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LEGAL ACTS OF THE REPUBLIC OF LATVIA
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Republic of Latvia

Cabinet
Order No. 129

Adopted 26 March 2014

On Electromobility Development Plan 2014-2016

1. To support the Electromobility Development Plan 2014-2016 (hereinafter - the Plan).

2. To determine the Ministry of Transport as the responsible authority in implementation of the Plan.

3. To review the issue on assigning additional resources from the State budget so that in 2015 and subsequent years to ensure implementation of measures according to the action directions for introducing the electromobility support policy, at the Cabinet during the process of preparing and reviewing the framework of the draft law on State budget for 2015 and the draft law on medium-term budget for 2015, 2016 and 2017 together with proposals of all ministries and central State authorities for new policy initiatives according to the financial possibilities of the State budget of the respective year.

4. For the Ministry of Transport in co-operation with the Interdepartmental Co-ordination Centre to prepare and for the Minister for Transport to submit the following informative reports to the Cabinet according to specific procedures:

4.1. until 1 July 2015 - the interim assessment of implementation of the Plan;

4.2. until 1 July 2017 - the final impact report on implementation of the Plan, including proposals for the development of electromobility in subsequent years.

Prime Minister Laimdota Straujuma

Minister for Transport Anrijs Matīss

 

(Cabinet
Order No. 129 of
26 March 2014)

Electromobility Development Plan 2014-2016
(summary)

The Electromobility Development Plan of Latvia 2014-2016 (hereinafter - the Plan) has been drawn up according to Paragraph 2 of the protocol decision of the Cabinet meeting of 11 December 2012 (protocol No. 70, Section 42, Paragraph 2) "Informative Report On the Need to Establish an Electromobility Co-ordination Centre", in which it is provided for that the Ministry of Transport together with experts of the Interdepartmental Co-ordination Centre must submit to the Cabinet a draft Plan for examination according to the directions laid down in the National Development Plan 2014-2020.

1. Description of the Situation

Electromobility is one of the components of the field of transport, and it will be incorporated fully in the policy of the field of transport in long-term. It includes the segment of electric vehicles (environment-friendly vehicles which are basically operated by an electric motor) (hereinafter - the EV) and the infrastructure for charging thereof, as a result of which the greenhouse effect is reduced, also CO2 and other harmful emissions and environmental noise level is reduced and fossil fuel reserves are saved at the same time.

1.1. Need for Support to Electromobility

The main three reasons why Latvia needs support for the development of electromobility are as follows:

• to increase the competitiveness of enterprises of Latvia for the creation of a new field of transport;

• to increase the energy independence of Latvia;

• to reduce gases causing pollution and greenhouse gas effect.

The industry of vehicles with internal combustion engines has solidified its positions during the last 100 years, and it is almost impossible for new enterprises to enter it. In turn, currently there is no pronounced competition in manufacturing of electric vehicles and there are vehicle units having only one or few suppliers in the world - it creates new opportunities for entering an industry worth billions of euros, which will replace the industry of vehicles with internal combustion engines in the nearest 30 years. Being aware of that, the countries around the world take active measures for supporting entrepreneurship in order to become the leading countries in this emerging field of electromobility. Hitherto the USA have invested or are planning to invest in the nearest future five billion dollars in development of electromobility, China - more than one billion euros, Germany - one billion euros, Great Britain - 800 million euros, France - 400 million euros.

It is particularly important to promote the competitiveness of enterprises of Latvia, taking into account that Latvia holds the 25th position in the field of innovations in Europe1 and innovations are the cornerstone of future competitiveness.

Energy independence is strategic priority of any country. Although within the last 20 years Latvia has become more independent in terms of energy (the total amount of imported energy has decreased from 88.9% in 1990 to 59.1% in 20112), it is provided for in the NDP2020 to increase energy independence of Latvia from 41.6% in 2010 up to 44.1% in 20203. Energy independence of Latvia in the field of transport is higher than in national economy at large. 97% of energy used in transport of Latvia is fossil energy, and it is being imported in the amount of 100%. Every year Latvia imports fossil fuel for ensuring transport in the amount of more than half billion of lats, thus creating an external trade deficit in the amount of 6.5%4. In terms of quantity the consumption of fossil fuel in Latvia exceeds 1.1 million of tonnes per year. Taking into account the current retail prices it amounts up to more than one billion lats (1.42 billion euros), which inhabitants of Latvia have paid for imported fossil fuel, moreover, Latvia cannot influence the prices of imported fuel, therefore, economy of Latvia is completely dependent on oil exporting countries in the field of strategic resources.

At large progress has been achieved in Latvia in relation to CO2 emissions during the last years. The most significant amount of CO2 emissions is in Riga. The total amount of CO2 emissions has decreased in Riga by 50% in comparison to 1990 - from 4.2 to 2.3 million of tonnes of CO2, however, it is apparent that emissions from transport have increased and reached 37% from the total amount of CO2 emissions, becoming the largest source of emissions with 860 000 tonnes of CO2. One of the ways of reducing the amount of CO2 emissions in transport is the development of electromobility, using renewable energy resources. The NDP2020 provides for the creation of support programmes for transition to renewable energy resources in the transport sector and for the provision of the necessary infrastructure, as well as supporting innovations as a result of which use of economically advantageous alternative energy resources is being promoted.

1.2. EU Electromobility Policy and Requirements for the Support of Electromobility in EU Member States

The White Paper "Roadmap to a Single European Transport Area - Towards a competitive and resource efficient transport system" invited to break the dependence of the transport sector on oil and determined a target to reduce the amount of transport greenhouse gas emissions by 60% up to 2050. Therefore, the European Commission undertook to draw up a sustainable alternative fuels strategy, as well as to develop a proper infrastructure.

On 25 January 2013 the European Commission proposed a new proposal for a Directive of the European Parliament and of the Council on deployment of alternative fuels infrastructure. The proposal for this Directive lays down the requirements for drawing up State political regulation in relation to the development of alternative fuels market and the development of the minimum of an alternative fuels infrastructure, also introduction of joint technical specifications.

The purpose of the Directive is to ensure the development of an alternative fuels infrastructure and the introduction of the joint technical specifications of such infrastructure in the European Union. Concurrently the proposal identifies the possible activities in order to stimulate the use of alternative fuels and to ensure the industry, public sector and consumers with a clear and co-ordinated vision regarding the development of the alternative fuels market.

It is provided for in the proposal that each Member State should ensure the minimum number of charging points for electric vehicles, 10% of which would be accessible to the public. Also joint technical specifications for interfaces between charging points and vehicles, as well as for the provision of shore-side electricity for water vehicles should be introduced.

2. Solution Offered

2.1. Results to be Achieved by the Plan

Electromobility concerns several fields concurrently: provision of environmental protection and sustainability, energy, entrepreneurship, transport. Therefore, electromobility has a considerable potential in future development of economy of Latvia. In order to promote the development of electromobility, the Plan provides for specific directions of support policy in relation to the most important elements thereof: distribution of EV, building of the network of charging points, support to the development of innovative products, also educating of the society and provision of access to information regarding electromobility.

On the basis of the common transport policy of the European Union, in which it is provided for that transport should consume less and purer energy, use of modern infrastructure should be preferred and negative environmental impact should be reduced, the objective of the Plan is to reduce the dependence of the transport system of Latvia on oil, improving its efficiency, ensuring mobility and promoting creation and use of innovative technologies in the transport field of Latvia.

According to the NDP priorities three main results should be achieved:

• increase of competitiveness of Latvian enterprises for the creation of a new field of transport;

• increase of energy independence of Latvia;

• reduction of pollution and gases causing greenhouse effect.

2.2. Main Principles for Introducing Electromobility

In drawing up the electromobility support policy, it is based on the following basic principles:

• financial validity;

• the "user pays" principle and the "polluter pays" principle;

• priority for educating and non-financial support activities;

• use of the European Union financing;

• progressiveness:

• priority is support to the development of local technologies and products;

• the system to be established will be based on the world's best examples and latest technologies;

• co-operation:

• involvement of the society (informative and educating measures);

• co-operation with enterprises (in development of the electromobility infrastructure, in development of technologies);

• openness and equality:

• the EV charging infrastructure in Latvia will be established on the basis of an open charge point protocol (OCPP) in order to prevent dependence on one manufacturer and supplier of equipment;

• according to the requirements of the draft directive on alternative fuels infrastructure the electromobility system of Latvia must ensure equal treatment of all employees of the industry, ensuring that any user of EV may use any charging point regardless of which operator's client he or she is.

2.3. Implementation of the Electromobility Policy

Four main action directions and 38 activities are provided for in introducing the electromobility policy of Latvia.

The main action directions are:

• support to science and development of innovative products;

• creation of EV charging infrastructure;

• stimulation of purchasing EV;

• strengthening of administrative capacity and informative measures.

Establishment of the infrastructure for charging electric vehicles is one of the most important tasks to be performed in order for the development of electromobility to be possible.

It is planned to introduce a two-level charging infrastructure in Latvia:

1) the national level infrastructure, which would be joint, open-type fast charge infrastructure throughout the territory of Latvia, and it is intended to implement it from the resources attracted from the ERDF. It is planned to build the national infrastructure on TEN-T roads and in populated areas of Latvia where the number of inhabitants exceeds 5000 inhabitants;

2) local level infrastructure, for the establishment of which co-operation programmes with local governments are intended for the placing of charging points on the side of the street, in parking lots belonging to local governments and near public buildings, as well as co-operation programmes with entrepreneurs for the establishment of infrastructure near shops, restaurants, etc.

The basic tasks in establishment of the EV charging infrastructure in Latvia are as follows:

• to perform research of the national network of charging points and determination of location of charging points;

• to perform construction of the national network of charging points;

• to establish a clearing centre for the EV charging infrastructure network and to carry out the functions of the clearing centre among charging network operators of Latvia and other countries;

• to ensure compatibility of the control systems of operators with the charging points to be installed in Latvia.

It is intended to organise support to science and development of innovative products in the field of electromobility, ensuring co-operation with scientific and educational institutions and manufacturing enterprises of Latvia.

It is intended to take measures for stimulation of EV purchase, taking into account the limited possibilities of the budget of Latvia, therefore, a special emphasis is put on activities which do not require direct financial investments:

• tax allowances upon purchasing and using EV;

• tax policy change, increasing taxes for polluting vehicles;

• use of EV in public transport lanes;

• free-of-charge parking of EV in public parking lots;

• right to use EV free of charge in chargeable areas or "clean areas" (in future).

Direct financial support is intended as the chronologically last activity because it has a short-term effect and, as demonstrated by experience of Estonia, it is not very efficient, if other measures are not implemented - particularly if there is no generally accessible infrastructure for charging EV.

2.4. Organising Electric Mobility

The Ministry of Transport is responsible for the field of electromobility in Latvia. Its functions include:

• to draw up electromobility policy;

• to organise and co-ordinate the implementation of electromobility policy;

• to draw up draft legal acts and policy planning documents that govern the respective sector.

It is planned to establish an Electromobility Control and Co-ordination Centre (EMCCC) for introduction of the electromobility policy of Latvia drawn up. The EMCCC has the following duties:

• to prepare and, in accordance with the procedures laid down in laws and regulations, to provide proposals for drawing up of legal acts and policy planning documents governing the field, also on the basis of experience acquired, to submit proposals to the Ministry of Transport for the necessary support programmes;

• to ensure implementation of the measures provided for in the laws and regulations and the respective policy planning documents, including:

• to ensure the establishment of the national charging infrastructure of Latvia;

• to co-operate with local governments and commercial companies in introduction of the infrastructure, ensuring technical support software basis;

• to draw up technical standards of Latvia for electromobility according to the norms of standards and to ensure their introduction in order to achieve efficient compatibility of the charging systems installed in Latvia in a joint network;

• to perform the maintenance of the register for use of green energy certificates of EV.

The Plan contains an evaluation of the three EMCCC models of operation observed in global practice and it is recommended to implement the divided function model in Latvia as the most appropriate model for the situation of Latvia and corresponding to the State Administration Structure Law.

The divided function model provides for separation of the function of introducing electromobility from support (awarding and control of grants) functions. In this model electromobility support functions, including grant administration, could be performed by the Ministry of Transport, but the functions of introducing electromobility - by the State stock company "Road Traffic Safety Directorate" (hereinafter - the RTSD).

This model is the most appropriate for Latvia because State authorities have experience and resources for the provision of support functions (grant administration and sectoral control), however, do not have specialists in the field of electromobility. Such specialists with experience in issues of electromobility are in public organisations (for example, Latvian Energy Efficiency Association, Green-tech Cluster of Latvia, Zero Emission Mobility Support Society), in turn, the RTSD maintains and ensures the State register of vehicles and their drivers (hereinafter - the register) that contains information regarding all vehicles registered in traffic of Latvia, which would allow rapid and easy accounting of EV, reducing administrative costs. Similarly, the RTSD is already ensuring data exchange with the respective registers of other countries. By delegating the functions of the EMCCC to the RTSD State administrative functions could be reduced and the existing register could be used for ensuring accounting of EV.

3. Financing of the Plan

The anticipated summary of the financing of the Plan is presented in the Table according to the directions of the purpose.

Division of the Financing of the Electromobility Development Plan 2014-2016

(mill. of EUR)

Electromobility support direction

Financing in total

Public financing

Private and local government financing2

EU funds

State budget5

CCFI1

1. Innovation, research, development

10,7*

7,04*

1,7*

0,0*

2,0*

2. Strengthening of administrative capacity and informative measures

0,7

0,0

0,7

0,0

0,0

3. Creation of EV charging infrastructure

13,09

7,093

3,2

1,7

1,1

4. Stimulation of purchasing EV

5,4

0,0

0,1

3,3

2,0

In total

29,99

14,09

5,7

5,0

5,2

Notes.
1 Open competition of projects financed by the Climate Change Financial Instrument administered by the MoEPRD "Reduction of Greenhouse Gas Emissions in Transport Sector - Support to Introduction of Electric Vehicles and Their Charging Infrastructure".
2 Co-financing of local governments on the basis of principles of voluntary participation, if local governments wish, upon receipt of State co-financing, to install EV charging points or to purchase EV.
3 In the planning period 2014-2020 of EU funds the indicative support planned within the scope of the European Regional Development Fund is 7.09 million euros, supporting the establishment of the infrastructure for charging electric vehicles and the centre of operators controlling them.
4 Financing from the ERDF for continuation of the Competence Centre Programme according to the provisions drawn up in the subsequent planning period of EU Structural Funds (2014-2020). Enterprises will be able to apply for receipt of support according to the procedures of general competition in activity programmes of the MoE according to the provisions drawn up in the subsequent planning period of EU Structural Funds (2014-2020).
5 Additional expenses from the State budget are not necessary in 2014. The issue regarding assigning of additional resources from the State budget for the provision of measures according to the action directions for introducing the electromobility support policy in 2015 and subsequent years shall be reviewed by the Cabinet during the process of preparing and reviewing the draft law on State budget for 2015 and the draft law on medium-term budget for 2015, 2016 and 2017 together with proposals of all ministries and central State authorities for new policy initiatives according to the financial possibilities of the State budget of the respective year.
* The indicator is indicative.


