Latvia’s energy system is defined by a useful contrast. The country produces a large share of its electricity from hydropower, biomass and a fast-growing solar sector, yet it still depends on imported oil, natural gas and electricity to meet wider energy demand. Latvia’s rivers and forests give it a stronger renewable base than many European countries, but cold winters, older buildings and transport fuel consumption keep imported energy important.
The most significant recent change was not the opening of a new power plant. It was Latvia’s physical separation from the Russian-controlled electricity system and its connection to the continental European grid in February 2025. That step changed the country’s energy security position and placed grid modernization, regional trade and domestic renewable development at the center of the Latvia energy debate.
Latvia’s Energy System Begins With Water, Wood and Winter
Latvia does not have large commercially useful reserves of oil, natural gas or coal. Its main domestic energy resources come instead from water, forests, wind and sunlight. This creates an energy system in which renewable electricity and renewable heating are relatively strong, while transport and some industrial activities remain dependent on imported fuels.
In 2024, Latvia generated approximately 73% of its electricity from renewable sources. Hydropower remained the largest source, followed by renewable generation from combined heat and power plants, solar energy and wind. Total renewable electricity production reached about 4,643 gigawatt-hours during the year.[1]
This renewable share can change significantly from one year to another. Hydropower output depends on water levels and the flow of the Daugava River. Biomass demand is connected to heating conditions and fuel prices. Solar generation follows long summer days but falls sharply during the dark Baltic winter.
Latvia therefore has a renewable-rich power system, but not a fully self-sufficient one. In 2024, domestic plants supplied about 84.6% of national electricity consumption. The remaining 1,074 gigawatt-hours came from neighboring electricity markets.[2] Imports are not automatically a sign of weakness because regional trade allows Latvia to buy power when it is cheaper or when domestic hydro output is low. However, the gap shows why Latvia continues to pursue additional wind, solar, storage and grid capacity.
The Daugava River Still Sets the Rhythm of Latvian Electricity
Hydropower is the foundation of electricity generation in Latvia. The country’s three major hydroelectric stations — Pļaviņas, Ķegums and Riga — are located along the Daugava River and have a combined capacity of roughly 1.6 gigawatts.[3]
These plants are important for more than renewable electricity. Hydropower can respond quickly when electricity demand rises or when production from another source falls. This flexibility helps Latvia manage changes in solar and wind output and provides valuable balancing capacity within the wider Baltic electricity market.
The Pļaviņas plant is the largest of the three and one of the most important power facilities in the Baltic region. Ķegums has a longer history, while the Riga hydroelectric plant sits closer to the country’s main population and economic center. Together, the Daugava stations form a chain of reservoirs and generating units that has shaped Latvia’s power system for decades.
Hydropower produced about 3,210 gigawatt-hours in 2024. That was 15.4% less than in 2023 because water conditions were less favorable.[1] The decline illustrates the main limit of Latvia’s hydro-based system: installed capacity may remain stable, but annual output can move sharply with rainfall, snowmelt and river flow.
Climate change adds another layer of uncertainty. Warmer winters, irregular snow cover, floods and dry periods may alter the timing and volume of water entering the Daugava. Modernizing turbines can improve efficiency, but it cannot remove the natural variation of the river. Latvia therefore needs other electricity sources that can reduce the effect of weak hydro years.
Natural Gas Remains the Flexible Fuel Behind Riga
Natural gas has lost some of its former position in Latvia, but it remains an important fuel for electricity, district heating and industry. Its main power-sector role comes from the large combined heat and power plants in Riga.
Riga CHP-1 and Riga CHP-2 can produce electricity and useful heat at the same time. Their flexible generating capacity supports the grid during periods of high demand, weak hydropower production or limited renewable output. The plants are especially important during cold weather, when Riga needs large volumes of heat.
