Latvia may drop using MPC system in the next three years’ time
Latvia may completely cease using the mandatory procurement component system, as confirmed by Economy Minister Arvils Ašeradens.
This proposal was supported this Wednesday by the ministry’s work group that has worked on ways to cancel MPC system these past several months.
To abolish the system, the ministry proposes restoring subsidized electricity tax at 15% in 2019 and establishing new requirements for biogas plants on minimal food waste and other organic waste ratio.
It is also planned to reform power output payments, forming changes to its administration, establishing a requirement for power stations to include ancillary services to the transmission system to reduce consumers’ payments.
Economy Ministry also proposes reviewing regulations governing internal profits, and adopting so-called green certificates to be sold by energy producers to traders.
On 17 April, Latvia’s government decided to form a work group to research ways to abolish the mandatory procurement component system. Ašeradens is the leader of this group and Economy Ministry’s state secretary Ēriks Eglītis is his deputy.
The work group also includes representatives from ministries and state institutions, as well as experts from renewable energy resource industry and organizations like Latvian Employers’ Confederation, Latvian Chamber of Commerce and Industry, Foreign Investors Council and other partners of the government.