Ecology, Energy, Latvia, Legislation

The licenses have been revoked for three Baltekogen heat-and-power plants in the regions of Rauna, Karsava and Ludza, Tektus plant in Amata region, Digne plant in Vecumnieki region, Atauga-G plant in Olaine region and Krustpils AER power plant in Kustpils region.

The licenses to sell renewable energy have been annulled because it was discovered that the power plants had not started power generation.

The Economics Ministry has thus annulled licenses to 15 power plants, preventing the total costs of the mandatory purchase component (MPC), which is the part of the electricity price used to subsidize green energy producers, from growing by EUR 214 mln in the next decade, according to the ministry’s estimates.

As reported, following the reports on possible fraud in several cogeneration plants, the Economics Ministry recently conducted inspections at several companies and found that they were not generating any power. Most probably, the power plants had been turned on just for the necessary 72-hour test period to get their licenses approved.

In December 2017, licenses were annulled for three companies – Elektro Ridzene, Energo Fortis and E Strenci, and this year licenses were annulled for Madonas Eko, Eiro-Azijas Investiciju Agentura, Evokem, M Parks, and Eco Latvis.

The Economics Ministry also has proposed amendments to the Cabinet of Ministers regulations and increase control over the process.