As a result of energy efficiency measures, companies will cut costs by more than 24 million Euro in the next 4 years

24-08-2018

Enterprises that, pursuant to the Energy Efficiency Law, meet the criteria for status of a large electricity consumer with the annual electricity consumption of over 500 MWh, by implementing the measures for improvement of energy efficiency will reduce their business costs by more than EUR 24 million over the next four years.
 

The Ministry of Economics welcomes the initiative of enterprises as well as the measures already implemented and planned for promoting energy efficiency, ensuring not only rational use of energy resources in the company and hence reduction of business costs, but also increasing the competitiveness of the Latvian economy as a whole.
 

In order to promote energy efficiency increase and raise the level of competitiveness of enterprises, the Energy Efficiency Law provides for the obligation for merchants to implement an energy management system, to carry out energy audit or supplement the existing environmental management system with energy efficiency measures and to report to the Ministry of Economics accordingly. For businesses that meet the criteria for status of a large electricity consumer with annual electricity consumption of over 500 MWh, statutory obligations had to be met by 1 April 2018.
 

Compiling the information provided by merchants, the Ministry of Economics has concluded that out of the approximately 1200 large electricity consumers, 880 merchants have complied with the statutory requirements. At the end of August, the ministry will send reminders to other merchants who have failed to comply with statutory requirements and/or have failed to provide information to the ministry on the progress of the compliance with statutory duties.
 

Enterprises that had already implemented individual energy efficiency measures in 2016 reported energy savings of 80 GWh, while compiling the information provided by enterprises on the measures to be implemented in the period before 2022, the energy savings are projected at 255 GWh, with the total cost of energy savings of more than EUR 24 million. It is essential to emphasize that savings are made throughout the life of an energy efficiency measure, thereby further increasing the energy and monetary savings.
 

It can be concluded from the information provided by the companies that many merchants such as SIA Baltic Block (LLC), SIA LEAX Rēzekne (LLC), and SIA Teletower (LLC) have complied with the statutory requirements before the deadline and successfully implemented the energy management system in accordance with the ISO 50001 standard. Several enterprises, such as SIA Rīgas universālais termināls (LLC), AS Siguldas Būvmeistars (JSC) et al., had an environmental management system in place before the Energy Efficiency Law entered into force, thus allowing them to supplement it with a continuous energy consumption assessment process at the same time ensuring compliance with the requirements of the law.
 

We welcome SIA Smiltene Impex (LLC) approach to implementing the company's energy policy, carrying out both the company energy audit and implementing an energy management system in accordance with the ISO 50001 standard. Several state and local government enterprises, such as the VAS Latvian Latvijas Valsts radio un televīzijas centrs (SJSC), the local government SIA Ventspils siltums (LLC), local government AS Daugavpils siltumtīkli (JSC), and local government SIA Ventspils Labiekārtošanas kombināts (LLC) have also reported their compliance with the law.
 

State has provided for additional advantages for enterprises concerned with efficient utilization of energy and resources. In accordance with the Energy Efficiency Law, the existence of a certified energy management system is a favourable qualifying criterion for evaluating large energy consumer project applications for various types of state support. In turn, energy-intensive manufacturing enterprises that have implemented energy management can qualify for a reduced mandatory procurement component of electricity, thus further reducing their cost of electricity. Additional information on the qualification criteria for this type of support is available in Cabinet of Ministers Regulation No.395 of July 14, 2015 “The Procedure in which Energy-Intensive Manufacturing Enterprises Become Eligible to Reduced Participation in the Payment of the Mandatory Procurement Component”.
 

At the same time, it should be reminded that to merchants whose electricity consumption in 2017 exceeded 500 MWh and who have failed to take the relevant energy efficiency measures by April 1, 2018, an energy efficiency tax will be applied, which will be transferred to the Energy Efficiency Fund, from which Altum will support implementation of various energy efficiency measures.

Last update:    08-11-2018