Rīgas siltums to procure thermal energy via daily auctions

Rīgas siltums has announced a new strategy for procuring thermal energy, moving toward daily auctions to secure the lowest available market prices. This shift follows recommendations from the State Audit Office and aims to prioritize the most economically advantageous energy sources for the heating system.

In collaboration with the Ministry of Climate and Energy, a solution has been developed to decouple the price of heat produced from biomass from natural gas price fluctuations. The Saeima has passed the necessary legislative amendments, and the Public Utilities Commission has developed a methodology for setting maximum procurement prices, which is set to take effect on October 10.

Additionally, the company is working to integrate the heat energy market more closely with the electricity market, including the introduction of three-hour procurement windows to allow cogeneration plants to utilize heat more efficiently during favorable electricity market conditions. Previous daily market implementations have reportedly reduced procurement costs by more than 20 million euros annually.