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Proceedings of the 2015 International Conference on Industrial Engineering and Operationns Management

Dubai, United Arab Emirates (UAE), March


M
3 5, 2015

Planning and managing


m
problems of energy
e
and
energy efficienccy at regional and distriict level in
L
Latvia:
Case study
Gita Actina, Ineta Geipelee

Namejjs Zeltins

Institute of building entrepreneurship andd real estate


economics
Riga Technical University
Riga, Latvia
leen@edi.lv; ineta.geipele@rtuu.lv

Energy Effficiency Centre


Institute of phhysical energetics
Rigaa, Latvia
zeltinssh@edi.lv

Abstract This Paper is devoted to find ou


ut and determinate
a range of planning and managing problem
ms of energy and
energy efficiency at district level in the Republic
R
of Latvia.
Planning of energy and energy efficiency meeasures in Latvian
districts is based on the European Union guid
delines and national
development plans of the country. Method
ds applied by the
authors are analysis of the scientific and proffessional literature,
official documentation and logical approach. The main material
analyzed comprises of legal acts, statistical data provided by
Latvian Central Statistical Bureau. Research showed that issues
of energy and energy efficiency policy are not dealt with on a
proper level. Shortage of specialists and municipal responsible
persons complicates the necessary data acquisition and
processing. Contribution of this research is improvement of
d energy efficiency
existing procedures of regional energy and
measures planning process and carrying ou
ut control of their
execution thus further developing. Authors of this researcher are
recommending to create governmental energgy agencies in each
Planning Region responsible for sustainab
ble energy policy
development at regional level. This research is of international
o
countries to
importance because it can be applied in other
improve their administrative planning system on
o a regional level.
Keywords Planning regions, Energy policyy, Energy agencies

I. INTRODUCTION
Heating decentralization and dependencee on imported fuel,
capability of increase energy efficienccy to individual
customers, are only some existing problem
ms in the field of
energy in Latvian. The energy and energy effficiency policy set
on national level by following the EU direcctives, reflects the
global goals and common interests of Com
mmunity, but one
should bear in mind also the interests of the state,
municipalities and end users. To achieeve better results
enterprises and household should be able to influence
i
and form
the National Development Plan of Latvia by
b offering to the
community and regional energy planning agency their
individual plans and visions of the futture development.
Enterprises are not obliged to compile their energy
e
data, which
are classified as a business secret, and traansfer them to the
planning regions, thus complicates the ennergy planning at

regional and district level, because the output data is not


precisely known.
The research showed thaat several problems should be
settled to improve energy and energy efficiency planning and
follow-up process at district leevel. Shortage of specialists and
municipal responsible persons, as well as the limited financial
resources, aggravates the neecessary data acquisition and
processing. In order to imprrove existing procedures, state
institution in each planning reggion which would be responsible
for the field of energy and energy
e
efficiency measures and
carrying out control of their exxecution thus developing further,
as a result, the policy of the fielld should be created.
Two regional energy agenccies are already operating - Riga
and Zemgale; however, they arre not state institutions. So they
can't demand the data from enterprises. This complicates
energy and energy efficiency planning
p
process. Results of this
study propose optimization of establishing Energy agencies in
Latvian planning regions too improve feedback between
regional and national planning levels.
l
II. PLANNING REGIONS IN LATVIA
A
AND THEIR FUNCTIONS
2009th was implemented municipality
m
and administrative
territorial reform, and since Julyy 1, 2009 Latvian administrative
territorial division consists off 118 municipalities - 9 major
cities and 109 counties [1, 4].
Fig. 1. Location of Latvian Planning Regions
R
[6]


Also five planning regions have been created - Riga,
Vidzeme, Latgale, Kurzeme and Zemgales - to ensure regional
development planning, coordination and cooperation among
local governments [3].

determine the main basic principles, aims and


priorities for the long-term development of the
planning region;

Competence of Planning Regions determined by Section


16' of the Regional Development Law (in force from
23.04.2002.).

