Electricity producers will have to invest the extra profit from December and the first half of this year in their own or an affiliated company’s decarbonization technologies, renewable resources, and energy efficiency.
This is foreseen in the amendments supported by the National Economy, Agrarian, Environmental, and Regional Policy Commission of the Saeima. With them, it is planned to set the ceiling of the revenue of the sold electricity in the amount of 180 euros for a one-megawatt hour of the produced electricity from the 1st of December, 2022 to the 30th of June of this year.
The regulation will apply to producers with a capacity of more than one-megawatt hour.
The State Control Office for Construction should be informed about the amount and use of excess revenue. The regulation will not apply to producers who produce electricity from biomethane or natural gas and provide direct support to end-users of electricity – for example, they produce electricity in cogeneration facilities and are included in the calculation of heat energy supply service tariffs.
Also, with the amendments, the law aims to strengthen the prohibition of electricity trade transactions with Russia and Belarus, as well as the prohibition of supplying electricity for trade using Russian and Belarussian power systems.
In response to the MPs’ questions, the representatives of the Ministry of Climate and Energy previously stated that trade with Russia and Belarus no longer takes place, based on the decision of the Cabinet of Ministers on the 11th of October of last year.
To ensure the balance of electricity in the Latvian power supply system, and the safety and operational stability of the transmission system until synchronization with the European power grids, the transmission system operator will be allowed to exchange balancing electricity with the Russian transmission system operator or trader without making financial settlements. The system operator will have to ensure that the amount of balancing electricity received from Russia is not greater than the amount of balancing electricity transferred to it.
It is intended that the amendments will enter into force the day after their announcement. In order for the draft law to enter into force, it must be supported by the Saeima in the final reading.