Latvia does not have significant domestic natural gas production. Gas must therefore enter through the regional pipeline and liquefied natural gas network. Since 2023, Latvia has prohibited imports of Russian natural gas, ending a dependence that had shaped the country’s energy sector for decades.[7] Alternative supplies can reach the Baltic region through LNG terminals and connections with Lithuania, Estonia, Poland and Finland.
The Inčukalns Underground Gas Storage facility gives Latvia a strategic advantage. Gas can be injected during warmer months and withdrawn during the winter heating season. The site has historically held as much as 2.32 billion cubic metres of active gas, with potential for further expansion.[4]
Inčukalns is not only a Latvian asset. It supports the wider Baltic and Finnish gas market, making Latvia an important regional storage center even though it is not a major gas producer. This gives natural gas a dual role: it is an imported fossil fuel, but the infrastructure used to store and move it strengthens regional energy security.
The long-term question is how often Latvia will need gas-fired generation. More wind, solar, storage and electricity imports could reduce gas use. At the same time, flexible thermal plants may remain valuable during winter demand peaks and periods of low renewable production.
Oil Keeps Transport Moving While Coal Fades to the Margins
Oil is important in Latvia, but not because it produces much electricity. Petroleum products are used mainly in road transport, aviation, shipping, agriculture and machinery. Latvia has no major domestic crude oil industry, so almost all conventional transport fuel must be imported.
Transport was Latvia’s largest final energy-consuming sector in 2024, accounting for 28.4% of final energy demand.[1] Diesel remains especially important because of road freight, private vehicles, buses, farming equipment and Latvia’s role as a transport and logistics corridor.
Riga, Ventspils and Liepāja connect Latvia to Baltic Sea trade, while roads and railways link the country with Estonia, Lithuania and the rest of Europe. These economic networks make fuel supply an issue of both national mobility and commercial competitiveness.
Electric cars, public transport electrification and alternative fuels may reduce oil demand, but the change is likely to be gradual. Latvia has a dispersed rural population outside its main cities, and many journeys are difficult to replace with rail or urban public transport. Charging infrastructure must also expand beyond Riga and other large population centers.
Coal has a far smaller role. Latvia has no large coal-fired power fleet and no major domestic coal industry. Small amounts of coal, coke, peat and other solid fuels may still be used in industrial or heating applications, but coal is not a central part of Latvian electricity generation.
Consumption of solid fuels continued to decline in 2024.[1] As a result, Latvia does not face the same coal phaseout problem as countries with large mining regions and coal power stations. Its fossil fuel challenge is mainly connected to imported oil and natural gas rather than coal.
Latvia Has No Nuclear Power Program
Latvia does not operate a nuclear power plant and is not planning to build one under its current national policy. The country’s latest reporting under the Convention on Nuclear Safety states that Latvia has no existing nuclear power station and no plan for a new one.[5]
This does not mean nuclear energy is irrelevant to Latvia. Electricity traded through the European market may include nuclear generation from countries such as Sweden or Finland. Nuclear safety is also a regional concern because an accident elsewhere in Europe could have cross-border consequences.
Latvia previously operated a research reactor at Salaspils, but the reactor was shut down and entered decommissioning. The country therefore maintains institutions for radiation monitoring, radioactive waste management and nuclear security even without a commercial nuclear industry.
The small size of Latvia’s electricity market makes a conventional large reactor difficult to justify. A major nuclear station would require very high investment, long construction periods and strong regional arrangements for financing and electricity sales. Small modular reactors could enter future Baltic discussions, but Latvia’s current strategy is focused on renewable power, regional connections, storage and flexible generation rather than domestic nuclear energy.
Biomass Links District Heating to Latvia’s Forest Economy
Bioenergy is one of the most distinctive parts of the Latvia energy mix. The country’s extensive forests support a major timber and wood-processing economy, creating fuelwood, wood chips, bark and other residues that can be used for heat and electricity.