1 Innovation Union Scoreboard 2013 http://www.proinno-europe.eu/metrics
2 Eurostat: Energy transport and Environment Indicators 2012.edition ISSN 1725-4566
3 NDP 2020 [198]
4 Central Statistical Bureau of the Republic of Latvia www.csb.lv

Minister for Transport Anrijs Matīss

 

(Cabinet
Order No. 129
26 March 2014)

ON ELECTROMOBILITY DEVELOPMENT PLAN FOR 2014-2016
(informative part)

Riga 2014

4.4 Electromobility in Latvia

Latvia is in the start stage in the field of electromobility compared to developed countries of the European Union and the world. Now in Latvia electromobility is implemented mainly as a result of initiatives of commercial companies and public organisations, but taking into account the trends of development of electromobility in the world, objectives of the EU transport policy, and also the potential of this field, it is necessary for the State to establish particular actions for faster development of electromobility in Latvia.

4.4.1 Present support of legislation

Now there are several laws which stimulates wider use of EV in Latvia, by providing support to BEV vehicles:

• BEV EV is exempted from passenger car and motorcycle tax;

• BEV EV is exempted from vehicle operation tax;

• the amount of a representative passenger car is increased up to EUR 50 000;

• BEV EV has a reduced payment for technical inspection.

Concurrently there are several laws which in the contrary - interfere with the use of EV:

• Enterprise tax for a passenger car - EV is not distinguished in the law as a separate category of vehicles, therefore a general rate 30 EUR/per month is applied.

• Cabinet Instruction No. 12, Procedures for Purchase and Lease of Service Passenger Cars, stimulates the use of vehicles of low emission, however the laid down maximum amount limit for purchase of a vehicle excludes the purchase of EV.

Now in Latvia there is no indirect support introduced for EV users: the possibility to use parking places free of charge and the right to use EV in the public transport lane, etc.

Now the city of Riga considers the possibilities to allow parking of EV vehicles free of charge in parking places, however this decision delays, because EV recognition signs have not been laid down in the legal acts that would allow to control the use thereof.

4.4.2 EV charging infrastructure in Latvia

For the time being there are 9 charging places with 30 charging points1in Latvia 7 of which are in Riga, one in Jurmala and one in Jelgava. One of these charging points is 20kW Type2 charging point, which complies with the requirements laid down in the draft EU Directive (4 Jomas Street, Jurmala), others are usual public access electricity sockets2, which in conformity with the draft EU directive on alternative fuel infrastructure do not comply with the requirements of EV charging stations3.

4.4.3 EV in Latvia

According to RTSD data as of 1 October 2014 there were 66 EV in Latvia, of which 63 were BEV and 3 PHEV that was for 11 BEV more than in the beginning of the year.

Vehicle type

Battery EV

PHEV

01.01.2013

18.10.2013

01.01.2013

18.10.2013

Buss

0

0

0

0

Motorcycle, tricycle

0

0

0

0

Truck

2

2

0

0

Quadricycle

20

22

0

0

Moped

18

21

0

0

Passenger

10

13

1

3

TOTAL

51

63

1

3

Table 3: Number of EV in Latvia according to RTSD data

4.4.4 Electromobility industry in Latvia

In this Table research and manufacturing undertakings of Latvia operating in the field of electromobility are indicated. Now in Latvia there is not unified record of participants to the electromobility industry, therefore it is probable that all undertakings of this field are not recorded.

Undertaking

Field of activity

JSC "Amo Plant"

Manufacture of buses.
Development of manufacture of electric buses has been commenced

"eO" LTD.

Development of electric vehicle
Development of inverters for electric vehicles and control systems for engines has been commenced
Development of battery management system (BMS) for electric vehicles has been commenced.

"Eltus" LTD.

Manufacture of charging equipment for electric vehicles.

"RS Factor" LTD.

Development of electronics equipment
Development of wireless charging system for electric buses has been commenced

JSC "Rīgas elektromašīnbūves rūpnīca"

Designing and manufacture of electric trains, passenger coaches and electric truck equipment.

5 Objectives of Electromobility Development Plan and tasks for the achievement thereof

5.1 Objective of the electromobility plan of Latvia:

The objectives of the Electromobility Development Plant of Latvia are closely related to the priorities laid down in NDP2020, and also European Position Paper on Development of Partnership Agreement and Action Programmes for Planning Period 2014-2020.

The objective of electromobility of Latvia, as the objective of sub-sector of transport, is closely related to the transport policy objective down in the Transport Development Guidelines - competitive, sustainable, comodal transport system which ensures high quality mobility, by efficient use of resources, including EU funds.

On the basis of the common transport policy of the European Union, in which it is provided for that transport should consume less and purer energy, use of modern infrastructure should be preferred and own negative environmental impact should be reduced, the objective of the Electromobility Plan of Latvia is to reduce the dependence of the transport system of Latvia on oil, improving its efficiency, ensuring mobility and promoting creation and use of innovative technologies in the transport field of Latvia.

According to the NDP priorities three main results should be achieved by the Electromobility Plan of Latvia:

• Increase of competitiveness of Latvian enterprises for the creation of a new industry.

• Increase of energy independence of Latvia;

• Reduction of pollution and gases causing greenhouse effect;

5.1.1 Increase of competitiveness of Latvian enterprises in the field of electromobility

Increase of competitiveness of Latvian enterprises shall be the main result of the Electromobility Plan, because by increasing competitiveness of enterprises new income will be obtained which will recover the investments made in the electromobility and allow to use the resources obtained for further raising of national welfare.

Electromobility is beginning of new industry in the world. In accordance with International Energy Agency data, it is foreseeable that until 2050 internal combustion vehicles will be gradually replaced by new technologies: EV: in the beginning HEV and PHEV, later BEV and fuel cell vehicles4.

Figure 40: Forecasts for vehicle technology development until 20505 Source: International Energy Agency

H2 degvielas šūnu auto

H2 fuel cell vehicle

BEV

BEV

PHEV

PHEV

HEV

HEV

Saspiesta dabas gāze / sašķidrinātā dabas gāze

Compressed natural gas / liquefied natural gas

Dīzeļdegvielas auto

Diesel car

Benzīndegvielas auto

Petrol fuel car

Transportlīdzekļa pārdošanas apjomi (miljoni)

Vehicle sales volume (millions)

The industry of vehicles with internal combustion engines has solidified its positions during the last hundred years, and it is almost impossible for new enterprises to enter it. In its turn expressed competition is not yet observed in the production of electric vehicles and there are vehicle assemblies having just one or several suppliers in the world6. It creates new possibilities for undertakings to enter into the industry, which will substitute the internal combustion vehicle industry within the nearest thirty years.

Being aware of that, now the countries around the world take active measures for supporting entrepreneurship in order to become the leading countries in this emerging industry.

It is particularly important to promote the competitiveness of enterprises of Latvia, taking into account that Latvia holds the 25th position7 in the field of innovations in Europe, by overtaking only Bulgaria and Rumania and innovations are the cornerstone of future competitiveness.

Therefore the State must primary provide support directed towards increase of competitiveness and co-operations between entrepreneurs and scientists in creating new, exportable products and promotion of direct investments in the sector of electromobility, in order other results intended in the Plan (increase of energy independence of Latvia and reduction of gases causing pollution and greenhouse effect) could be reached by production developed and manufactured in Latvia.

5.1.2 Increase of energy independence of Latvia

Energy independence is mentioned as one of the main indicators for achievement of NDP2020 objectives in the priority "National economy growth", in the action direction "Energy efficiency and energy production", that inter alia intends increase of proportion of local renewable energy resources in total consumed amount8

Europe depends very much on oil import in the field of mobility and transport: In 2010 in the transport sector, which with 55 % is the largest oil consumer, oil formed 94% of the consumed energy and 84% of this oil amount was imported. Energy dependence in Latvia9 is even larger than on average in Europe. Although within the last 20 years Latvia has become more independent in terms of energy (the total amount of imported energy has decreased from 88.9% in 1990 to 59.1% in 201110), it is provided for in the NDP2020 to increase energy independence of Latvia from 41.6% in 2010 up to 44.1% in 202011.

Energy independence of Latvia in the field of transport is higher than in national economy at large. 97% of energy used in transport of Latvia is fossil energy, and it is being imported for 100%. Every year Latvia imports fossil fuel for ensuring transport in the amount of more than half billion of lats, thus creating an external trade deficit in the amount of 6.5%12

In quantity terms consumption of fossil fuel in Latvia exceeds 1.1 million tons per year of which petrol and diesel fuel - 0.9 million tons:

Fuel type

2008

2009

2010

2011

2012

Petrol (thous. t)

378.7

322.8

288.6

277.2

227.0

Diesel fuel (thous. t)

808.0

644.4

639.0

643.1

675.7

In total (thous. t)

1 186.7

967.1

927.6

920.2

902.6

Table 4: Consumption of petrol and diesel fuel in Latvia13

Taking into account the retail prices of 2013 it amounts up to more than one billion LVL (1.42 billion EUR), which inhabitants of Latvia have paid for imported fossil fuel, moreover, Latvia cannot influence the prices of imported fuel, therefore, economy of Latvia is completely dependent on oil exporting countries in the field of strategic resources.

In order, by reducing dependence on fossil energy, the dependence on other type of imported energy would not be increased, a mechanism, which intends to increase the amount of local renewable energy production in proportion to each sold EV, is established in many countries, thus actually ensuring the use of local green energy in electromobility. It will be necessary to develop and introduce similar mechanism also in Latvia.

5.1.3 Reduction of pollution

Action direction "High productivity and exportable manufacturing and services with international competitiveness" of the NDP2020 intends not to exceed the amount of pollution and green-house effect gases getting in the environment ensuring a long-term development (by reducing emission of polluting substances caused by energy, industry, transport, agriculture, fishery and household and amount of created waste)14

At large progress has been achieved in Latvia in relation to CO2 emissions during the last years. The most significant amount of CO2 emissions is in Riga. The total amount of CO2 emissions has decreased in Riga by 50% in comparison to 1990 - from 4.2 to 2.3 million of tonnes of CO215, however, it is apparent that emissions from transport have increased and reached 37% from the total amount of CO2 emissions, becoming the largest source of emissions with 860 000 tonnes of CO2.

One of the ways of reducing the amount of CO2 emissions in transport is the development of electromobility, using renewable energy resources. The NDP2020 provides for the creation of support programmes for transition to renewable energy resources in the transport sector and for the provision of the necessary infrastructure, and also supporting innovations as a result of which use of economically advantageous alternative energy resources is being promoted16.

In total for the present moment in Latvia the proportion of renewable energy in terms of the total consumed electricity is comparatively high - as a result of the proportion of electricity produced from renewable energy resources in gross electricity consumption (in 2012 - 4109 GWh or 52.3%), because mainly electricity is produced in large HPP (in 2012 - 3707 GWh), Latvia takes the third place after Norway and Sweden with 32.6%17 of renewable energy in total energy consumption.

However in the field of transport in 2011 the proportion of renewable energy in transport was only 3.2%, but in 2012 - 3.1%, and Latvia is considerably behind the laid down objective - 10%18 and a little bit from the average level in Europe, which in 2010 was 4.7%19, but in 2011 - 3.8%.

In accordance with Part A of Annex I to Directive 2009/28/EC, the objective of Latvia is to increase the use of APP from 32.6% in 2005 to 40% in 2020 of GFCE. Total amount used from APP will reach in 2020 (1918 ktoe).

Objectives of Latvia in the field of APP until 2020 and for further period:

1) until 2020 to increase proportion of renewable energy in the total gross final consumption of energy at least up to 40% and to increase it gradually;

2) until 2020 the proportion of renewable energy in the transport sector must reach at least 10% of gross final consumption of energy in transport and to increase it gradually.20

If direct support measures have been carried out in other areas for increase of energy efficiency and reduction of CO2 emissions, then no other support measures, other than tax reliefs for purchase and use of EV, have not been carried out.

Passenger transport causes the largest pollution in the field of transport - 73% from the total amount. It is explained by increase of the number of vehicles that is only partly compensated by increase of vehicle efficiency in this time period. Now in Latvia is high amount of CO2 emissions 176.9 g per kilometre, that is influenced by the fact that cars are outdated in Latvia and inhabitants of Latvia prefer vehicles with engines of large capacity21: in 2011 off-road cars were 35.2 % of all cars, the proportion of small class cars has reduced from 13.6% in 2007 up to 8.3 % in 2011, compact class has reduced from 24.2 % up to 24.1 % in 2011. 22

As a result of introduction of electromobility the use of renewable energy in transport may be increased, and pollution reduced, by replacing polluting internal combustion engine vehicles with EV.

5.2 Task of the Electromobility Development Plan

The general plan of the Electromobility Development Plan is to provide the necessary description of measures for achievement of electromobility objectives and to determine short-term measures to be performed.

In order to reach the laid down objective, it is necessary:

• to determine organisation structure of the market model in Latvia;

• to determine systematic and organisations structure of charging infrastructure in Latvia;

• to determine support policy directions of electromobility;

• to develop action plan for each direction of introduction of support policy;

• to develop electromobility financing sources and procedures;

• to develop implementation, supervision and assessment processes of the Electromobility Development Plan.

5.3 Vision regarding probable development of electromobility in Latvia

Latvia has started introduction of electromobility comparatively later than other European Union Member State, however it has provided an advantage to create good foundation until 2016 for the best system in Europe, basing on experience and examples of other countries.

In 2016 in Latvia electromobility is a growing transport sub-sector of Latvia which is implemented by the Electromobility Management and Co-ordination institution of Latvia. More than 700 EV are already on the roads of Latvia and their number is constantly increasing - approximately 2.5% of all sold new vehicles are EV. EV are purchased in the State sector that allows the State to reduce budget expenditure for the use of vehicles. Latvia has entered into co-operation memoranda with manufacturers of EV that allows it to receive the newest models concurrently with the largest countries of the world, thus ensuring a wide range of available EV.

The main reasons why users are buying EV are the convenient use thereof, because EV are powerful, quiet, environmentally friendly and cost cheaper than internal combustion engines, moreover in Latvia, as well as in the most of European countries, they can be used also by driving on the public transport lanes and parked in the towns free of charge.

In Latvia, upon implementing of a co-operation programme with the entrepreneurs by the State, coverage of basic infrastructure for EV charging has been established - 235 public fast recharging stations in the entire territory of Latvia, that allows to use EV without worrying about the next possible charging. EV instrument cluster allows to ascertain quickly regarding the nearest free charging stations and make a reservation there. The same can be also done from smart phones which inform regarding charging progress and provide different additional possibilities. Programmes have been developed in order charging stations could also be installed next to all public buildings and transport assemblies, and also they are intended in all largest newly-erected objects.

Also foreigners start to visit Latvia with EV, because it is possible to use EV in Latvia as easy as mobile phones, by using their current cards or mobile applications. Latvian EV website and mobile applications provide all the necessary information and the national charging network is suitable for viewing of the main tourism objects of Latvia. EV applications which will also provide other additional possibilities are being developed, for example, they will allow to book electrical bicycles at the tourism information centres, thus allowing to enjoy Latvia completely without CO2 pollution.

Undertakings of Latvia are active in the field of EV and have been successful not only in the local market. Bus manufacturer of Jelgava JSC "Amo Plant" manufacture electric buses with wireless charging for the whole Europe. The State support and pilot projects have aided to develop their business - everybody, who arrives in Latvia with an airplane, goes to Riga or Jurmala with a new Amo Plant electric buses that was one of the first electromobility pilot projects in Latvia. In its turn "eO" Ltd., by using the develop battery and electric drive management systems, has won in widely known competitions with EV, proving performance of their technologies, and "eO" Ltd. has become one of leading suppliers of electrical systems in the sector of power vehicle market.

In addition to these undertakings a range of new, perspective undertakings have emerged, which in co-operation with the Electromobility Competence Centre and scientists of Latvia have developed, products and technologies on demand in the world, and they are producing and exporting them and paying taxes for the development of the national economy of Latvia.

