SWOT analysis of Vidzeme planning region Dr. Marika Rošā Prof. Dagnija Blumberga A report in the Project Wood Energy and Cleantech Ekodoma Founded in 1991 Independent engineer-consulting company located in Riga Our main fields of knowledge are energy, environment, and economics Our team consists of 15 active, welleducated and continuously improving their knowledge employees SURVEY OF MANAGEMENT OF ENERGY PROCEDURES IN VIDZEME PLANNING REGION Objective of the report to present an analytical survey of the management of planning procedures and the existing planning documents, to evaluate if these procedures and documents are sustainable in the field of: • energy and • forestry in the Vidzeme Planning Region to compare them with the Latvian national policy and the directions of development Long term and medium term documents VPR POLICY DOCUMENTS Territorial Plan of VPR 20072027 Developed in 2006 Two medium-term objectives: • To ensure availability of natural gas in the national and regional centres; • To ensure a qualitative supply of the electrical energy to customers and to improve the distribution, supply and efficiency of energy. Inconsistency The two medium-term objectives are contradictory The first objective is directed towards a complete gasification of the Vidzeme region that would mean the eradication of the local energy resources in the future At present, in the areas where the natural gas is not available they use mostly biomass The activities to reach the second objective envisage a wider use of the renewable energy resources Vidzeme study The economic profile of the VPR elaborated in 2010 presents the use of the local resources in the production of the thermal energy as one of the perspectives that • will also provide additional jobs to local people, • will reduce the dependency of the energy production from the imported resources and their prices on the world market VPR Development Programme 2007-2013 Natural resources are used efficiently applying environmentally friendly and modern technologies: • To support the research on the availability of the natural gas in larger populated areas and industrial territories; • To promote the use of gas and introduction and use of the alternative energy resources in the economic sector; • To promote the introduction of the environmentally friendly and energy saving technologies. Improved energy efficiency of public and dwelling houses and heat supply facilities, decreased heat losses ENERGY PLANNING DOCUMENTS OF VPR IN THE CONTEXT OF THE NATIONAL POLICY Latvian energy policy Main energy policy documents were developed in 2006 EU objectives 20-20-20 (40% RES in Latvia by 2020) presented in 2008 Sustainable development strategy of Latvia 2030 – RES can make share of 42% in 2020 and 60-65% in 2030 Independent studies on the issue Several independent studies indicate that with the existing policy the objectives will not be reached Latest figures prove this statement Kopējais energoresursu patēriņš (bez transporta) 45000 GWh/gadā 40000 35000 Hidro un vēja enerģija 30000 Ogles 25000 Naftas produkti 20000 Dabas gāze Biogāze 15000 Biodīzeļdegviela 10000 Koksne 5000 0 2010 CSP dati 2010 prognoze 2020 Fuel structure in centralised district heating in Latvia Fuel rate, % 100% 80% 60% 40% 20% 0% 2004 2005 2006 2007 Year Diesel Peat Gas from dumpsite waste Mazout Coal Natural gas Wood Sludge gas of sewage water Straw 2008 Fuel structure in centralised district heating in Vidzeme Regional energy consumption in district heating, MWh/year 400000 350000 300000 182593 169647 161218 128352 171853 250000 woody biomass 200000 natural gas 150000 100000 194248 192267 186867 197731 2007 2008 other fossil fuels 154667 50000 0 2005 2006 2009 National planning documents There are a number of laws and legal acts that govern energy sector in Latvia, including RES However political decisions differ from the policy On May 17, 2011, the Cabinet made a decision not to give rights to sell the electrical energy produced of RES in the framework of the obligatory purchase The Law of the renewable energy that was submitted to the Parliament on February 22, 2011, is not approved either New energy strategy 2030 under development Energy Strategy 2050 presented by Riga Technical University on 7 September 2011 Vidzeme policy vs national policy The main VPR planning documents, as well as the national energy strategy were elaborated in 2006 – 2007 The policy of the Vidzeme PR and the national policy supplement each other: • Both promote the increase of the fossil fuel rate in the total final energy consumption Municipal documents – bottom up approach Main direction - most of the municipalities in the Vidzeme elaborate their development programmes at the moment but the programmes that are already available show a tendency towards the energy efficiency and the renewable energy resources The priorities in the energy sector are directed towards a wider use of wood and other renewable energy resources, the connection to the gas pipeline is not planned FOREST PLANNING DOCUMENTS National and Vidzeme forestry policy One of the long-term objectives is a sustainable forestry and forest management with balanced economic, ecological and social aspects Forestry is one of the most important sectors for the development of the Latvian economy The main focus is on increase of products with a high added value, thus ensuring the competitiveness of Latvia AVAILABILITY OF ENERGY RESOURCES Research and discussions During the last three years more than 20 studies on the biomass have been elaborated and published in Latvia The experts have evaluated the potential of the biomass in Latvia from 8.39 up to 12.6 million m3 (30 TWh) Market analysis results Pulp Timber materials Energy Wood raw materials, m3 3 500 000 3 000 000 2 500 000 2 000 000 1 500 000 1 000 000 500 000 0 2005 2006 2007 2008 2009 Biomass (woodchip) resources, mil.m3/year Latvia Type Biomass and pulp Wood waste Stump Other resources By products from wood processing Total: Potential Existing 6,26 6,80 8,10 3,10 4,33 4,70 7,37 2,13 12,92 8,92 37,19 27,44 Source: Dagnis Dubrovskis, Latvian University of Agriculture, 7 September 2011 SWOT ANALYSIS Background information The SWOT analysis is done for the strategy of Vidzeme Planning Region to shift to renewable energy sources until 2035. This means that the Vidzeme region will diminish to minimum the use of fossil fuels in district heating systems and in other sources. Exception is the use of natural gas for cooking however use of biogas should be considered in the further analysis. STRENGTH A great potential of the renewable energy resources in VPR Lack of the natural gas pipelines in the largest part of the VPR territory Possibility to involve the local labour force Sustainable forest management Low costs of wood energy resources in comparison with the natural gas WEAKNESS #1 Lack of sustainable national policy Participate and act: Vidzeme region as one of the five regions in Latvia can ask from the responsible institutions (Ministry of Economics, Ministry of Agriculture, government, etc.) a clear progress of the energy and forestry policy for the next 30 years WEAKNESS #2 Lack of responsibility for the achievement of the objectives of the renewable energy resources and the energy efficiency Get involved: the increase of the share of renewable energy resource and the energy efficiency is not only a responsibility of the state and/or individuals It is also a possibility for local municipalities to promote their economic development and to attract new labour force Example for solution of weakness #2 Valmiera, Gaujas street 13 Source: Renesco Weakness #3 Shortage of professional knowledge how to prepare and use the biomass Learn more: one of the solutions is an elaboration of a training course in the region and inviting all wood processing, forestry and other enterprises, as well as the owners of private forests in the region Weakness #4 Lack of motivation to improve the local energy systems Motivate: to increase it, VPR can organise competitions of the best heat supply system and other motivating events Weakness #5 Shortage of experience of an efficient use of the renewable energy resources in heat supply systems and that does not facilitate the reconstruction of boiler houses Get in touch with others and learn Let’s not have this more! Let’s not have this more! Thank you! SIA “Ekodoma” Noliktavas iela 3-3, Rīga LV1010, Latvija tālr.: +371 67323212 fakss: +371 67323210 e-pasts: ekodoma@ekodoma.lv www.ekodoma.lv