Biomass has helped municipalities and district heating companies reduce their dependence on imported natural gas. Wood-based boilers and combined heat and power plants are used in Riga and in smaller cities, where central heating networks supply homes, schools, hospitals and public buildings.
This is especially important because heating is a major energy need in Latvia. Winters are cold, and much of the housing stock was built before modern efficiency standards. A local biomass heating plant can replace an imported fuel while supporting forestry, transport and equipment jobs within Latvia.
Biomass is renewable when forests are managed responsibly and regrowth replaces harvested material. However, it is not free from environmental pressure. Burning wood releases carbon and air pollutants, while intensive harvesting can affect biodiversity, soil and the ability of forests to store carbon.
Latvia must therefore balance three interests: the economic importance of forestry, the energy-security value of local fuel and the climate role of healthy forests. Using residues and waste from existing wood industries is generally easier to defend than increasing forest cutting mainly for energy production.
Biomass will remain important, but the most efficient long-term approach is likely to combine it with renovated buildings, modern heating networks, waste heat, large heat pumps and other low-emission technologies.
Solar Has Become the Fastest-Moving Part of the Power Mix
Solar energy was once a minor part of Latvia’s electricity system. That changed quickly as panel costs fell, electricity prices rose and households and businesses began installing their own generation.
Latvian solar output reached 536 gigawatt-hours in 2024, more than double the previous year.[1] Solar generating capacity connected to distribution networks increased from about 100 megawatts in 2022 to 305 megawatts in 2023 and approximately 660 megawatts by the end of 2024.[2]
Latvia may not have southern Europe’s sunlight, but it has very long summer days. Solar panels can produce strongly during late spring and summer, including periods when heating demand and gas use are lower. Large commercial roofs, farms, industrial sites and open land all offer development opportunities.
The challenge is timing. Electricity production peaks around midday and during the brighter half of the year, while Latvia’s largest energy demand often comes during dark winter mornings and evenings. Solar power therefore cannot replace hydropower, gas or electricity imports by itself.
Rapid growth has already changed electricity prices. During sunny hours in 2024, Latvian wholesale prices could be much lower than during the rest of the day, and the country experienced more hours with negative prices.[2] Batteries, flexible industrial demand, electric vehicle charging and stronger regional connections can help use this cheap electricity instead of wasting it.
Wind Power Is Latvia’s Larger Strategic Opportunity
Wind generation has developed more slowly than solar energy. Latvian wind farms produced about 276 gigawatt-hours in 2024, only slightly more than the previous year.[1] This was far below hydropower production and was overtaken by the rapidly expanding solar sector.
The resource potential is much larger than present output suggests. Western Latvia and the Baltic Sea coast have favorable wind conditions, while offshore areas could support projects operating at a much greater scale than current onshore farms.
Development has been slowed by permitting, environmental assessment, grid access, local opposition and questions about the effect of turbines on landscapes, wildlife and nearby communities. These issues do not remove the potential, but they make project planning more complex.
One major proposal is ELWIND, a joint Latvian-Estonian offshore wind project. The project is intended to increase renewable generation, improve regional electricity connections and support Baltic energy independence. Environmental studies are continuing, with an auction currently planned for 2029, construction after 2030 and commissioning expected from 2033 onward.[8]
ELWIND remains a future project rather than a guaranteed power source. Latvia will also need transmission cables, substations, port facilities, maintenance services and market arrangements before offshore wind can contribute at full scale.
Onshore wind may arrive sooner. Its growth could complement solar because wind output is often stronger during darker and colder periods. A balanced combination of hydro, wind, solar, biomass and flexible generation would be more reliable than depending too heavily on one renewable source.
February 2025 Changed Latvia’s Electricity Security
Latvia’s most important recent electricity infrastructure project was the synchronization of the Baltic power systems with continental Europe.
