Latvia considers energy policy shifts amid electricity price concerns

Latvia is facing potential shifts in its energy landscape due to proposed legislative changes and a push for increased electrification. Amendments to the law ‘On Environmental Impact Assessment’ have passed a second reading in the Saeima. These changes could allow authorities to reject new electricity production projects if a municipality has already approved at least 150 MW of wind power capacity, or 500 MW within a specific planning region.

Critics argue these thresholds could hinder the development of new production capacity, potentially leading to higher electricity prices for citizens and businesses in the long term. While solar and wind energy helped mitigate recent price shocks, the new regulations may create barriers to expanding these resources.

Concurrently, there are calls for Latvia to become an ‘electro-state’ to ensure energy security and price stability. Proponents suggest that transitioning from fossil fuels to domestic renewable sources—including solar, wind, and battery storage systems—is essential to reduce vulnerability to unpredictable global energy markets and supply chain disruptions.