Latvia has become a member of the world's main electromobility organisations and leading projects, that allow to be among leaders in this sector. The Electromobility Management and co-ordination institution has been recognised as one of more qualified organisations in the world, and, similar as ESB Cars of Ireland, provides consultations to governments of other countries regarding introduction of electromobility.

Latvia also considers next measures, that would allow to retain the place among the most developed countries in the world - the most progressive cities of Latvia have announced that starting from 2030 their centres will be areas free of emissions where only non-emission vehicles could drive in. It is planned that public transport in the cities will be free from emissions starting from 2030.

5.4 Indicators to be achieved by the Electromobility Development Plan

Indicators to be achieved by the electromobility characterise the necessary data for the regular assessment of plan introduction and impact thereof. They help to decision-makers and the society to keep track of the achievement of the electromobility objectives. All selected indicators are measurable, with maximum concentration, mutually related and subordinated, and also characterises in details the level of implementation of the objective.

The progress of the electromobility development is characterised by the following groups of indicators:

• transport indicators;

• energy indicators;

• environment pollution indicators;

• national economy indicators;

• entrepreneurship development indicators.

5.4.1 Transport indicators

Transport indicators characterises how widely electromobility is used in the national economy.

The following indicators are characteristic to this group:

• the number of purchase EV (per year, cumulative, % of all vehicles);

• the number kilometres driven (on average per vehicle per year, in total all EV per year).

5.4.2 Energy indicators

Energy indicators characterises how electromobility impacts the energetic balance and energy independence of Latvia

The following indicators are characteristic to this group:

• the amount of consumed electricity (on average per EV per year);

• reduced amount of fossil fuel (on average per vehicle per year, % of total amount of fossil fuel);

• Reduced energy dependence, because local produced electricity is used (the amount of imported energy/total consumed amount of energy, %)

5.4.3 Environmental pollution indicators

Environmental pollution indicators characterises how electromobility improves environmental indicators of Latvia

The following indicators are characteristic to this group:

• reduction of CO2 emissions (on average per vehicle per year in total, reduction % of all amount of vehicle emissions);

• Reduction of NOx emissions (on average per vehicle per year in total);

5.4.4 National economy indicators

Indicators of this group characterises how electromobility improves environmental indicators of Latvia.

The following indicators are characteristic to this group:

• Consumption of local produced electricity (on average per vehicle per year in total);

• Reduced amount of import of fossil fuel (on average per vehicle per year, % of total import of fossil fuel, improvement of external trade balance).

5.4.5 Entrepreneurship development indicators

Indicators of this group characterises how electromobility improves entrepreneurship environment of Latvia and results achieved thereby.

The following indicators are characteristic to this group:

• New undertakings in the sector of electromobility;

• New products developed in the sector of electromobility;

• Pilot projects implemented in the sector of electromobility;

• New workplaces created in the sector of electromobility;

• Produced gross product in the sector of electromobility.

5.4.6 Methodology for calculation of indicatorsto be achieved by the development plan and forecasts:

In 2010 the amount of CO2 emissions of Latvia from the transport sector was 3220 thousand tons CO223, including from land transport - 2879.95 thousand tons of which passenger cars 1456.65 thousand tons24.

In 2012 in Latvia the total number of cars and trucks, and also buses, in technical order was 591625 vehicles, of which 524445 passenger vehicles. Average mileage of passenger cars was 15701 kilometres per year25. Average reduction in annual mileage was 0.5% per year during the last two years of which foreseeable average mileage of passenger vehicles is extrapolated in 2022 as 14267 km.

Based on the abovementioned data in 2010 average amount of emissions of passenger cars of Latvia was 178.7 g/km, that are extrapolated by reduction of 0.5% per year, that is the average indicator of the last 6 years, the average amount of emissions of passenger vehicles may be forecasted as 174.25 g/km in 2016 or average passenger vehicle fuel consumption 7.53 l/100 km.

In 2016 the intended number of EV in Latvia is 747 pieces (or 2.5% of annual amount of new vehicles26).

On the basis of intended number of EV and intended average mileage of vehicles in Latvia in 2016, saving of 1.98 thousand tons CO2 is obtained, or 0.1% of total amount of CO2 emissions in the transport sector.

As well as in 2016 the intended total number of kilometres driven with electricity 11.35 million kilometres, that at the average forecasted fuel consumption will provide reduction of 0.85 million litres of fossil imported fuel for the country and replacement with local produced green electricity.

Table 5: Forecasts of indicators to be achieved until 2016

Indicators

 

Number of purchased vehicles per year

 
 

Number of new vehicles

 

New vehicles of all %

 

of which: EV

 

EV (%) of new V

Cumulatively

EV (pieces)

 

passenger cars (TK pieces)

 

EV (%)

Number of km driven with electricity

 
 

average mileage (km/per year)

 

Total (mill. km)

Internal combustion engine:

Fuel consumption (l/100 km)

 

Fuel economy (mill. l)

CO emissions

CO2 capacity (g CO2/km)

 

CO2 capacity (t CO2/V per year

 

CO2 saving from EV (thous. t)

 

Total CO2 emissions (thous. t)

 

CO2 saving from EV (thous. t)

6 Challenges for the establishment of electromobility market within the context of Latvia

In order to achieve successful entry of EV in the automobile market and strengthening of the positions thereof, comparing to cars with internal combustion engines, elimination of several obstacles or reduction of their negative influence shall be achieved. Electromobility, being one of factors to be taken into account in the reduction of CO2, achieving of energy independence and introduction of more efficient mobility, due to different mainly technological obstacles, and also obstacles of other type, the process of introduction of electromobility is not going so rapidly as it would be desired by the participants of this new industry.

The abovementioned primary obstacles are as follows:

• EV technological properties and purchase price;

• Construction of infrastructure (charging stations) network;

• Habits of consumers;

• Presence of competitive vehicle technologies and parallel development thereof.

6.1 Purchase price of EV

Average purchase price of EV is for 20-30% higher than for analogues of internal combustion engines. Consumers are not ready to pay such difference in price for a technology. The main reason for EV price is its accumulators, the costs of which fluctuate from 500 - 800 USD dollars per KWh.27 Thus 20 KW large accumulators make costs for ~ 10 000 - 16 000 USD dollars. In order to reduce EV price, participants of electromobility industry must ensure lower costs for accumulators from which the purchase price and competitiveness EV depend on.

The trends of the last years shows that EV prices reduce for 10-15% per year on average which means that the purchase price could discontinue to be challenge during the next five years.

6.2 Technological properties of EV

6.2.1 Limited mileage after one recharging

In conformity with actual data, EV can drive 80 - 150 km on average after full charge28. Although consumers in Europe drive less than 10 km in 50% of all journeys on average and in 80% of cases less than 25 km29, the limited mileage from one charging is the main reason why wide and generally available charging infrastructure is necessary in order EV could be used completely.

6.2.2 Comparatively long EV battery charging duration

Now in the market on average EV with accumulator capacity around 20 kW the charging is possible within 30 minutes by using 50 kWh direct current fast recharging devices, however it may reach up to 12 hours, by charging from usual household electric plug. Charging time depends also on the charge level of the battery and charging technology used. Comparing to BEV, for example, Nissan Leaf, Opel Ampera (PHEV) can be charged faster on average, because it is equipped with lower capacity battery.

In order to eliminate recharging duration challenges, now it is intended in the EU alternative fuel infrastructure directive to introduce wide Type 2 fast recharging station network in the entire Europe, thus ensuring wide possibilities for fast recharging and complete use of EV.

6.2.3 Service life of accumulator

Operation lifetime of the accumulator is additional challenge, that is still unknown factor for the present moment, and therefore it is a psychological challenge for the development of electromobility market. Now the availability of data regarding service life of accumulators is limited. In addition, it is rather hard to determine precise service life of the accumulator, because it is affected by different factors, for example, total mileage of EV and environment. EV accumulator loses its sustainability faster if it is charged at the fast recharging station. Also high or expressly low temperature considerably reduces the service life of the accumulator.

EV producers as Nissan and Renault provide the guarantee for service life of the accumulator for 5 years or 100 000 km. In order to prevent doubts of consumers regarding service life of accumulators, Renault and starting from this year also Nissan, have started to rent accumulators, by undertaking all the risk by themselves and guaranteeing safe operation of accumulators during the all service life of automobiles.

6.3 Construction of infrastructure (recharging station) network

Development of charging station network is essential factor for the development of electromobility, however enlargement of this network is relatively slow. Recharging points which may be arranged in a private house are comparatively cheap (around 950 EUR30on average), however installation of fast recharging station requires much more greater initial investments.

Wide network of recharging stations is necessary in order to prevent in EV users so called "range anxiety" or afraid of an electromobility user that a vehicle cannot reach a destination with the remaining battery charge. "Range anxiety" causes a serious risk to the development of electromobility industry and in this case to the co-operation of the State and representatives of the industry; an efficient way must be introduced to distribute information regarding geographical location of the recharging stations and availability thereof.

Compatibility of recharging stations among countries is a significant EV distribution factor regarding which the representatives of the industry and the State must find efficient solutions.

6.4 Informing of consumers, habits and support of EV technology

Consumers play the main role in the development of electromobility that generates a successful introduction of electromobility market and reaching of saving caused by volume. The wishes and needs of consumers must match with the offer of EV technologies in order to reach the indicators of mass introduction of electromobility. Comparatively small mileage after one recharging, long EV recharging time and "range anxiety", higher purchase price, and also the required change of use habits of automobiles and adjusting to a new technology refrain the largest part of consumer to purchase EV. At the same time, there is a correlation between the informing level regarding benefits from EV and probability of purchase by a consumer and readiness to pay higher purchase price, by acquiring lower exploitation costs. Communication and publicity measures turned towards educating of consumers in terms of benefits provided by electromobility is essential factor for promotion of electromobility introduction.

6.5 Presence of competitive vehicle technologies and parallel development thereof

Presence of other cars (cars operated by hydrogen, natural gas, biofuel), and also increase of efficiency of internal combustion engine within a medium-term and parallel development of these technologies with EV cause certain competition to electromobility. Now it is intended that hydrogen operated cars will reach mass market only after 203531. The main factors preventing introduction of hydrogen vehicles are costs of hydrogen filling station that reaches 1 million USA dollars, and also production cost of a hydrogen car reaches 100 000 USD dollars32.

6.6 SWPR33 analysis in respect of introduction of electromobility in Latvia

Strong sides:

Environmentally friendly electricity: 41.9% of the consumed electricity in Latvia is produced from renewable resources34, thus there is low amount of specific CO2 emissions - considerably lower than average EU indicators. These favourable conditions allows for Latvia to reach faster a certain CO2 emission level in the nearest future thanks to introduction of electromobility and integration in Latvia. EV will promote greater use of renewable resources in the manufacture of electricity, thus potential for CO2 reduction is significantly greater than at the use of fossil fuels for the production of electricity.

Small country - comparatively small distances: this fact makes Latvia as a suitable country for introduction of electromobility technology. In Latvia people drive up to 50 km per day on average in Latvia, while average mileage capacity of electric vehicle is 80 - 150 km depending on driving style and weather conditions.

European Union support policy: European Commission directive allows to stimulate electromobility market, concurrently giving a positive signal to industry representatives - investors, and also creating initiatives among more conservative governments of the Member States to develop new and perspective mobility direction.

Lower exploitation costs of EV: EV consists of less number moving parts than the cars of internal combustion engine. High fuel prices make EV more cheaper means of transport, especially in cities, where fuel is consumed in the greatest amount. At a fuel price 1 LVL per one litre and taken that a car consumes 8.1 l/100km35on average in Latvia, 1 km costs 8.1 santims. While at the 22 kWh battery and electricity tariff 10 santims per kWh, 1 km costs around 2 santims. At the monthly mileage 1500 km, EV costs will reach 30 lats, comparing to 121.50 lats with internal combustion engine.

Weak sides:

• Non-informing of consumers in respect of benefits provided by the electromobility and conservative attitude towards electromobility (reserved attitude towards positive aspects provided to users of EV).

• In the Electromobility Plan it is intended to prevent it in Activity 2.4 "Ensuring of information availability, establishment of electromobility website" and in Activity 2.5 "Organisation of electromobility measures in co-operation with associations of the sector".

• Comparatively high sales price of EV.

This lack of EV for the time being is trying to be rectified by manufacturers by developing new technologies which would allow to reduce the price for EV and also activities have been intended in the Plan in the 4th direction: stimulation of EV purchase which will provide direct financial aid for purchase of EV and indirect aid by reducing taxes for EV, and also providing conveniences for use, for example, by allowing to use EV in lanes of public transport. At the same time it is also intended to reduce difference in prices by increasing tax amount for the vehicle categories with the most polluting internal combustion engines.

• Large initial investments are necessary in order to establish infrastructure station network and operator;

In order to reduce the necessity for investments from the State budget, a range of support programmes in the measures of the 3rd support direction is intended: establishment of EV charging network which intends to attract resources of EU funds (Activity 3.1 "Establishment of the national EV charging network") for the establishment of infrastructure and to co-operate with local governments and undertakings (Activities 3.3, 3.4, and 3.5).

• Non-existence of technical framework.

• Comparatively small EV market and law purchasing capacity: due to unattractive market it is more difficult to attract the amount of investments necessary for the establishment of infrastructure, because the time period for return of investments is longer.

It is intended to minimize this disadvantage by measures of 1st support direction: support for science and entrepreneurship development in the sector of electromobility which includes support for the development of new EV products and access to newest technologies in exhibitions and international organisations.

• Climate features: in winter due to low temperature EV batteries discharge even faster, thus reducing the total possible mileage after one recharging.

This problem is actively solved by EV manufacturers - the newest generation EV are equipped with special winter equipment - battery heating, alternative heating systems, smart technologies, which, for example, warm up a car before driving whilst it is connected to electricity network in order not to use the battery, etc.

Possibilities:

• To establish a potential to take leading positions also in the European market: by investing in a new, rapidly growing transport industry with a purpose to become one of the significant in Europe in this sector, by developing, manufacturing and exporting components necessary for ensuring of electromobility, by creating new workplaces in the field of high technologies.

• To develop innovative electromobility products and solutions by supporting pilot projects of Latvian technologies in order to help to get to mass production and to increase export and competitiveness of undertakings of Latvia;

• To reduce dependence on oil import;

• To reduce negative impact of transport in environment, by reducing amount of CO2 emissions;

• To develop innovative business models in the field of renewable energy resources;

• To increase export and competitiveness of undertakings of Latvia in the field of innovations;

• To increase proportion of renewable energy resources in the manufacturing of electricity, especially wind and sun energy, thus reducing harmful emissions in the atmosphere;

• To reduce environmental noise pollution;

• National and international co-operation possibilities of several sectors;

• Introduction of EV in the State car parks will generate interest and conviction of consumers regarding technological maturity and suitability for use of EV, by causing desire to purchase them.

Threats:

• Economic crisis and political non-stability may redirect focus from development of electromobility, by postponing it for indefinite period of time;

• Upon commencement of implementation of electromobility measures without existence of appropriate legislation and technical framework, chaos will be created in the field of charging stations, that will lead to incompatibility of stations with different payment system, causing inconvenient use of charging stations from the part of a customer that in its turn could significantly delay development of electromobility;

• Introduction of significant EV manufacturer (for example, Renault) in the market of Latvia may significantly delayed due to lack of development of the laid down electromobility level of Latvia - unattractive market that in its turn will negatively affect development of electromobility market in general. Limited range of offer of EV models will not promote the growth of the number of EV on the roads, not being able to satisfy needs and preferences of the wider range of consumers;

• Upon decrease in difference in price between petrol and electricity, added value of electromobility reduces compared to internal combustion engines, by reducing total costs of cars with internal combustion engine;

• Financial amount of electromobility support policy must be adequate in order to reach defined objectives. Due to non-adequate financing electromobility may develop significantly slower than elsewhere in Europe and world;

• Due to non-coordinated and non-united activities by different necessary electromobility parties, the development of electromobility will take place non-efficiently and slowly;

Development and improvement of other car technologies (gas, hydrogen fuel car, further optimisation of internal combustion engines).

