 2015. In this respect, the area of heating supply and the perspectives of different green energy types with a detailed presentation of biomass energy advantages are viewed.

Methodology & Results: In the article, a case analysis of the main electricity producer of Latvia, which is JSC Latvenergo, has been investigated. The dynamics of electricity production at hydroelectric plants of the company is shown. The precise analysis is given to the different kinds of bio-energy usage, which strengths have been specified. Thus, sustainable energy resource application has a number of undeniable advantages if compared with traditional resources, namely: sustainable energy resource application allows decreasing the environment pollution level and the expenses for energy production waste recycling; sustainable energy sources are inexhaustible; the terms of energy production’s object building on the basis of sustainable energy sources payback are significantly shorter than those of electricity plants on organic fuel; the costs of electric energy supply for decentralized consumers and regions are lower; sustainable energy resources are closer to the consumer what decreases transportation costs.

Conclusion: Thus, the energy systems on the basis of sustainable energy sources contribute country’s sustainable economic development and environmental protection. That obviously highlights the perspectives of Latvia’s energy system development.

Keywords: Latvia; Electric Energy; Thermal Electricity Plant; Energy Resources Market; Biomass Energy; «Green» Energy; Latvenergo

JEL Classification: L94; Q20; Q28

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Received 16.09.2014