PRODUCTION AND CONSUMPTION OF FUELWOOD AS ENERGY RESOURCE: CASE OF LATVIA

In Latvia, renewable energy occupies more than 30 % in the primary energy balance, since wood, including firewood, wood chips, wood waste, briquettes, pellets, and hydro resources are two most frequently used forms of renewable energy. Fuelwood is the most common form of renewable energy resources, and its share in total energy consumption has increased from 23.4 % in 2010 to ca. 28.2 % in 2015. The research aim is to analyse the production, consumption and trade of fuelwood based on the forecasts for fuelwood consumption by 2020. Various forecasts show the maximum demand for fuelwood in 2019 amounting to 6.8 million m(3) with a minor decline in the following year to 6.3 million m(3); however, the present research demonstrates that the fuelwood consumption decreases from 2015 and following the declining trend, the demand for fuelwood could be even smaller than forecasted. The research reflects that total fuelwood consumption in 2014 has increased by 4.65 % compared with 2013 due to the increase in the share of fuelwood consumption both by households and transformation sector generating heat and electricity, while in 2015 it has dropped by 8.1 %. The main consumers of fuelwood are households, mostly using wood (54 % on average). In 2014, consumption of fuelwood share of households was 44.6 %, while in 2015 it was 38.2 %. The major export markets for Latvian timber products are the UK, Germany, Sweden and Estonia. In the first half of 2015, fuelwood amounted for 13 % of forest industry exports. However, the structure of timber product exports has undergone considerable changes: before the 2008 crisis particular exports were related to construction products export like timber, though during the crisis period, the share of fuelwood exports increased with the decrease of the demand and production of timber. This is mainly due to the improvement and growth of timber enterprise technological capabilities and production capacities. The large share of wood and its products exports contributed to the economic recovery in the post-crisis period.