7.2 Organisational model of electromobility

7.2.1 Determining factors for selection of model

Proposal for a Directive of the European Commission on the deployment of alternative fuels infrastructure lays down the requirements for drawing up State political regulation in relation to the development of alternative fuels market and the development of the minimum of an alternative fuels infrastructure, also introduction of joint technical specifications. But the Member States keep the choice of the transposition methods to achieve the objectives set out, by using the instruments they consider most cost-efficient36.

The proposal for a Directive intends several aspects to be taken into account when developing electromobility market model of Latvia as EU Member State:

Freedom of access for a consumer: market model shall ensure, that equipment of slow and fast recharging points is available under fair, commensurate and equal conditions, does not include additional charge or excessively high fee for a user who is recharging a vehicle without contractual relations with the recharging point operator;

Free choice of energy supplier: market model shall not prohibit EV users to purchase electricity from one supplier of electricity regardless of the Member State of registration of the supplier. The model shall ensure that consumers have the right to purchase electricity on the basis of agreement concurrently from different suppliers in order to make possible to enter into a separate agreement on ensuring of electricity for an electrical vehicle;

Opened market of recharging points: market model shall ensure that any person may establish or manage publicly available recharging points and that electricity supply operators co-operate with such persons, by taking into account the principle of equal treatment;

Harmonisation with other EU states: market model intends continuity of cross-border coverage of infrastructure and mechanisms for co-operation with other Member State for the ensuring thereof.

Be selecting the most acceptable market model in Latvia, several conditions shall be taken into account, in addition to that laid down in the Directive on alternative fuels infrastructure.

Geographical coverage

Market model of Latvia shall ensure the possibilities for EV use in the entire territory of Latvia, including regions where number of EV could be small. For the time being the experience shows that establishment of the fast recharging network of national significance will give return to commercial entrepreneurs within a long-term even at the place, where the number of EV is sufficient37. However EV fast recharging stations are necessary even at the places where there are a wide network of local recharging stations, because fast recharging stations serve also as psychological guarantee for the use of EV. For the time being the market of new vehicles is small and until 2020 the expected amount of EV could reach 4500 vehicles, on a condition that State support will be provided for the purchase thereof; moreover EV will be placed non-evenly in terms of geography, mostly in the most developed regions of the country. Thus the number of vehicles in Latvia will be significantly too small in order for the electromobility infrastructure could be self-financed in the entire territory of Latvia and co-financing will be necessary for at least a part of the infrastructure during these years.

Desirable sources of financing

Unlike social awareness increase and environmental protection support processes in the society of "green energy" developed countries, where inhabitants are ready to pay more for services and products which is manufactured by using renewable resources38, in Latvia as a result of campaigns against green energy39, and also pretty often information provided tendentiously regarding rise in price of mandatory procurement component energy40, state of mind of the Latvian society against use of any type of renewable resources and "green" measures is not unequivocal - 89% of the inhabitants of Latvia considers that action by the government is necessary in order to restrict the rise of electricity prices, that may be caused by increase in mandatory procurement component (MPC) or subsidised energy payments41, although the objectivity of this research is doubted42.

Thus by choosing market model, priority shall be given to the financing that is not related to direct budget payments by attracting financing of the European Union structural funds as possible, and also private financing, probably on the PPP base.

7.2.2 Most appropriate market model in Latvia

Market basic models are distinguished depending on integration of three managers of the chain of electromobility infrastructure values (operators of electricity supply, recharging stations and electricity trade).

Electricity supply is carried out by the electricity supply operators (ESO), in the case of Latvia by the JSC "Sadales tīkls", which owns and manages low-voltage and medium-voltage electrical transmission networks that are used in order to supply energy to recharging stations. Now depending on the possibilities of other managers of the chain of value, classic-scientific literature distinguishes three main electromobility market models: integrated infrastructure model, divided infrastructure model and independent electromobility market model. Main features thereof are as follows:

• Integrated infrastructure model intends that Electric supplier (e.g. JSC "Sadales tīkls" in Latvia) is also operator which installs and manages recharging stations. They are included in the total electricity network infrastructure and are "public benefit": i.e. infrastructure construction costs are included in the general electricity price which is paid by all electricity consumers - price range for recharging of EV is from 0 up to standard electricity price which is paid by every user of electricity;

• Divided infrastructure model intends that recharging infrastructure operator (operator) operates as independent and separate market sector. Electricity trade is separated as a separate electromobility function and costs are covered according to the principle "user pays" - i.e. infrastructure construction costs are included in the electricity price only for EV users. In this model, users are ensured with possibilities to carry out recharging at any operator and operators, similar as operators of fuel refilling stations or mobile phones, compete among each other with price and additional services.

• An electricity seller in independent electromobility market model establishes his or her own EV recharging station in which he or she himself or herself determined sales price and payment type. At each point they may be different and recharging stations are not related in a united network.

* Electricity supply → Recharging station → Electricity trade

On the basis of market model analysis and requirements for the market model in Latvia, it may be concluded that none of these models cannot be used in unchanged form, and under conditions of Latvia it is beneficial to establish a model which has several features of abovementioned models.

The following table shows the planned electromobility market model of Latvia:

Property rights to infrastructure

Financing of electricity and recharging stations

Relations with a customer - EV user

In conformity with the draft Directive of EU alternative fuels directive43, everybody may construct a recharging station in conformity with technical regulations.
Owner may service recharging station by himself or herself, or enter into agreement with a licensed operator in order for a station to be included in the recharging infrastructure network.

Financing according to the "user pays" principle.
Subsidies of electricity to be used for EV recharging shall not be directly related to electricity rates for all users.
Amortisation costs of recharging stations are included in the final rate of a user.
Operators of recharging stations shall co-operate with electricity suppliers and electricity sellers and EMCI.
Financing of recharging stations and operators may be carried out in co-operation with commercial companies within the support programmes in order to reduce the required State investments.

EV users shall co-operate with operators un free market conditions and enter into agreements regarding use of recharging stations in conformity with rate models offered by operators or by paying on site, regardless of the owner of the recharging station.

Table No. 7: Most appropriate market model in Latvia

Positive and negative features of such model are shown in the following table:

Positive

Negative

• Financing according to the "user pays" principle, a service is more fair towards other electricity consumers, because actual users pay for it not all electricity consumers;

• EV recharging station network of national significance is established for the electromobility support;

• Any person may establish public EV recharging station as electricity distribution network connection service according to equal treatment principle and enter into agreement with operator in a free market;

• Possibilities to finance establishment of recharging station networks from the funds of local governments or commercial companies.

• Development of governing legislation framework is necessary;

• Technically complicated development of the system, development and introduction of unified standards are necessary.

Table No. 8: Analyses of the market model of Latvia

One of the main market model functions is to determine market regulation degree. A general opinion is that the purpose of State regulations is to ensure clear and equal basic provisions for the functioning of market economy. Regulating introduction is permissible only in those cases when market is not capable to self-regulate, or it is necessary to rectify market deficiencies endangering fair market competition, for example, market dominances or natural monopoly situations44. Thus there are parts in the electromobility market model which are completely regulated and parts which do not require regulation.

The following table shows compilation of regulation level recommended for Latvia in different stages of electromobility:

Regulation level

Description of regulation level

Possible field of application in Latvia

Non-regulated market

Industry is not regulated and there are no standards determined, and results are completely determined by free market

Not recommended under conditions of Latvia. USA sample shows that in such case chaos sets in the market.

Self-regulated market

Industry uses own determined standards and they are responsible themselves for meeting them.

Not recommended under conditions of Latvia. The only market sample where the system functions successfully is the Netherlands (OCC sample).

Regulated sector framework

The State or authorised regulating institution has determined minimal standards in the legislation which are to be met by the participants of the industry

Under conditions of Latvia can be used in order to develop regulations regarding minimum requirements for the related industries: for example, number of recharging points in new construction projects, etc.

Full regulation

Detailed and binding standards have been determined which restricts industry. Usually is used in sectors of possible monopoly or in dangerous sectors.

Under conditions of Latvia ensuring of electromobility competition is necessary by preventing de facto monopoly of one manufacturer.

To be applied for ensuring of conformity with technical standards and implementation of electromobility support system in Latvia.

State provision

The State ensures a service or provide exclusive / licensed right to a service provider.

Under conditions of Latvia it is necessary for functions where only one market player is possible: for the establishment of electromobility management and co-ordination institutions and establishment of clearing centre.

Table No. 9: Recommended regulation level in different electromobility spheres.

7.3 Organisational model of electromobility

7.3.1 Organisational structure of electromobility in Latvia

Upon performance of research regarding organisational models of electromobility in Europe, it must be concluded - almost in each country it is a unique, however almost in all countries three organisational levels of electromobility may be distinguished.

Diagram No. 14: Organisational structure levels

Three level distribution is related to the fact that the in the most of the European countries indirect provision mechanism is used for the provision of support to electromobility - i.e. support recipient (EV user) does not receive money resources directly, but through intermediate organisation that provides discounts for EV purchase or subsidised services for EV use, including - tax discounts.

In the first level, there is one or several ministries which are responsible for electromobility in the country in general, regarding development of relevant strategy and planning documents. Countries, where electromobility is developed the most, have determined one responsible ministry45 (Great Britain, Ireland, Portugal, Estonia), several ministries are in the countries where there are not yet detailed electromobility introduction plans (for example, Lithuania).

Ministry responsible for electromobility, for example, in Great Britain and Denmark, is the Ministry of Transport, in Estonia and Portugal - the Ministry of Economics, in Ireland - the Ministry of Communication, Energy and Natural Resources.

In the second level, there is one or several responsible institutions which are responsible for policy introduction and supervision and distributions of support financing intended for development of electromobility. In some countries, for example Estonia, it is one organisation, but in Ireland, Portugal and the Netherlands - different.

In the third level, there are organisations implementing electromobility policy - which practically ensure operation of infrastructure network and ensures issuance of electromobility support financing due to final recipients (beneficiaries). On this level there is the most different organisational regulation in each country.

Upon having look at samples of European countries, it can be seen that the most efficient results are achieved in those countries where unified organisation has been established which is responsible for the introduction of electromobility in the national level.

7.3.2 Level I: Regulation

The Ministry of Transport is responsible for the development of electromobility in Latvia. Its functions include:

• To draw up electromobility policy;

• To organise and co-ordinate the implementation of electromobility policy;

• To draw up the respective draft legal acts and policy planning documents;

• Within the framework of competence thereof to represent the State interests in the European Union institutions or to authorise third persons to represent Latvia in the international projects, conferences, and also to represent State interests in the international electromobility organisations in order to acquire the most actual information regarding the development thereof in the world and necessary technical know-how for successful and economically efficient ensuring of introduction of electromobility in Latvia;

• To carry out or authorise third persons to carry out the necessary researches for the development of electromobility;

• To ensure or authorise third persons to ensure informative base in order to promote involvement of inhabitants and commercial companies of Latvia in wide use of EV on economic advantage basis.

However in certain activities electromobility is closely linked with the spheres of responsibility of the Ministry of Economics, Ministry of Education and Science and Ministry of Environment and Regional Development - especially in the 1st support direction: support for the development of science and entrepreneurship in the field of electromobility (for more detailed information see Section 8.4.1.).

7.3.3 Level II: Policy introductions

Electromobility Management and Co-ordination Institution of Latvia (EMCI) is responsible for the implementation of the developed policy in Latvia.

EMCI has the following functions in level II of the electromobility implementation:

1. To prepare and, in accordance with the procedures laid down in laws and regulations, to provide proposals for drawing up of governing legal acts and policy planning documents, also on the basis of experience acquired, to submit proposals to the Ministry of Transport for the necessary support programmes.

2. To ensure implementation of the measures provided for in the laws and regulations and the respective policy planning documents, including:

• To ensure the establishment of the national charging infrastructure of Latvia;

• To co-operate with local governments and commercial companies in introduction of the infrastructure, ensuring technical support software basis;

• To draw up technical standards of Latvia for electromobility according to the norms of standards and to ensure their introduction in order to achieve efficient compatibility of the charging systems installed in Latvia in a joint network;

• To perform the maintenance of the register for use of green energy certificates of EV.

7.3.4 Level II: Granting of financing

Electromobility concerns the fields of activity of the Ministry of Transport, the Ministry of Environmental Protection and Regional Development and the Ministry of Economics. In Latvia, similar as in the most part of the European countries, it is intended to use indirect financing granting mechanism - i.e. the financial institution and support recipient "do not meet" directly and support transaction is implemented in at least at one of the phases thereof through involvement of additional institution (intermediary organisation of level III). Such solution shall be regarded as optimal in the situations when support is issued to large and wide target groups46.

Granting of financing for the electromobility support will be carried out by the Ministry of Transport - within the framework of ERAF, the MoEPRD - within the framework of Climate Changes Financial Instrument (CCFI), the Ministry of Economics and the Ministry of Education and Science - within the framework of ERAF funds according to that laid down in the activity programme "Growth and employment".

The responsible institution shall carry out the granting of financing to final recipients for EV purchase through level III intermediary organisation: authorised EV dealers which receive money resources for the support amount of EV purchase, but EV users may purchase EV already with support without dealing with additional complicated formalities.

7.3.5 Level III: Implementation of the Electromobility Policy

5 main directions of activity are intended in the introduction of electromobility policy of Latvia - the following diagram shows distribution thereof according to implementing organisations (with blue - the Ministry of Transport, green - EMCI, red LEKC):

Diagram No. 15: Electromobility plan activities according to implementing institutions

7.3.5.1 Creation of EV charging infrastructure

Establishment of the infrastructure for recharging of electric vehicles is one of the most important tasks to be performed in order for the introduction of electromobility to be possible.

The basic functions in establishment of the EV recharging infrastructure in Latvia are as follows:

• To carry out construction of the Latvian national recharging stations and technical functioning thereof;

• To establish a clearing centre for the electric vehicle recharging infrastructure network and to carry out the functions of the clearing centre among recharging network operators of Latvia and other countries

• To supervise compatibility of management systems of operators with all recharging points to be installed in Latvia in order to guarantee the possibilities for any EV user to use EV recharging infrastructure (network) regardless of the operator used in both, Latvia and abroad:

○ when performing technical certification of public recharging points in order to ensure compatibility with national recharging network of Latvia;

○ when performing certification of independent EV recharging network operators in order to ensure compatibility with the Latvian national recharging network;

Public municipal networks and private networks established within the framework of State support programmes, network management operator must be certified in order to ensure that the system used by independent operator takes part in the joint national recharging network system of Latvia and conforms to the requirements laid down in the alternative fuels infrastructure directive47.

7.3.5.2 EV purchase support financing programme

In the support financing programme an intermediate institution of level III shall receive financial resources from the manager thereof (the ministry of Transport, MoEPRD, IDAL) and thereinafter ensures immediate granting of EV purchase discount to final support recipient - EV user. Intermediate institution of level III in Latvia will be EV dealers, the functions of which are to ensure examination of the applications by recipients (vehicle users), processing thereof and drawing up of statements for the institution of level II granting the financing.

