PESTEL and SWOT PP4 LATVIA
European Union
European Regional Development Fund
Factors
Political
Economic
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Latvia is energy importing state – about 70% of primary energy sources are imported, mostly from
previous soviet countries; it rises political and economical dependence
Electricity import is 25 – 40% of national consumption -it depends on local hydro power
capacity and climate conditions , about 35% electricity is generated by natural gas stations
 Use of offshore wind (OSW) could strengthen economical and political independence of Latvia
 Latvia have 500 km sea coast and corresponding to international laws costal zone with mean
wind speed over 7 m/s; this is considerable energy recourse, not yet politically and economically
estimated
 Te goal defined as national target for 2020 is 40 % energy from renewables
 For electricity the target is 49,6 %.
 Legal system is not stabile and not consequent and sustainable for OSW development, up to
now in 21 century it had changed every time, when governments changed
 There are no innovation funds for OSW development
 There are no political will to develop OSW mostly for lack of appropriate information
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Wind parameters [mean speed over 7 m/s, no heavy storms] could give positive commercial
effect for use of OSW with economically calculated support.
Electrical grid ( operated by state owned monopoly company LATVENERGO ) developed for
>600 MW OSW capacity
There are no defined legal support system for electricity generated by wind turbines (no long
term feed in tariffs, no stabile quotas for efficient generation, no green certificates)
There are harbours (Liepaja, Pavilosta, Ventspils, Roja, Riga, Salacgriva) suitable for OSW
service activities
Fossil fuels lobby (natural gas ) put on brakes all attempts for developing wind industry
Latvia yet have no experience on implementation any OSW projects.
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Social
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Technological
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Local authorities in costal zone welcome investors, coming with OSW projects,
considering rise of regional economic activities ( developing production industries,
harbour service, technological service, transport, grid development, construction works
etc.) as well as creating working places.
The controversy are some aggressive environmentalist groups arguing against wind
farms with emotional and unreasonable environmental, heath, visual impact arguments.
Universities have basis for preparing technical and economical personal for OSW.
There are no national Wind atlas, exists only calculations on meteorological basis as well
some measurements in coastal zone (not in sea)and wise scale wind maps from satellite
measurements. Anyway the wind speed at height 100 m is over 7 … 8,5 m/s; it give a
reliable basis for good energy harvest
Sea depth up to 20..25 km from coast is less then 25 m; up to 50 km up to 40 m . It suits
the requirements for contemporary building techniques. Geology is suitable – mostly soft
sand and gravel.
Sea ground should be scanned to detect possible mines left by previous wars
Sea parameters: waves, streams, temperatures, fog, snow, visibility are well known by
the Sea administration . Some problems could arise considering climate - icing, standing
ice and moving ice by winds or streams.
There are harbours (see above) suitable for developing basis for construction and
montage techniques, sea transport and service
Cabinet of Ministers had marked too regions over 500 sq.km for OSW development. The
specific research works are in stage of preparing.
There are no legal of physical barriers for laying electrical cables in the sea and for
connecting to state high voltage grid (330kV) at distance 10..15 km from coast
There are no experience for development of OSW turbines or farms
Environmental
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As the construction and operation of OSW can impact environment, maritime
ecosystems, sea and air transport, building , communications, defence systems,
archaeology, geology, fishery and tourism and there are held long term (since 2009 at
Ministry of Environmental Protection and Regional Development with other 6 interested
ministries ) negotiations and consultations for consolidating regulations for marking
terrains, recommended for developing OSW.
Legal
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Latvia has no experience in developing OSW as well the legal system was not prepared
for such task. There are no direct laws and in several laws in all fields (see in
environmental factor) and international agreements should be made considerable
changes and created set of new regulations. It is just the sector where 4POWER partner
PP4 (Association of Local and Regional Governments together with Latvian Wind Energy
Association) is taking part.
Strengths
In your region
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Strong EU political background –EU Directive
2009/38/EU
Good physical conditions - Wind parameters,
sea geology and depth
Good developed eclectic grid
Suitable harbours for construction and
service basis
Outside your retion
Opportunities
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Strengthen economical un political
independence of country
Strengthen DGP structure
Attracting new investors
Developing harbour sector
Create new jobs
Shortening CO2 emissions
Education technical and marine staff
Weaknesses
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Uncertain political situation
No sustainable legal framework
No experience of OSW projects
No professional staff
No reliable financial sources, due unstable energy
market price
Low level of society information
No wide public support
Threaths
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Unstable political situation,
Lack of sustainable energy policy
Strong lobby of fossil fuel business
Lack of positive for OSW legal system
Uncertain electricity and GHG market
Long terms due ….. period of execution