Green energy community legislation passed in Latvia

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On Thursday, July 14, in the second and final reading, the Saeima supported amendments to the legislation aimed at promoting public involvement in the production of electricity from renewable energy sources (RES) and establishing the principles for energy communities.

“We have a deficit in electricity generation that needs to be addressed in all possible ways. Not only should we consider short-term solutions for the next heating season, but also for medium-term solutions for increasing electricity generation capacity,” Krišjānis Feldmans, Chairman of the National Economy, Agricultural, Environmental and Regional Policy Commission responsible for the passage of the draft legislation, had previously said, adding there was no special regulation for energy communities in Latvia, but they can play an important social and economic role in increasing electricity generation for self-consumption.

The amendments to the Energy Law provide that an association or foundation, a cooperative society, a partnership, a capital company or another civil society, whose activities are primarily aimed at producing energy from the RES and other renewable energy for own consumption, may become an energy community.

The status of an energy community can be obtained by registering in the Registry of energy communities. The State Construction Control Bureau will be responsible for establishing, administering, and maintaining the register.

The amendments to the Electricity Market Law also provide for the introduction of a net electricity settlement system. The net settlement system will be open to the participation of both households and customers of electricity produced from RES who are legal entities.

By September 30, 2022, the Cabinet will develop rules for the operation of the Net Settlement System.

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