7.3.5.3 Electromobility informing measures

The organisation authorised by the responsible ministry shall, within the framework of functions thereof, organise informing of the public regarding development of electromobility in Latvia, including regarding EV available in Latvia, support financing available for the purchase thereof, economic substantiation of electromobility, other support programmes, frequently asked questions, etc. This organisation either directly or in co-operation with public organisations of the sector will ensure maintenance of official electromobility website of Latvia, organise informative measures and other activities directed towards making interest for inhabitants to change to environmentally friendly vehicles. The responsible organisation shall intend the resources necessary for these activities from the State budget resources by using available European Union support financing instruments as possible

7.3.5.4 Support to science and development of innovative products, and highly innovative electromobility pilot projects

Research institutions in Latvia having experience in the implementation of research projects in the field of electromobility are Riga Technical University (Faculty of power and Electrical Engineering), Institute of Physical Energy, Institute of Solid State Physics, Energy Institute of the Latvia University of Agriculture, and also Institute of Transport and Communications.

Concurrently certain projects in the field of electromobility are implemented within the framework of the programme of EU structural funds "Competence centres" (2011-2015) developed by the Ministry of Economics and administered by the Investment and Development Agency of Latvia. Such projects are implemented at the competence centre for electrical and optical equipment manufacturing sector of Latvia "LEO research centre".

During a period of introduction of the Electromobility Development Plan performance of industrial researches and support for the development of new products and technologies may be intended, by attracting financing in the next planning period of EU funds (2014-2020), for example, the planned State support programmes "Competence centres", and also within the framework of other activities that intends promoting of co-operation of the research sector and merchants for the introduction of research elaborations in the market. It is significant to continue also the performance of the State ordered interdisciplinary scientific research, improvement of the State research centres and private sector infrastructure, and implementation of research projects of practical trend in scientific directions with national priority.

Main directions of innovations, research and technology development and planned actions are reflected also in the Guidelines of National Industrial Policy for 2014-2020 (approved by the Cabinet Order No. 282 of 28 June 2013, Regarding Guidelines of National Industrial Policy Development), and also in the Guidelines of Research, Technology Development and Innovation for 2014-2020 (approved by the Cabinet Order No. 685 of 28 December 2013, Regarding Guidelines of Science, Technology Development and Innovation for 2014-2020).

7.3.6 Electromobility Management and Co-ordination Institution (EMCI) model

Three possible models of EMCI models have been evaluated for comparison: two concentrated organisation models (non-profit-making organisation model and State agency model) and the third one - EMCI separated model, by separating the functions for the provision of electromobility technical performance and support financing. All these models are used in the European Union.

7.3.6.1 Non-profit-making public organisation model

The first evaluated EMCI model is a non-profit-making public organisation model which is implemented, for example, in Portugal. In such case the founders of the association are both, the State and non-governmental sector

In this model activities of all involved ministries is implemented through advisory council or through meeting of members, if the ministries is also between founders of the association. Such public organisation could operate under direct supervision of the Prime Minister similar as is organised in Portugal.

Unfortunately within the framework of the present legislation such model is not possible in Latvia. Sufficient number of cases are provided in the State Administration Structure Law, when the State administrative institutions may act in the field of private rights, and the right to establish associations and to operate in them is not given in this listing.

7.3.6.2 EMCI as agency of the Ministry of Transport

The second model is EMCI as agency of the Ministry of Transport. Such model is selected for example in Estonia, where electromobility is implemented by the agency Kredex.

Such model ensures greater influence by the State over the system and lesser influence by the market participants, however such model has deficiencies - the Ministry of Transport has no agency which could undertake such functions at the present moment therefore new agency must be established. It is probable that such agency could carry out supervision of the entire field of alternative fuels / non-emission transport and sector development, similar as it is done by Office of Low Emission Vehicles in the Great Britain.

Section 5, Paragraph one of the Public Agency Law sets out that the State agency provides paid services, by ensuring implementation of the State administration tasks in accordance with the pricelist approved by the Cabinet - such functions is not intended for EMCI, therefore such solution does not conform to the system of law of Latvia.

7.3.6.3 Divided function model

The third evaluated model was divided function model which provides for separation of the functions of introducing electromobility from support (awarding and control of grants) functions. Such model is used, for example in Ireland, where introduction of electromobility is implemented by ESB Cars, but grants are issued by Sustainable Energy Authority of Ireland.

In this model electromobility support functions, including grant administration, could be carried out by the existing State agency or the Ministry of Transport, but the functions of introduction of electromobility - by non-profit-making public organisation or State capital company.

7.3.6.4 Conclusions: Selected EMCI model

The most appropriate and most suitable for the system of law of Latvia is the divided function model because State authorities have experience and resources for the provision of support functions (grant administration and sectoral control), however, do not have specialists in the field of electromobility. Such specialists with experience in issues of electromobility are in public organisations (for example, Latvian Energy Efficiency Association, Green-tech Cluster of Latvia, Zero Emission Mobility Support Society), in turn, the SJSC "Road Traffic Safety Directorate" maintains and ensures the register of vehicles that contains information regarding all vehicles registered in traffic of Latvia, which would allow rapid and easy accounting, reducing administrative costs. SJSC "Road Traffic Safety Directorate" is ensured with data exchange with the relevant registers of other countries that makes easier establishment of clearing system.

Thus this plan intends to establish EMCI on the base of SJSC "Road Traffic Safety Directorate" as a division of RTSD, but electromobility support functions to ensure by the Ministry of Transport.

7.4 Public sector role

Establishment of wide electromobility market depends on co-operation of several interested parties. The public sector has a significant role of market catalyst. At the present moment in several world countries solutions are being developed and already been introduced for the abovementioned market development promotion challenges. Action directions available at the disposal of the public sector may be divided in several groups:

• development of public and private recharging infrastructure or systems, including by stimulating inclusion of EV infrastructure in new construction projects;

• subsidies, tax discounts (or support of other type) for the purchase of environmentally friendly vehicles;

• establishment of industrialisation and research and development action policies in relation to electromobility technologies, especially manufacture of batteries;

• inclusion of electromobility in the sustainable mobility programmes, including use of EV for ensuring of public transport;

• by providing a positive sample - by promoting the use of EV in State and local government institutions and undertakings and inclusion of EV infrastructure in public buildings and public objects.

Concurrently it must be admitted, that there are several types of incentives, which the countries may use in order to promote certain action of other related parties that would positively influence the development of electromobility market in general. Types of incentives may be related to:

research and development

○ on local level - to create incentives for research and development in certain fields of technologies;

○ on EU level - to attain relation with EU research and development incentive programmes (F97, Horizon 2020);

○ internationally (excluding EU) - co-operation agreement with other countries in relation to exchange of knowledge/technologies;

introduction (a part of these support/incentive mechanisms are related to EU financed instruments)

○ incentives for manufacturing undertakings to adjust manufacturing technologies;

○ incentives for all participants of electromobility ecosystems to apply/improve systems maintained by them in order to promote introduction of electromobility;

○ incentives for local governments in order to introduce recharging infrastructure;

○ incentives for undertakings in order to participate in the introduction of electromobility market/ecosystem;

○ incentives for training programmes of mechanics;

○ incentives for training programmes for the first users of electromobility;

○ PPP projects (especially in respect of infrastructure);

○ incentives for a large scale demonstration projects;

○ incentives for productions of renewable energy;

○ incentives for repeated use/processing of used batteries;

customers

○ incentives for corporate and private customers of the programme in relation to use of electromobility, batteries, electrical power;

competition

○ incentives for attraction of foreign companies in order to manufacture EV or components related thereto in the country;

○ export promotion incentives.

7.5 Private sector role

Electromobility in Latvia must be based on initiatives of a private sector which the public sector promotes in the abovementioned ways.

Development of recharging stations

• EV manufacturers and infrastructure suppliers shall work together in order to develop recharging infrastructure in cities and among them.

• State or local government shall order feasibility study to the private sector necessary for establishment of electromobility infrastructure.

Ensuring of electricity

• providers of electricity (manufacturers, distribution system operators) ensure the "green" electricity necessary for EV.

Payment possibilities

• On the basis of the State developed unified payment regulation framework, the private sector shall ensure performance of payments.

• It is possible to introduce several payment mechanisms for consumers who plan to purchase and use EV;

• More suitable payment mechanisms must be selected on the basis of appropriate evaluations and taking into account the context of particular State/city.

Sale of EV

• Private sector shall ensure sale of EV, however in the increase of the amount of the sale of EV, especially in the initial stage of establishment of the market, the State support instruments will hold a significant role in order to reach sufficient number of early adopters of EV, who could convince also other users regarding purchase of EV later.

Maintenance/service and battery processing

• After establishment of wide EV market, the role of maintenance and after-sales services will significantly increase;

• Within such context the possibilities for new undertakings could arise in the sector - IT undertakings, battery change companies, electricity suppliers, etc. - will provide services of different type;

• Material processing undertakings and manufacturers of batteries will carry out processing of useless and used EV;

In this context the role of the State would be related to supporting of new types of business.

8 Electromobility development action directions.

8.1 Offered electromobility infrastructure model

It is intended to introduce two level recharging infrastructure (national and local) in Latvia with one centralised clearing system which would be compatible with any if existing European international clearing systems.

The purpose of such structure is to ensure widely available network in the entire territory of Latvia with non-limited accessibility to services of energy suppliers or EV recharging network operator companies by users, and by allowing free competition in all involvement levels, on a condition that suppliers meet certain technical compatibility requirements.

8.1.1 Basic principles for introduction of infrastructure

8.1.1.1 Centralisation

Latvia, when carrying out introduction of EV recharging infrastructure, shall undertake the best of efficient recognised European models: Estonia, Ireland and Portugal, intending a centralised electromobility infrastructure with one operator initially which will ensure introduction of national recharging network and servicing until the time while it will become economically beneficial, and also one clearing centre which will carry out payment functions for international and local operators.

8.1.1.2 Openness

In conformity with the requirements of EC Directive, EV recharging infrastructure of Latvia will be established as opened system on the base of open charge point protocol (OCPP48), which has been accepted as de facto standard in Europe, thus providing a possibility that:

• every person may install a certified recharging station compatible with the network of Latvia and connect to the national recharging network;

• every recharging station operator, meeting the requirements of the Directive and obtaining a licence or certification, may provide operator services in Latvia.

8.1.1.3 Equality

Electromobility network operators of Latvia must ensure equal attitude towards all industry participants, by ensuring that:

• EV user may use any recharging station, regardless of which operator client he or she is, without any additional charge;

• EV user may have a possibility to choose electricity supplier.

In order to ensure equality it must be ensured that operation of EV recharging network does not establish monopoly in which EV recharging stations are manufactured and supplied by, and national recharging station network is operated by one supplier, by using an internal protocol in the recharging station network undertaking, thus encumbering entering of potential competitors (other manufacturers of equipment or operators) in the national electromobility sector.

8.1.1.4 Technical conformity

In order to ensure equality and openness principles technical conformity of recharging stations and operators will be regulated:

• By ensuring that recharging stations installed within the framework of the State support programmes are certified and meet the minimum technical and functional criteria, in order for it to be connected to the national network;

• By ensuring that operators are licensed for conformity for the provision of minimum functional services and compatibility with clearing system operator payments and provision of information for the State needs.

Technical conformity certification and operator licensing shall be carried out by the Electromobility Management and Coordination Institution.

8.1.1.5 Compatibility with other sectors

When developing EV recharging infrastructure installation regulations, overall development interests of the national economy of Latvia must be taken into account, firstly, connection with other transport infrastructure.

Actually it means, for example:

• When establishing infrastructure, priority shall be given to the locations where it is possible to join individual and public transport flow: railway stations, "park-and-ride" stations;

• EV recharging infrastructure must be compatible with other electrical transport, for example, all recharging points must be also ensured with a standard socket for recharging possibility of electric bicycles, electric motorcycles and slow-run vehicles;

• National prestige issues must be taken into account when installing EV recharging points by the tourism objects, which are visited by foreign visitors.

8.1.1.6 Progressiveness

When establishing electromobility infrastructure, Latvia must strive to establish the most progressive system in the world, basing on the newest solutions in information technologies, by using cloud services, mobile applications, authorisation through vehicle instrument clusters and NFC49, QR code50 possibilities, etc., in order to reduce costs of material infrastructure and increase the convenience for users, and also to provide possibilities for Latvia to export the acquired knowledge for establishment of electromobility systems in other countries. One of such possibilities will be building-in of RFID (radio-frequency identification) codes in EV registration plates for automatic authorisation of EV in the corresponding EV recharging stations.

8.1.1.7 Use of "green energy"

In order to ensure that EV use provides reduction of CO2 for the country, it is necessary to ensure relation of used energy with manufactured green energy. By applying electricity certificates of origin for EV recharging, it is possible to differentiate electricity sources and ensure EV recharging with electricity which is acquired from renewable energy resources. It provides an opportunity to distinguish "green" energy consumed by EV from the mandatory procurement component, thus reducing costs for general electricity users. A system has been introduced in several countries that upon introduction of EV, the amount of manufactured green energy must be increased accordingly to prevent redistribution of used green energy among users.

Accounting of green energy must be integrated in the software of recharging network management operator (more information see Section 8.4.3.2). By reaching larger scale for EV recharging, virtual management system may be integrated with electricity smart network. It ensures a possibility to carry out the function of electricity producer for EV batteries while EV is used in a parking place/garage and does not participate in road traffic.

8.1.2 infrastructure levels

General scheme of EV recharging infrastructure of Latvia is demonstrated in the following figure:

Diagram No. 19: General scheme of EV recharging infrastructure

8.1.2.1 Public EV recharging infrastructure: national level

The purpose of EV recharging stations of the national level is to ensure the possibility of EV use in the entire territory of Latvia, thus preventing EV driving distance limitation.

Level of the national network may be divided in two sub-levels which mostly differ by time periods for introduction thereof.

Infrastructure of the first national level shall apply to TEN-T roads in Latvia in which it is intended to place fast recharging stations with 50 kW direct current Combo2 / CHAdeMO recharging possibilities which include also 43 kW alternating current recharging. In this level when selecting a particular place for a recharging station, priority shall be given to the location of recharging stations in order to ensure the possibility for EV to move in the entire territory of the country on TEN-T roads.

Infrastructure of the second level shall apply to the roads connecting TEN-T roads in Latvia and shall be placed in conformity with the plan developed for location of recharging infrastructure, mainly basing on the network of fast alternating current 20 kW up to 43 kW recharging stations with additional possible 20 kW direct current recharging. In order to ensure as wide recharging station coverage as possible, in this level when selecting a particular place for a recharging station priority shall be given to available electric connection capacity, because establishment of electric connection is the most expensive component of the infrastructure costs.

In any case, when selecting the place for installation of recharging points, it shall be made available for EV user to join EV recharging with some other activity as possible, co-ordinating the recharging station capacity with the time period to be spent by EV user at a particular place.

A feasibility study must be developed for the detailed layout of the infrastructure of the national level:

• By finding out potential places of location according to general criteria;

• By carrying out a detailed research according to the road use intensity and for determination of potential number of users;

• By carrying out a detailed research according to available electrical connection infrastructure, by assessing connection costs and determining optimal technical parameters of recharging station.

8.1.2.2 Public EV recharging infrastructure: local level

Local level is public recharging infrastructure within the framework of one local government.

Local EV recharging infrastructure level consists of two parts:

• On the sides of roads of public recharging infrastructure network and by public buildings and other public objects regarding introduction of which local governments are responsible: city councils and municipality councils;

• Public recharging infrastructure network established in co-operation with a commercial sector - by shops, cafes, hotels and other undertakings.

