Latvia’s energy policy management is failing to effectively advance the objectives of the National Energy and Climate Plan (NECP) and lacks a clear financing strategy, risking non-compliance with EU requirements. Implementing the NECP requires at least EUR 13.1 billion in additional investments, yet only EUR 3.8 billion has been allocated.
Mārtiņš Āboliņš from the State Audit Office warns that without significant private investment, meeting the NECP goals by the deadline is at risk. He stresses the urgent need for prioritised actions to ensure progress, as only six years remain to achieve the plan’s targets.
The auditors highlight that the current institutional framework does not support effective implementation and monitoring of the NECP. Responsibilities between the Ministry of Climate and Energy and the Ministry of Economics remain unclear, leading to inadequate task execution. Key measures due by 2023 have only been partially met, and the expected development of the NECP and energy research funding has faced delays.
Moreover, the planned oversight mechanisms are not functioning, and the National Energy and Climate Council has been inactive since 2021. Given the limited time and resources available, the State Audit Office urges a focus on priority measures that will significantly impact the NECP goals. Interim indicators are also needed for regular progress assessments and the necessary adjustments.
After the audit, the State Audit provided three key recommendations to the Ministry of Climate and Energy and the Ministry of Economics.
First, they advised enhancing energy policy management by defining priority measures from NECP and improving monitoring to attract private funding for the energy sector.
Second, they suggested reducing administrative barriers to facilitate greater involvement of electricity producers in renewable energy development.
Lastly, they called for better quality in energy sector development documents, including a suitable electricity generation structure for Latvia and accurate forecasts for capacity and consumption.
