DEVELOPMENT TRENDS IN THE ENERGY SECTOR OF LATVIA

The energy sector is an important sector of the national economy that produces energy resources, processes them into energy and supplies to consumers. The production of energy is based on oil products, natural gas, coal, nuclear energy and hydro energy. As the climate change problems became urgent and the amount of CO2 emissions increased, "green energy" or renewable energy sources solar energy, wind energy, biomass, geothermal energy, etc. became popular. Presently the use of wind and solar energy, biomass and other sources of energy, which would allow increasing the proportion of renewable energy in the country's energy balance, is insufficient. It means that Latvia, too, needs to increase energy efficiency and the use of renewable sources, thus reducing the effect on climate change. Latvia considerably depends on imported energy resources (oil products, natural gas and coal). Only 33% of the total consumption of energy in Latvia is composed of domestic energy sources (timber, peat and hydro resources). To reduce the effect on climate change, the key potential priorities in the energy sector are an increase in energy efficiency both on the part of producers and on the part of consumers as well as an increase in the proportion of renewable energy in primary energy consumption. The research examines the overall macroeconomic trends in the energy sector and the situation in this sector, including the overall development trends in the EU and in Latvia. The research employs quantitative and qualitative research methods to identify future trends in the energy sector and opportunities for greater use of domestic energy sources and greater energy security.