Local level public EV recharging infrastructure, which is established within the framework of the State support programmes, must be complying with the joint compatibility requirements laid down by the Latvian technical standards and clearing centre, in order for it to be included in the joint unified national EV recharging infrastructure network.

Local level EV recharging infrastructure of local government shall be included in the local government development programmes and binding construction regulations.

A certain co-financing of local government shall be intended in the support programme for local level EV recharging infrastructure of local government (Activity 3.3), in order to implement projects related to EU funds51.

In order to qualify for the State support, a local government shall meet the following preconditions for the receipt of subsidies for construction of EV recharging infrastructure:

• Local government must develop electromobility development section in the action plan of development programme of the local government in accordance with the guidelines developed by the Electromobility Management and Co-ordination Institution and methodological recommendations of the MoEPRD for the development of development programmes on regional and local level. It is intended that support funds will be available for local governments for the development of electromobility action plan and binding regulations based thereon (Activity 3.9);

• decision of local government to allow EV to be parked free of charge in local government parking places (Activity 4.9).

When developing binding regulations and territorial plans of local governments, general basic principles of electromobility infrastructure of Latvia shall be taken into account, especially transport flow complementarity principle.

It is necessary to develop a co-operation programme (project competition) (Activity 3.4) in co-operation with a commercial sector for the establishment of EV public recharging station network, where the following is stated:

• Criteria for location of potential places, including technical (connection) criteria, and criteria for co-operation partners;

• Distribution of financing (EU funds, State budget, local government budget, funds of commercial undertakings);

• Relationships between recharging infrastructure owners and operators. The infrastructure purchased within the framework of the State programmes must have a guaranteed inclusion in the national EV recharging network that will be serviced by operator included in the clearing centre system of Latvia and complying with the standards.

8.1.2.3 Private EV recharging infrastructure

Private infrastructure consists of two groups: private infrastructure at home of EV users and private infrastructure of commercial undertakings.

Selection of private infrastructure is upon preference of users. Almost all EV may be recharged also using existing electricity grid connections (sockets) however the State must stimulate EV users to choose appropriate house recharging equipment which will ensure that EV recharging takes place safely and does not disturb overall electricity grid, for example, by ensuring that recharging takes place during night hours when the rate is cheaper and electricity grid is not so loaded.

In order to ascertain that EV recharging is safe and does not endanger users, the State must support installation of home recharging equipment complying at least minimum requirements.

8.1.3 Guidelines for placement of electric recharging station network

When determining placement of electric recharging station network for the national infrastructure, it is recommended for Latvia to follow Estonia sample. The following table provides general guidelines for placement of EV recharging infrastructure:

Level

Number of approximate recharging points

Conditions for placement

Time period for installation of recharging points

National level - for TEN-T roads

30

• On TEN-T roads, strategically placed on road network by the shops, cafes, etc.;
• maximum distance between stations 30 km ((total length of roads - 1759 km);
• Full spectrum of recharging possibilities

Until 2016.
(60 until 2020)

National level - other roads (regional roads connecting TEN-T roads)

175

• In the entire Latvia regional roads connecting TEN-T roads are strategically placed in the network (total length - 5622 m) by shops, cafes, etc.;
• maximum distance between stations 50 km;
• Inhabited areas with the number of inhabitants above 5000 inhabitants; one recharging station per 1000 inhabitants;
• Spectrum of recharging possibilities in conformity with vehicles and EC directives.

Gradually until 2020

Local level: local governments (according to preferences of each local government on the basis of objectives to be reached and priorities defined)

500

• In local governments, road sides, by public buildings and significant objects, including tourism objects;
• Residential houses
• Alternating current possibilities in conformity with the available infrastructure.

Gradually until 2020

Local level: project competition

400

• By undertakings which participate in co-operation programme - shops, cafes, etc.;
• New public buildings in conformity with construction regulations;
• Alternating current possibilities in conformity with the available infrastructure.

Gradually until 2020

Private level

6500

• Personal buildings, together with EV purchase;
• In the territories of undertakings, together with EV purchase of the undertaking or employee;
• In the territories of undertakings - within the framework of project competition;
• Fixed support amount, type of recharging selected by themselves.

Gradually until 2020

Table No. 10: Conditions for placement of EV recharging stations in Latvia

Development of particular detailed EV recharging infrastructure of national level is provided within the framework of the Activity 3.1, by using EU co-financing.

8.2 Electromobility standards in Latvia and compatibility with neighbouring countries

8.2.1 Selection of electromobility standards in Latvia

8.2.1.1 Technical standards of recharging infrastructure

Selection of recharging standards in Latvia is determined by 2 main factors: EU Directive on alternative fuels infrastructure52 and vehicles actually available in the market and recharging protocols used.

On the basis of these factors, and also recommendations of European Standardisation Committee CEN and European Electrotechnical Standardization Committee CENELEC53, in Latvia IEC 62196 standard and IEC 61851 standard will be used on the basis of electromobility recharging infrastructure.

In respect of not yet published standards fast electric recharging points for recharging of mechanical vehicles with direct current will be on the basis of the work - Configuration FF, IEC 62196-3:CDV 2012.

Technical parameters of electromobility infrastructure for each level of EV recharging station network is demonstrated in this table:

Private charging points

Public charging infrastructure network

For private persons

For undertakings

Local network

National network (except TEN-T)

National network, (TEN-T roads)

Charging device type

Alternating current
≤ 7.0 kW

Alternating current
Up to 22 kW

Alternating current, up to 43 kW*,

Alternating current, from 20 up to 43 kW*,
Direct current 20-50kW

Alternating current 43 kW
Direct current, 50 kW

Connection54

Desirable Type 255

Type 2

Type 2

Type 2
Combo 2 and CHAdeMO

Type 2
Combo 2 and CHAdeMO

Charging mode

IEC 62196 Mode 3

IEC 62196 Mode 3

IEC 62196 Mode 3

III/62196
Mode 3

III/62196
Mode 4

Communication protocol for a vehicle with charging station

IEC 61851-1 Annex A

IEC 15118

IEC 15118

IEC 15118

IEC 61851-24
IEC 15118

Communication protocol for a charging station with electrical power network

EV should be included in the smart house electrical system56

IEC 61850-7-420 3

IEC 61850-7-420 357

IEC 61850-7-420 3

IEC61850-420

* depending on possibilities of electrical connection

Table No. 11: Intended technical indicators and standards used for recharging infrastructure of Latvia

8.2.1.2 Communication standard - Open charge point protocol (OCPP)

In Latvia it is intended to use open charge point protocol OCPP as communication standard between recharging stations and operators.

In order to implement vision regarding mutually usable recharging station network in Europe, it was necessary to ensure that different recharging stations could concurrently exist in the market and communicate, and be integrated with "back Office" systems in network operators. Within such context in 2009 OCPP initiative commenced that was started by E-Laad fund in the Netherlands, by intending initially its use for 10000 recharging stations in the Netherlands at that time. In order to promote faster development, this protocol was established as open code protocol and obtained fast support in the entire Europe, and now it is regarded as de facto default standard in Europe which is used also in Russia, China and United States of America.

8.2.2 Compatibility of infrastructure with existing and planned infrastructure of neighbouring countries, and common planned infrastructure of the European Union.

When assessing compatibility of infrastructure, three aspects shall be considered:

• Technical compatibility of recharging (infrastructure);

• Compatibility of users (inter-connections and clearing systems);

• International legal compatibility: Rights and obligations of EV use, including road traffic regulations.

Now it is intended to regulate only the first one from three abovementioned component parts of the infrastructure - technical compatibility of the infrastructure, in electromobility on the Europe level regarding which a directive on deployment of alternative fuels is under development in Europe.

8.2.2.1 Technical compatibility of recharging infrastructure

Directive proposal intends a range of measures the main points of which are as follows:

• Member States must ensure that EV recharging points are built so as to ensure sufficient coverage that they are at least two times more than vehicles and 10% of those points are publicly available, especial attention paying to agglomeration of cities;

• Establishment and management system of EV recharging points should be developed as competition market in which all persons may be freely involved who are interested to establish or manage recharging infrastructure, however dividing of the internal market should be avoided at the same time, that could be caused by deployment of non-coordinated alternative fuels in the market;

• The Member State must ensure coordination for EV recharging points which are not publicly accessible and must try to achieve as large synergy as possible by the to introduce smart metering devices [intellectual meters] in accordance with Annex I (2)58 of Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC59.

8.2.2.2 Compatibility of users (inter-connections and clearing systems)

In respect of compatibility of users, payment and clearing systems no unified European legislation is available in this field for now, except separate provisions in the Directive on introduction of alternation fuels infrastructure, specifically:

• The Member States must co-operate with neighbouring Member State on regional or macro-regional level in the form of discussions or using unified political regulations, especially in those cases, when cross-border coverage of alternative fuels infrastructure must be ensured or a new infrastructure is to be built near the state borders. The Member States, when discussing or using unified political regulations, shall co-operate in order to ensure that measures necessary for the achievement of objectives of this directive are co-ordinated;

• The Member States shall not prohibit EV users to purchase electricity not only from one electricity supplier regardless of the Member State of registration of the supplier. The Member States shall ensure that the price determined in publicly accessible recharging points is commensurate and does not contain additional fee or too high fee that electrical vehicle is recharged by the user who does not have contractual relations with recharging point operator.

Now in Europe a range of projects are implemented which are focused on ensuring of inter-connections on the Europe level: Hubject60, Green e-Motion61, em3, Mobi.Europe62. It is necessary to underline that in Latvia it would be also necessary to participate in all these projects as much as possible in order to acquire useful information from the results of these projects that are not publicly available.

8.2.2.3 International legal compatibility: Rights and obligations of EV use, including road traffic regulations

In respect of legal compatibility, now there is even less unity, only regional efforts to co-ordinate electromobility policies exist, for example, within the framework of the project of North Sea region countries63.

8.2.2.4 Lithuania and Estonia

In order to develop compatibility of the Plan with existing and planned electromobility infrastructure, meetings with Lithuania and Estonian colleagues have been carried out during which the following information have been acquired:

Estonia is the most developed of the Baltic States in terms of electromobility, moreover Estonia has concurrently followed a unique way which is different from the rest of Europe. Estonia is the first country in Europe in which a national recharging network has been introduced which covers the entire country, however it is built on the Japanese CHAdeMO recharging standard base64.

The second difference from organisation of the European recharging infrastructure introduction is that Estonia has introduced only fast recharging network on the national level, and has not completely carried out construction of local recharging networks which are on the basis of electromobility in the European cities65.

For the present moment Estonia has not yet commenced activities in the establishment of inter-connections66, thus for Latvia, by implementing its programme, it is possible to establish a clearing system together with Estonia on the same base.

Lithuania has developed a research regarding introduction of electromobility where the main conclusions have been referred to, which are directed towards introduction of the infrastructure so as investments for increase of capacities of electric networks would be necessary as less as possible, and a recommendation to base the network on Mode1 3.6kW recharging stations67. Such solution is completely opposite to solution of Estonia. Lithuania is planning to develop its own National electromobility plan until the end of 2014.

Figure 1: Designation of electrical vehicle in Lithuania

In terms of legal regulation the Baltic States are not united now - neither in the support and introduction, nor road traffic and vehicle use regulation.

8.4.1 The first direction: support for innovation, research and development in the field of electromobility

Now almost all developed countries and China provide support to electromobility, moreover, Germany, France, Great Britain, USA, and Chine have declared development of electromobility as strategically important and provide support for it in more significant amounts as for industries in general.

8.4.1.1 Measure 1.1.: Support for the performance of industrial researches and development of new products within the framework of the programme "Competence centres"

During a period of introduction of the Electromobility Development Plan performance of industrial researches and support for the development of new products and technologies may be intended, by attracting financing in the next planning period of EU funds (2014-2020), for example, the planned State support programmes "Competence centres", and also within the framework of other activities that intends promoting of co-operation of the research sector and merchants for the introduction of research elaborations in the market.

It is intended in the programme to organise an open project competition regarding allocation of subsidies for the establishment of competence centres in different sectors.

It is important to continue also performance of State commissioned inter-sectoral scientific researches, the improvement of State research centres and private sector infrastructure, and implementation of research projects of practical nature in scientific directions having priority for the State: The State research programmes; EU structural fund activity "Science infrastructure development", and also activity "Support for science and research", in conformity with the provisions laid down in these programmes for conditions of open project competitions.

8.4.1.2 Measure 1.2. Support for electromobility undertakings for acquisition of external markets.

In this measure it is intended to provide support for manufacturing undertakings for participation in international exhibitions abroad, participation in the trade missions organised by IDAL and contact exchanges abroad and other activities of external marketing.

Enterprises will be able to apply for receipt of support in accordance with the procedures of general competition in activity programmes for acquisition of external markets and external marketing activity programmes implemented by the MoE according to the provisions drawn up in the subsequent planning period of EU Structural Funds (2014-2020). Open project competitions is organised in the programme which does not guarantees allocation of subsidy for acquisition of external markets - for external marketing activities in the field of electromobility.

8.4.1.3 Measure 1.3. Support for the establishment of educational programmes for EV servicing specialists

As a result of activities intended in this plan and other EU programmes the number of EV will significantly increase in Latvia, including in public transport, however, currently there are not enough specialists in the country who could carry out servicing and repair works of these vehicles.

In this measure it is intended that educational institutions will supplement training course of automobiles with a new direction "Structure and use of electrical vehicles".

8.4.2 The second direction: Strengthening of administrative capacity and informative measures

8.4.2.1 Activity 2.1. Establishment of electromobility management and co-ordination institution

In this activity it is intended to establish Electromobility management and co-ordination institution which will be leading organisation for the implementation of other activities, in conformity with the functions intended in this plan.

State financing is not necessary in 2014, because it is planned to establish EMCI under subordination of RTSD. State budget resources will be necessary for further maintenance thereof which the Ministry of Transport will request in accordance with specific procedures as new policy initiative.

8.4.2.2 Activity 2.2. International co-operation, entering into co-operation memorandum including in respect of technical and policy harmonisation of the infrastructure and exchange of information regarding development of electromobility.

In this activity it is intended to provide support to the responsible organisation for strengthening of international co-operation. Financing of activity shall be intended within the framework of annual State budget.

8.4.2.3 Activity 2.3. Support for participation of Latvia in international organisations and projects

In this activity it is intended to provide support for participation of Latvia in international organisations and projects. Financing of activity shall be intended within the framework of annual State budget.

For now the following priority organisations and projects have been surveyed in which Latvia needs to become a member:

• Participation of Latvia to the International Energy Agency Agreement regarding hybrid and electrical vehicles - annual budget 20 000 EUR (membership fee - 10 000 EUR, estimated participation costs in working groups up to 10 000 EUR per year, depending on the selected working groups); a part of costs may be covered from industrial undertakings which are interested in participation of Latvia in particular working groups.

• Participation of Latvia in Green e-Motion project in the status of observer. Annual budget - around 2000 EUR. (There is no participation fee, full admission has been closed already, estimated costs in observer (stakeholder) conferences - around 2000 EUR)

Participation in these programmes are critically significant in order for Latvia to acquire the most current information from the projects carried out in the world and not to allow strategic mistakes that may costs millions for the State.

8.4.2.4 Activity 2.4. Support to local governments for the development of electromobility introduction plans, development of binding regulations of construction and inclusion of electromobility in development documents of local governments.

