Abstract for: Residential Energy Efficiency Policy in Latvia: A System Dynamics Approach

To ensure implementation of requirements of EU Directive 2006/32/EC on energy end-use efficiency and energy services in Latvia First National Energy Efficiency Action Plan (EEAP) 2008 – 2010 is approved where the goal is established to reduce energy consumption by 3483 GWh by 2016. The greatest energy savings 77% or 2701 GWh are planned in the residential sector as it is the major energy end user in the country. The largest part of it is multifamily buildings with every flat owned by individual owner. Although Latvia has huge building energy efficiency potential former policies are not noticeably facilitating its use – an increase of number of renovated buildings is insignificant – only 100 of more than 30 000 apartment buildings are completely renovated. It indicates that energy efficiency measures have to be reviewed in wider socioeconomic context considering that inhabitants’ motivation is impacted not only by rational reasons but also by combination of complex socioeconomic factors. In order to understand how building renovation process is affected by different energy efficiency policies a system dynamics model was developed. With the help of the developed model it was possible to determine whether the goals set in the First National Energy Efficiency Action Plan are achievable.