The Energy Market in Turbulence, but Rates Remain Stable 0 8

Expenses are rising, but this is not yet reflected in rates

Industry representatives already note that due to the rising cost of diesel fuel, expenses for energy resources are increasing; however, in the near future, this is unlikely to significantly affect heating energy rates, believes Ina Berziņa-Veita, president of the Latvian Association of Heating Supply Enterprises.

The heating season is nearing its end, and part of the fuel has been purchased in advance, so more clarity on price trends may emerge with the start of new purchases for the next season. Currently, the market feels more uncertain, as any international events can influence energy resource prices and the overall situation in the sector, Berziņa-Veita notes, adding that in terms of general trends, the heating supply sector is actively moving towards electrification.

"More and more people are considering the use of heat pumps and other electricity-based solutions in heating supply; however, this is still a relatively new direction, so it will only be possible to assess how it will affect the overall situation in the sector in the coming years. Much will depend on fluctuations in electricity prices, as well as on cooperation with electricity network operators, as it is currently difficult to accurately predict how intensively these technologies will be used. For this reason, the sector, together with JSC 'Augstsprieguma tikls' and JSC 'Sadales tikls', is working on new solutions to find the most suitable models for using electricity in heating supply. At the same time, work is underway on the effective integration of renewable energy sources, including solar and wind, into the heating supply system. The process of finding optimal synergy models between electricity and thermal energy is moving slowly, so that solutions are economically justified for both enterprises and consumers," explains Berziņa-Veita.

Speaking about the geopolitical situation and the new challenges associated with it, she acknowledged that the energy sector is currently experiencing a rather turbulent period.