In this activity it is intended to provide support to introduction of measures to be supported by local governments of Latvia in the binding regulations of the local government. This activity is intended in order to stimulate local governments to establish local EV recharging infrastructure points within the borders of the local government. Within the framework of the activity it is intended to develop and include EV recharging infrastructure in the binding documents of territorial development and binding regulations of local governments confirming to the requirements indicated in the alternative fuels infrastructure directive.

8.4.2.5 Activity 2.5. Ensuring of information availability, establishment of electromobility website

In this activity it is intended to establish and maintain official electromobility website of Latvia. Support amount for the development of website - 11000 EUR, annual costs - 2800 EUR per year. Activity financing shall be intended within the framework of annual State budget.

8.4.2.6 Activity 2.6. Organising electromobility promoting measures in co-operation with associations of the sector

The financing for organising different electromobility promoting measures shall be intended in this activity. Support amount: individual for each project. Support intensity - up to 80%.

Now several possible pilot projects have been surveyed in the activity:

• Development of Formula Electric F1 (Formula E) of Latvia by Electromobility Competence Centre and organising Formula E competition in Riga. Pilot project could be implemented in co-operation with "eO" Ltd., RTSD and Riga City Council. The costs of the project is not year known.

• Introduction of "Pupils' Formula" and "Students' Formula" in co-operation with engineer association of Latvian Automobiles. "Pupil's Formula" un "Students' Formula" are international competition of racing automobiles constructed by students of engineering sciences (including EV), which stimulate involvement of the youth in the acquisition of engineering sciences.

• Electromobility information centre. Now in Riga there are two electromobility information centres which have been established by Zero Emission Mobility Support Society and PHEV Opel "Ampera" dealer in Latvia "Auto Blitz" Ltd. at their own resources. It would be necessary to establish a joint Electricity Efficiency and Electromobility Information Centre in Riga on the basis thereof and in co-operation with the SJSC "Latvenergo" where it would be possible for visitors to become familiar practically not only with EV, but also with all newest achievements in this field how they can be used as efficient as possible, and in order to reduce transport costs using cheaper rates at night time, and in order to ensure stability of electricity network and home electricity supply safety by using electricity vehicles as independent backup electricity power source.

8.4.2.7 Activity 2.7. Safety measures of electrical vehicles for rescue services

Rescue services are trained how to act in case of emergency with vehicles of internal combustion engines, for example, by freeing up people stuck therein. Electrical vehicles have completely different structure as vehicles of internal combustion engine, including there are a range of parts: batteries, high voltage power transmission cables, etc., which may endanger rescuers, if they, firstly, cannot recognise EV and, secondly, - are not trained how to act in such situations and what cannot be done in order not to endanger the life of rescuers themselves.

In this activity it is intended together with the Ministry of Interior to develop instructions and training courses for rescue service in co-operation with the European projects and organisation which have developed the necessary documentation in this field in the countries where introduction of EV has been already commenced earlier.

8.4.3 Third direction: Establishment of EV charging infrastructure

8.4.3.1 Activity 3.1. Establishment of national EV recharging network

In this activity resources are intended for the establishment of EV recharging network of national level with co-financing of the European Union. Establishment of the national recharging is the main measure ensuring electromobility which will make possible EV use in the entire territory of Latvia, thus ensuring economic efficiency thereof comparing with internal combustion vehicles.

There have been samples in the world practice when construction of infrastructure network has been commenced with slow recharging stations for EV use for everyday needs, however practice has proved that fast recharging station network speeds up significantly acceptance of EV, if one of the largest psychological barriers- range anxiety, is prevented.

Fast recharging network is an infrastructure of national and strategic significance which will determine vehicle movement development in the next 20-30 years therefore it should be established as national procurement, by installing stations at particular places which in accordance with the national plan are the most beneficial for Latvia in general, not on the basis of free market and competition applications. Experience shows that otherwise stations must be place at places which are beneficial for certain local governments or commercial companies not all users of EV of Latvia.

Due to this reason a detailed feasibility study will be developed for the establishment of the national network, by finding out potential places of location according to general criteria, by carrying out a detailed research according to road use intensity and determination of the number of potential users and by carrying out a detailed research according to the available infrastructure of electrical connections, by assessing connection costs and determining optimal technical parameters of a recharging station.

Following the established plan drawing up of technical specifications, entering into contract on installation places, development of technical plans and co-ordination thereof, installation of recharging stations and at last connection with network management software and putting into service will be carried out.

8.4.3.2 Activity 3.2. Development of network management operator and clearing centre software

It is necessary to develop two softwares within the framework of activity:

a) network management operator software, in cooperation with a commercial company which will carry out operator functions;

b) clearing centre software which will be carried out by EMCI.

EV recharging station network operator is more significant part of the infrastructure which will ensure operation of all recharging system. Main functions of the operator is to link smart recharging stations with complicated database system which allows the use of recharging stations and monitor activity thereof, and also by supporting other advanced functionality. Systems, for example, in Portugal contain a possibility to process multicurrency transactions, support systems of complicated rates, for example, payments which are offered by mobile telephone operators

Within the framework of activity, secondly, it is necessary to establish a completely functional clearing system, in order for all participants to electromobility value chain would receive correct remuneration. This system may also be more complicated than just provision of payments between operators: for example, in co-operation with Oracle Utilities, Portugal clearing centre system is capable to support smart network applications in order to harmonise electricity power network loads, and also to carry out recording of actually consumed "green" energy.

In order to prevent establishment of a monopoly de facto and to ensure independence of electromobility of Latvia in the future, experience obtained in previous examples in the world shall be taken into account, including:

• dominance of one and the same manufacturer cannot be allowed for the both, development of operators and delivery of recharging network devices;

• in order not to cause actual dependence of industry from one supplier, the State must have access to operator software codes.

In the implementation of the activity, it must be ensured that control of strategically important industries are not transferred in the hands of one commercial company.

Real time accessibility for recharging stations shall also be implemented in the satellite navigation systems as Navteq or TomTom with appropriate API (application interface) on the base of recharging network operator software in both, smart phones and automobile on board consoles.

8.4.3.3 Activity 3.3. Project tender with local governments for the construction of local recharging networks on the streets of local government

This activity is intended for the construction of EV recharging points in the sides of streets and parking places owned by the local government, and also in the public buildings and by the public objects, especially - tourism objects. Construction of alternating current recharging points shall be supported with capacity 20-43 kW, and also construction of combined recharging points with capacity up to 20 kW. There must be a possibility to recharge electrical bicycles at the recharging points.

Support will be provided for local governments which have included electromobility development plans in their development plans and territorial planning documents (Activities 3.9, 3.10, 3.11, and 3.12), and also which ensure free of charge standing of EV on the sides of streets (Activity 4.9).

Possible support in these programmes would be up to 85 % from the costs of recharging stations and connection costs for direct or intermediated administration institutions or derived public persons, in conformity with EU directives governing provision of support.

Additional priorities would be given to projects which provide investment in the achievement of objectives of development plans of different sectors (for example, if EV recharging points are installed by tourism objects in accordance with a tourism development action programme of a local government) or at the places were multi-modal effect is acquired (for example by the railway stations, park and ride parking places, or, for example, recharging point is joined with rent of electrical bicycles or rent system of electrical vehicles).

In the end of 2013 open competition for CCFI financed projects planned by MoEPRD "Reduction of greenhouse gas emissions in transport sector - support for introduction of electrical vehicles and recharging infrastructure thereof" will serve as indicator in order to determine the level of interest of the public and private sector in Latvia for purchase and use of EV and recharging infrastructure thereof, development of recharging point support policy for the activities 3.3, 3.4, 3.5 and 3.6.

8.4.3.4 Activity 3.4. Project competition with undertakings for construction of public recharging networks in the territories of undertakings

This activity is intended to support construction of EV recharging stations by commercial, publicly accessible objects. Recharging points must also provide the possibility to recharge electrical bicycles

Potential co-operation partners could be cafes, shop chains and hotels which may use recharging points as means to demonstrate their attitude towards environment and attract customers thinking "green" - especially it is important for undertaking the main customers of which are foreigners. Previous interviews with several trade undertakings of Latvia, and also restaurants and hotels, shows that for the present moment already there is a sufficient interest in order to initiate such programmes.

The possible support will be provided for the costs of recharging stations and connections in these programmes within the framework of de minimis programme, or within the framework of the General Block Exemption Regulation in other cases for merchants. In this programme the maximum support level for one station will be determined on the basis of costs for 22kW recharging stations, because fast direct recharging stations even with such co-financing are too expensive in order for commercial companies installation thereof would be economically beneficial.

8.4.3.5 Activity 3.5. Project tender with undertakings for the construction of private recharging networks in the territories of undertakings

This activity is intended to support construction of EV recharging stations by commercial objects which are not publicly accessible (for example, closed territories of the undertakings for the needs of their employees or customers).

The possible support in these programmes would be up to 50% of the costs of recharging stations, not exceeding 1000 EUR per one connection point. Support would be provided within the framework of de minimis programme.

8.4.3.6 Activity 3.6. Construction of individual recharging points upon purchase of electrical vehicle.

This activity is intended to support construction of EV recharging stations by commercial objects which are not publicly accessible (for example, closed territories of the undertakings) or for private persons upon purchase of EV.

The possible support in these programmes would be for the installation of two recharging points (for example at home and workplace) with support intensity up to 100% for the first recharging point and 80% from the second recharging point, not exceeding 1000 EUR per one connection point in closed territories and up to 3500 EUR in public territories (for example, in courtyards of multi-apartment houses) where recharging point may be used also by other EV users).

8.4.3.7 Activity 3.7. Support for EV in multi-apartment houses.

Most part of inhabitants of Latvia live at multi-apartment houses, where EV recharging is more difficult than it is for inhabitants of private houses, therefore a separate activity for support for installation of EV recharging stations for users who are living at multi-residential houses has been established.

Activity intended two types of support:

a) Financial support within the framework of activity 3.6 for the establishment of recharging points up to 3500 EUR in the territories of courtyards of multi-apartment houses. Financial support programme intends equal co-financing from the part of local governments in co-financing construction of connection points in the courtyards of multi-apartment houses present in the local government territories.

b) Legislation support for the construction of recharging points in multi-apartment houses.

The activity intends to develop the necessary laws and regulations that starting from 2016 electrical connections for arranging of EV recharging points shall be intended in new multi-apartment houses in order it could be possible to install EV recharging points in the future, as well as to arrange recharging points in existing multi-apartment houses.

Support in the Activity 2.4 is intended for the development of the necessary legal acts on the local government level.

8.4.3.8 Activity 3.8. Day-and-night helpline for infrastructure users

This activity is intended for the establishment of day-and-night help for EV users regarding the use of EV recharging infrastructure. Activity costs shall be intended in the EMCI annual budget.

8.4.3.9 Activity 3.9. Mandatory inclusion of recharging infrastructure in parking places

Activity is intended for promoting EV use by granting additional reliefs for EV users which does not intend additional budget expenditure.

Activity is intended for stimulation of construction of EV points in newly erected parking places. Activity intends development of regulations that starting from 2017 certain number of EV points shall be mandatory in all publicly available parking places (paid parking places, parking places by the shops, etc.), which meet certain criteria. It is possible to joint activity with project tender intended in Activity 3.4 or with the local government project tender intended in Activity 3.3.

8.4.3.10 Activity 3.10. Mandatory inclusion of recharging infrastructure in public buildings.

Activity is intended for promoting EV use by granting additional reliefs for EV users which do not intend additional budget expenditure.

Activity is intended for stimulation of construction of EV points in existing and newly erected public buildings for the convenience of EV users. Activity intends development of regulations that starting from 2017 in all existing public buildings (State and local government institutions, schools, hospitals, etc.), where parking places for automobiles are intended, a certain number of EV recharging points must be arranges, and also arrangement of such points must be intended in all newly erected public buildings.

It is possible to join activity with the co-operation programme of local governments intended in Activity 3.3.

8.4.3.11 Activity 3.11. Mandatory inclusion of recharging infrastructure in new construction projects the value of which exceed certain criteria

Activity is intended in order to promote EV use by granting additional reliefs for EV users that do not intend additional budget expenditure.

Activity is intended for stimulation of construction of EV points in newly erected buildings for the convenience of EV users. Activity intends development of regulations that starting from 2015 in designs of all newly erected buildings of commercial use, which meet certain criteria, electricity connections shall be intended for the possibility to build EV points in the future.

8.4.3.12 Activity 3.12. Certification of recharging stations and station operators for the provision of conformity

Activity intends the development of the necessary legislative acts and technical provisions for the establishment of unified and mutually compatible EV recharging stations network in Latvia.

In order to ensure the quality of EV recharging points installed in the territory of Latvia and conformity thereof with the requirements of the Directive on alternative fuels infrastructure68, and also conformity with the technical compatibility requirements laid down for recharging networks of Latvia, it must be intended that only appropriately certified EV recharging points could be sold in Latvia. Certification will be carried out by ECMI or a competent institution authorised thereby. Certification fee shall be covered by the EV recharging point distributor in Latvia. Certification fee shall be comprised of certification costs and State fee.

Recharging station operators must enter into a co-operation contract with a clearing centre operator of Latvia, where all technical requirements for compatibility of management system of recharging station operator network with information systems of the Latvian national recharging network for the ensuring of technical and payment information exchange in real time regimen are harmonised.

8.4.4 Fourth direction: Stimulation of purchasing EV

Now support for EV purchase in Europe is provided in two ways: direct support in the form of subsidies and indirect support - in the form of tax discounts. Both these types of support are usable in order to stimulate EV purchase.

However, taking into account limited budget possibilities of Latvia, it is necessary to put stress on and introduce at first those activities, which provide reliefs for EV users and which do not need financial investments.

8.4.4.1 Activity 4.1. Open project tender for purchase of electrical vehicles: support for local government institutions and commercial companies for EV purchase for the provision of public transport services

Activity 4.1 is intended for the purchase of electrical vehicles for public transport for the replacement of internal combustion vehicles with analogue electrical vehicles: electrical buses, electrical micro-buses and electrical taxis for local governments or undertakings which provide public transport services.

This is economically the most efficient type of EV procurement support because public transport carries the most part of inhabitants thus carrying out the publicity function. Pollution caused by public transport is significantly greater than pollution by passenger cars; also their everyday mileage which allows to acquire larger economic benefits from the difference of use costs.

Support co-financing is intended in the form of pilot projects - for complete or partial electrification of a particular route with a purpose to approbate technologies and ascertain regarding economic efficiency of such type of transport and practical usage possibilities in order to stimulate purchase thereof in the future also without subsidies and reach the objectives defined in the White Paper "Roadmap to a Single European Transport Area": halve the use of 'conventionally-fuelled' cars in urban transport by 2030; phase them out in cities by 2050; achieve essentially CO2-free city logistics in major urban centres by 2030. 69"

Results of project implementation of the activity must be presented in the international conference and they must be publicly available.

Amount of support co-financing is intended as follows in this activity:

- for electrical buses and micro-buses: Costs to be supported shall include research and planning, documentation preparation costs, costs for purchase of electrical vehicles and construction of recharging infrastructure, costs for establishment of acquisition and analysis system, costs for the development of scientific report. Support for merchants is provided in accordance with the provisions of General Block Exemption Regulation.

- Electrical taxis: for vehicle costs and up to 50% of costs for recharging infrastructure. Support is provided within the framework of de minimis programme.

- Support intensities will be determined in conformity with the provisions of applicable legal acts.

8.4.4.2 Activity 4.2. Procurements of electrical vehicles: State and local government institutions

The possibility to provide support for purchases of energy efficient road transport, including modernisation of vehicles, by changing engines and spare parts, technical properties of which exceed mandatory environmental requirements, is intended in the Community guidelines on State aid for environmental protection70 and General Block Exemption Regulation.

