Latvian government receives plan for MPC cancellation in 2022
Latvian Economy Ministry has submitted to the Cabinet of Ministers Committee a report on solutions for support of electricity producers to allow for the cancellation of the mandatory procurement component from 2022 onward and provide fair support for green energy producers based on market principles.
The ministry claims that the proposed solutions for the cancellation of MPC system were evaluated from ecological and legal aspects, as well as with consideration in regards to the impact on the state budget. «If proposed measures are to be implemented fully, it will help balance public and national economy interest in the mediumterm, as well as secure state electrical energy security and help achieve long-standing goals of Latvia’s energy policy,» Economy Ministry explains.
The proposed solutions include the following:
-prevent over-subsidization of all MPC power plants in 2019; -reduce support for non-commissioned power plants in 2019; -introduce stricter requirements for biogas stations’ raw materials in 2022;
-cease processing payments from end users to natural gas CHP plants, except for TEC 2 as a strategically important energy plant, in 2022.