On 8 February 2025, Latvia, Estonia and Lithuania permanently disconnected from the Russian and Belarusian IPS/UPS frequency system. The following day, the three countries successfully synchronized with continental Europe through the connection between Lithuania and Poland.[6]
This change was more important than ordinary electricity trade. Before synchronization, the Baltic grids still depended on the Russian-controlled system for frequency management, even though commercial electricity imports from Russia had already ended.
Latvia and its neighbors can now manage frequency in cooperation with the European network. The transition required new transmission infrastructure, control systems, reserve markets and synchronous condensers. These condensers help maintain voltage, inertia and grid stability without producing electricity in the same way as a conventional power station.
The project reduced a major geopolitical risk, but it did not make Latvia independent from electricity imports. Latvia remains part of a regional market in which electricity moves between the Baltic states and the Nordic and continental European systems.
Energy independence in this context does not mean isolation. It means having several suppliers, secure connections, domestic generating capacity and control over critical infrastructure rather than relying on one external system.
The Grid Must Catch Up With New Generation
Latvia’s next infrastructure problem is connecting new renewable projects without weakening reliability. Solar farms, wind parks and household panels are often located far from traditional power plants. Their output can also rise and fall more quickly.
The transmission and distribution networks must manage two-way electricity flows, not only the old model in which large stations sent power to passive consumers. This requires stronger lines, modern substations, digital controls and more accurate production forecasts.
Storage will become more valuable as renewable capacity grows. Batteries can move solar electricity from midday into the evening, provide balancing services and reduce pressure on local networks. Hydropower already provides some flexibility, while gas-fired CHP plants can respond during longer periods of weak renewable generation.
Connections with Estonia and Lithuania also remain central. Latvia’s power system is too small to manage every possible shortage or surplus alone. Regional trade allows wind generation in one area, hydro output in another and imports from Nordic or continental markets to support the wider system.
The country’s grid investment must therefore serve two goals at once: connect domestic renewable projects and maintain secure access to regional electricity markets.
Buildings and Transport Are Harder to Decarbonise Than Electricity
Latvia’s electricity sector receives much of the attention because hydropower, solar and wind are visible parts of the transition. The harder work lies in buildings and transport.
According to the International Energy Agency, buildings account for nearly half of Latvia’s final energy consumption, with residential buildings alone responsible for about one-third.[3] Many apartment blocks and public buildings are old, poorly insulated and expensive to heat.
Renovating these buildings can reduce fuel demand, household bills and emissions without building new generating capacity. Better insulation, windows, ventilation and heating controls are especially valuable in a cold climate. The difficulty is the cost of renovation and the need for agreement among apartment owners.
Transport presents a different problem. Latvia’s cars, trucks, buses, aircraft and ships depend heavily on imported oil. Electrification can reduce this dependence, but it requires affordable vehicles, charging networks and enough clean electricity.
Latvia’s final updated National Energy and Climate Plan sets a goal for renewables to reach 61% of final energy consumption by 2030. It also targets more than 80% renewable energy in final electricity consumption and 29% renewable energy in transport.[7] The transport target is particularly demanding because progress has been much slower than in electricity and heating.
Latvia’s 2030 Energy Test
Latvia already has many of the elements needed for a lower-carbon and more secure energy system. It has major hydropower plants, a strong biomass sector, valuable gas storage, access to regional electricity markets and rapidly growing solar capacity. The end of dependence on Russian electricity frequency control was another major step.
The country’s remaining task is to turn those advantages into a more balanced system. Solar needs storage and flexible demand. Wind needs permits, grid connections and public acceptance. Hydropower needs modernization but will remain exposed to water conditions. Biomass must support heating without weakening Latvia’s forests. Gas infrastructure must provide security while fossil fuel use gradually declines.
Latvia’s energy future will be decided less by one dramatic project than by the connection between many smaller decisions: renovating apartment buildings, reinforcing transmission lines, developing wind farms, improving district heating and reducing imported oil use. Hydropower will continue to anchor the system, but grid investment and energy efficiency will determine whether Latvia can convert its renewable resources into lasting energy independence.