Upon introduction of new, environmentally friendly technologies the State should be a sample for the rest of the society, by including electrical vehicles in its transportation fleet as the first. For now already it is intended in Latvia, upon purchase of vehicles for the ministries, the State and institutions under subordination thereof, that their impact on the nature and the amount of CO2 shall be taken into account.71 These regulations must be supplemented, by determining minimum part of vehicles in each State institution which must be electrical vehicles.

It is necessary to carry out a detailed research in order to survey the amount of planned State and local government vehicles to be purchase and to determine the possible amount of EV in the State and local government institutions, as well as effect thereof on the State budget.

If it is planned to provide support for EV purchase, then primary such support must be for State and local governments, in order for the invested resources would remain at the disposal of the State, and to reduce the State budget expenditure in the following years.

8.4.4.3 Activity 4.3. Support for FS development for introduction of electromobility in undertakings

There is a low level or information in undertakings of Latvia regarding the possibilities provided by electromobility in undertakings and transportation fleets. Now already there are certain sectors and usages, where EV are economically profitable even without State support.

This activity is intended in order to hep for undertakings and local governments to be aware of these possibilities, it is necessary to help to carry out functional audits of car parks and developments of feasibility study (FS) for use of EV in these organisations. In the result the possibilities of undertakings will be determined and economic profitability from introduction of EV which will stimulate introduction of environmentally friendly vehicles.

On the basis of the feasibility study developed, high publicity and efficiency projects may be implemented in the sector as pilot projects, for example, by carrying out introduction of zero emissions transport system in "Latvijas Pasts", which will include both, EV and electrical bicycles for postmen, to make their work easier and concurrently it will serve as EV publicity sample.

Support is provided within the framework of de minimis programme.

8.4.4.4 Activity 4.4. Tax allowances upon purchasing and using electrical vehicle

This activity is intended for support for EV purchase in order to reduce necessity for direct support.

It is intended in the activity to develop and to carry out necessary amendments to legal acts in order to reduce or revoke completely a range of taxes for EV (including enterprise tax for passenger car).

8.4.4.5 Activity 4.5. Tax reduction or exemption for EV owned by undertaking

It is intended in the activity to develop and carry out necessary amendments to legal acts in order to stimulate purchase of EV in undertakings, by reducing or revoking completely enterprise tax for passenger car for EV.

8.4.4.6 Activity 4.6. Tax increase for polluting vehicles

It is intended in the activity to develop and carry out necessary amendments to legal acts in order to stimulate use of non-polluting vehicles and encourage not to use (disincentives) polluting vehicles.

Necessary amendments include division of tax rate into road use component which applies to all vehicles, including EV, and pollution component, which is to be increased for polluting vehicles.

In the activity it is necessary to carry out a research in order to determine optimal intended tax rate increase for polluting vehicles in order to budget expenditure caused by activities supporting zero emission vehicles.

8.4.4.7 Activity 4.7. Use of EV in public transport lanes and (in the future, if any) multi-driver lanes

Activity is intended for promoting EV use by granting additional reliefs for EV users which does not intend additional budget expenditure. It is intended in the activity to develop and carry out necessary amendments to legal acts in order to allow the use of EV in public transport lanes where they can mileage in one direction with overall transport flow, and also to study the possibilities to establish multi-drivers lanes and use of EV in these lanes in the future.

8.4.4.8 Activity 4.8. Free of charge parking of EV in public (owned by local governments) parking places on the sides of street

It is intended in the activity that local governments develop and carry out necessary amendments to regulations of local governments regarding free of charge parking of EV in the parking places on the street sides owned by local governments. Introduction of this activity in a local government may be as a pre-condition for achievement of other types of support for the local government (for example, for support for purchase of recharging stations or EV).

When determining support for free of charge parking for EV in the parking places owned by local governments, a local government may determine criteria for the end time period of this activity in its development programme, which is substantiated by economic profitability changes of EV and increase of the number of EV, after which granting of such support would not be economically justified anymore.

8.4.4.9 Activity 4.9. Free of charge use of EV in paid areas

It is intended in the activity that local governments develop and carry out necessary amendments to regulations of local governments regarding free of charge use of EV in paid areas (for example, free of charge entry in Jurmala).

8.4.4.10 Activity 4.10. Exclusive right of use of EV in "clean" areas of cities

It is intended in the activity that local governments develop a feasibility study and evaluate the necessary amendments to legal acts, in order to stimulate establishment of "clean areas" in city centres (for example, in Old Riga) with exclusive entry for zero emission or la emission vehicles.

8.4.4.11 Activity 4.11. Development of legislation governing EV use

It is intended in the activity to develop and carry out necessary amendments to legal acts which will regulate how EV use is carried out, including:

• to determine distinctive signs for EV and low emission vehicles;

• to develop road designations and road signs for EV recharging points;

• to regulate placing of internal combustion engine vehicles at the recharging points of EV in parking places and street sides;

• to regulate rights and obligations of EV users when performing EV recharging.

8.4.4.12 Activity 4.12. Support for purchase of electrical vehicles for natural and legal persons

The main purpose for the provision of direct support is to reduce psychological barrier for EV purchase by taking into account that EV is more expensive capital investment. However, by providing support, the amount of provided support must be assessed. The main argument to be covered is actual costs of vehicle use and economic justification for support system by carrying out life cycle cost calculation for determination of actually necessary amount

In Latvia it is necessary to determine amount for EV purchase on the basis of the following basic principles:

1) Support covers the difference of present economic expenditure, and also deficiencies which have the users thereof, the main of which is non-existence of recharging infrastructure. Demonstrative example, that support for EV purchase without infrastructure does not have any value, is Estonia which provided high co-financing of 18500 EUR or 50% that is unusually high for the European level, however the amount of purchased EV was minimum until the commencement of introduction of EV recharging infrastructure in the 2nd quarter of 201272.

2) By taking into account the conditions of EC working group guidelines in respect of technological neutrality and proportionality73, support is provided in proportion to vehicles of all types and technologies, which exceed minimum conformity requirements laid down in EU Regulation - 95gCO2/km - for both, BEV and PHEV.

3) With regard to technology development and reduction in prices, it is intended that until 2018 the difference in prices between EV and internal combustion vehicles will equalize, thus the support is reduced each year proportionally.

Graph 2: EV purchase in Estonia (pieces/per month)

Data: Kredex

According to European experience and former attitude of car manufactures, it is worth to start to sell EV (and in the result - to provide support) only then, if a clear State policy is defined in the country, recharging infrastructure is established and necessary informative measures are carried out for the introduction of EV in the market. In accordance with this plan the referred to criteria will be achieved in 2016. Concurrently, Latvia will have to start to provide support for EV purchase by determining actual amount of support in conformity with EV purchase prices of the present moment, and also electricity and fossil fuel costs.

Until that it is necessary to carry out preparation works, by developing necessary legislation framework for provision of support, and also by providing a lump sum support in the form of a pilot project within the framework of open tender for projects financed by Climate Change Financial Instrument and organised by MoEPRD "Reduction of greenhouse gas emissions in transport sector - support for introduction of electrical vehicles and recharging infrastructure thereof". It is necessary to make receipt of further systematic support for EV purchase after 2016 as simple as possible, that could be performed upon EV purchase.

Support for undertakings for purchase of EV must be commenced, firstly, by including purchase of EV as eligible costs in all support programmes for entrepreneurship, which intend to support purchase of fixed assets, including in the support programmes of IDAL for support of entrepreneurship and support programmes for rural entrepreneurs administered by RSS, thus the necessity to intend specially additional resources for support for purchase of EV will be reduced.

 


1 http://www.latvenergo.lv/portal/page/portal/Latvian/latvenergo/main_page/korp_atbildi/UZLADES_PUNKTU_KARTE

2 CEE 7; 16A/230V/50Hz

3 COM 2013 (18)

4 International energy agency (IEA). Technology Roadmap: Electric and plug-in hybrid electric vehicles, IEA, 2011.g. renewed edition

5 International energy agency (IEA). Technology Roadmap: Electric and plug-in hybrid electric vehicles, IEA, 2011.g. renewed edition

6 IEA Agreement on hybrid and electric vehicles, Executive committee meeting, 2012, Stuttgart.

7 Innovation Union Scoreboard 2013 http://ec.europa.eu/enterprise/policies/innovation/files/ius-2013_en.pdf

8 NDP 2020 [198]

9 Energy dependence - import of net energy resources/gross domestic energy consumption plus bunkering (%)

10 Eurostat: Energy transport and Environment Indicators 2012.edition ISSN 1725-4566

11 NDP 2020 [198]

12 Central Statistical Bureau of the Republic of Latvia www.csb.lv

13 Excise Administration of SRS, Reports of circulation of oil products for 2008, 2009, 2010, 2011, 2012.

14 NDP 2020 [120]

15 Research by the Institute of Physical Energy, Sustainable Energy Action Plan of Riga 2010-2020.

16 NDP 2020 [205]

17 http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&plugin=1&language=en&pcode=t2020_31

18 Directive 2009/28/EC

19 Eurostat, http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&plugin=1&language=en&pcode=tsdcc340

20 Informative report "Action of the Republic of Latvia in the field of renewable energy for the introduction of Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC until 2020"

21 http://www.lizings.lv/lv/aktualitates/whatcar_zinu_arhivs/apvidus_auto_latvija_joprojam_popularakie

22 http://www.db.lv/auto/bez-apvidus-auto-latvija-neiztikt-253734

23 http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&plugin=1&language=en&pcode=tsdtr410

24 Latvia's National Inventory Report (NIR) under the United Nations Framework Convention on Climate Change (UNFCCC), Kyoto Protocol and Decision No 280/2004/EC 2012

25 RTSD data, non-published

26 Forecasts of trade volume of new vehicles: Latvian Authorised Automobile Dealers ssociation http://www.lpaa.lv/lv/statistika/latvija

27 IEA, "Technology Roadmap, Electric and pug-in hybrid electric vehicles" 2011

28 IEA Technology Roadmap 2011. Electric and plug-in hybrid electric vehicles

29 IEA Technology Roadmap 2011. Electric and plug-in hybrid electric vehicles

30 Price range is from 250 EUR - 13 000 EUR. On average it is 950 EUR. Data from Green eMotion.

31 IEA Electromobility Roadmap

32 http://edition.cnn.com/2012/11/25/business/eco-hydrogen-fuel-cell-cars

33 Analysis of strong and weak sides, possibilities and risks (SWPR)

34 Source: The Ministry of Economics of the Republic of Latvia http://www.em.gov.lv/images/modules/items/Elektroen_pieg_strukt_1990_2011.gif

35 Research carried out by Swedbank: "Car use habits. Influence of fuel prices on the budget of families of Latvia".

36 COM(2013)18

37 Interview in World Electric Vehicle Summit 2012 with Chargepoint (Great Britain)

38 http://ec.europa.eu/public_opinion/archives/ebs/ebs_322_en.pdf

39 http://www.db.lv/razosana/energetika/zarins-zala-energija-var-klut-par-latvijas-tautsaimniecibas-kapraci-233709, http://www.ir.lv/2012/2/28/zala-energija-tikai-miti-miti-vien, http://www.diena.lv/blogi/latvijas-gaze-dod-prettriecienu-a-la-the-empire-strikes-back-700348

40 http://www.providus.lv/public/27776.html

41 http://em.gov.lv/em/2nd/?lang=lv&id=33459&cat=621

42 http://www.atjaunojam.lv/index.php/laika-ass/36-kategorija/laef-pazinojumi/99-aptauja-71-sabiedribas-neatbalsta-ekonomikas-ministrijas-risinajumus-oik-pieauguma-ierobezosanai

43 COM 2013 18

44 For illustration, in the energy market related to electromobility a natural monopoly is electricity distribution market, in which efficiency is ensured by one owner of energy supply networks, but by the help of State regulating interference equal and non-discriminating access to electricity transmission networks is ensured for all market participants.

45 Countries with federative organisation structure - Germany, USA, are not covered

46 Informative report "Regarding Establishment of Unified Financial Institutions and State Support Programmes which are Implemented in the Form of Financial Instruments", Cabinet minutes No.54 02.10.2012, 38.§

47 COM 2013 18

48 Open Charge Point Protocol - www.ocpp.nl

49 Non-contact Near Field Communication is a protocol for communication of smart phones with devices when located in a near distance of few centimetres

50 Quick Response Code - matrix type code for automatic data machine-reading

51 http://www.tvnet.lv/auto/satiksme/424076-rigas_dome_plano_pirkt_elektromobilus_un_izbuvet_uzlades_stacijas

52 COM 2013 18

53 CEN-CENELEC Focus Group on European Electro-Mobility Standardization for road vehicles and associated infrastructure Report in response to Commission Mandate M/468 concerning the charging of electric vehicles, version 2, 2011.

54 Connection and recharging regimen: IEC 62196 corresponding sub-standards (see Electric recharging standard system in Latvia)

55 Experience in Europe shows that standard home connections are not intended for extended use at maximum load therefore fire risks are caused and it is recommended to install distinguished charging for EV or reduce permissible recharging power to 10A or 8A (2.3 or 1.8 kW)

56 Facilitating e-mobility: EURELECTRIC views on charging infrastructure. EURELECTRIC Position Paper, March, 2012.

57 Public fast recharging stations according to functionality thereof are not intended for V2G usage.

58 The Member States shall ensure introduction of smart metering units which help to achieve active participation of consumers in electricity supply market. Economic evaluation regarding all long-term costs and benefits can be carried out in respect of introduction of such metering devices for both, the market and individual consumers, or regarding what kind of system of smart metering devices is economically justified and beneficial in terms of costs, and what schedule would be suitable for the introduction thereof.

Such evaluation might be carried out until 3 September 2012.

On the basis of such evaluation, the Member State or any competent institution assigned thereby shall draw up a schedule in which an objective to introduce the system of smart metering devices within 10 years the longest is defined.

In case the issue of smart meters is assessed positively, at least 80% of consumers shall be ensure with systems of smart metering devices until 2020.

59 OJ L 211, 14.8.2009., p. 55.

60 http://www.hubject.com/pages/en/index.html#1-1-home.html

61 http://www.greenemotion-project.eu

62 http://www.mobieurope.eu

63 http://e-mobility-nsr.eu/

64 Estonian presentation in CHAdeM conference in Brussels, in 2013.

65 www.elmo.ee, a presentation of Estonia during the visit of Latvian delegation in Tallinn, 27.03.2013

66 Interview with Jarmo Tuisk and ABB in Estonia regarding operator centre of Estonia.

67 Interview in the Ministry of Transport of Lithuania, 20.02.2013.

68 COM 2013 18

69 Roadmap to a Single European Transport Area - Towards a competitive and resource efficient transport system, Brussels 28.03.2011

70 Community guidelines of 1 April 2008 on State aid for environmental protection Official Journal C 82 of 1.4.2008

71 The Cabinet Instruction No.12, Procedures for Purchase and Lease of Service Passenger Cars, 2 October 2012 (minutes No. 54 21.§)

72 Working group visit at Kredex, 27.03.2013

73 SWD 2013 27 (28.02.2013) Paragraph 5.2

 

Translation © 2015 Valsts valodas centrs (State Language Centre)

 
Document information
Status:
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in force
Issuer: Cabinet of Ministers Type: order Document number: 129Adoption: 26.03.2014.Entry into force: 26.03.2014.Publication: Latvijas Vēstnesis, 62, 27.03.2014. OP number: 2014/62.9
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