Green energy producers contend with possible aid suspension in Latvia

The majority of the 134 green energy producers, whom the Ministry of Economics have threatened with aid suspension, have submitted the document specifications demanded by the Ministry, reported LSM's Latvian service on July 2. If this turns out to be enough, the state will continue buying electricity at a higher price from these producers. It is already known, however, that 13 producers will lose state support in July. 

One of the producers threatened with aid suspension is the “Green energy trio” CHP which provides heating and water to the whole Jaunjelgava municipality. The company has expressed concerns about ensuring its continuation.

“We'd like to ask the Ministry of Economics how are they planning t provide heating to our citizens,” asked the mayor of Jaunjelgava Guntis Libeks (National Alliance).

At the moment, it is unclear to us whether we'll be able to provide heating and warm water to our citizens. And what will happen to tariffs, most importantly. Because our long-term contract with this company lasts until 2030,” said Libeks.

The issue arose after the amendments adopted in the spring, which ruled that state aid is not applicable to that part of the produced energy which is needed for the operation of the station itself. 

In order to control compliance with this rule, companies were instructed to submit schemes that would illustrate the distribution of energy – how much of it is self-consumption, how much are the generating units, how is it connected, how is it connected with the “Distribution Network”. 

Of the 330 companies, 13 have not submitted any schemes at all and 134 more did not pass the examinations of the Ministry of Economics. This means the aid of at least 45% of green energy producers has been suspended. 

The ministry stated that 134 submitted schemes have not met the requirements.

“A part of them were outdated or weren't executive schemes at all, but only planned station schemes, some of the documents did not show the information that was demanded,” said Kārlis Piģēns, Director of the Ministry's Energy Policy Administration Department. 

The producers were asked to provide clarifications for the invalid schemes by the end of June, and, according to the ministry, the majority of the companies have done so. If the schemes are approved in the course of the evaluation, these producers will continue receiving full state aid.

It is clear, however, that those 13 producers who failed to submit the scheme at all, will not receive state aid at least in July.

Among them are nine small hydroelectric plants and many other companies, one of which has not submitted the scheme because of impending liquidation, and another – “Liepājas rokāde” – is not worried about the delay, as it will only start working in autumn. 

The precise number of the companies that are to lose state aid for at least a month will be announced in the coming weeks, when the Ministry has reviewed all the submitted.

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