ensure the co-ordination of the development of the


planning region in conformity with the main basic
principles, aims and priorities specified in regional
development planning documents;

manage and monitor the development and


implementation of planning region development
programs and spatial plan;

evaluate and provide statements about the mutual


coordination of regional and local development
planning documents and their compliance with the
requirements of the legislation;

Planning regions within the scope of their competence shall


ensure the planning and co-ordination of regional development,
and co-operation between local government and other State
administrative institutions. In addition to the competences
specified in other regulatory enactments, planning regions shall
[4]:

Fig. 2. Administrative structure of planning regions in Latvia

ensure local government co-operation and the cooperation of the planning region with national
level institutions for the implementation of
regional development support measures;
evaluate the conformity of the national spatial
plan, national development plan and sectorial
development programs to the planning region
development program and spatial plan and, in
determining non-conformity, propose amendments
to the national level development planning

documents or decide regarding amendments to the


planning region planning documents;

evaluate the projects submitted by territorial local


governments or private persons for the receipt of
regional development State aid and provide
opinions in respect of them;

in co-operation with local governments and State


institutions, develop a planning region
development program and spatial plan, ensure the

co-ordination thereof with the national spatial


plan, national development plan and sectorial
development programs, as well as the
management of the implementation thereof;

co-ordinate and promote the development,


implementation, supervision and evaluation of
planning region regional development support
measures;

prepare opinions regarding the conformity of


national level development planning documents to
the planning region development program and
spatial plan;

elaborate and carry out the projects within the


activity of regional development support.In order
to implement the competences of planning
regions, the Planning Region Development
Council

Planning regions may [4]:

establish, reorganise and abolish planning region


institutions and capital companies, decide regarding
participation in associations and foundations.

determine the salary of the Board chairman, Board


members and employee carrying out administrative
tasks and the payment procedure.

determine the type of paid services provided by the


planning region as well as the amount of payment.

Kurzeme Planning Region is a subordinated public entity


under supervision of the Ministry of Environment Protection
and Regional Development (hereinafter MEPRD) dealing
with planning and coordination of KPR, public administration
in the area of public transportation in compliance to its
competence, cooperation among municipalities and other state
administration institutions. [The body with decision authority
of is the Kurzeme Planning Region Development Board, the
executive institution Kurzeme Planning Region
Administration. [7]
Kurzeme values and characteristics:

More than 350 km long Baltic sea coast;

Ports established on the Baltic Sea coast Liepja,


Ventspils, Pvilosta- and on the coast of Riga Gulf Pvilosta, Roja, Mrsrags;

Renewable energy resources - wind, sea waves, sun,


biomass, thermal waters;

Nature protected areas (Natura 2000) National park,


nature parks and reserves;

Cultural heritage and traditions fishing villages,


small historical towns, events

Vidzeme Planning Region (VPR) was established in 2006.


The main goal of VPR is to ensure regional planning and
coordination, as well as cooperation between municipalities
and different governmental institutions. VPR provides planning
services on national, regional and local level; it ensures

regional and local level representation in elaboration of


entrepreneurship, employment and social policies. VPR
mission is to coordinate and promote long-term and wellbalanced development of the Vidzeme region by providing
effective services to local inhabitants, NGOs, entrepreneurs and
municipalities [22].
Vidzeme planning region services at regional level [22]:
1.
Ensuring the planning - organization and
implementation of territorial development planning at the
regional level, involving all stakeholders; issuing adjudgements
on local planning documents;
2. Representation of interests - representation of the
regional development interests on the national and international
levels;
3. Support to development and partnership - organizing
cooperation events, providing consultations, organizing project
competitions, involvement of other regions and foreign
partners, implementation of projects for local governments,
NGOs, entrepreneurs and other groups;
4. Provision of information compiling statistical
information, management of different kinds of research,
compiling and publishing information on various current
issues;
5. Coordinating the work of local governments - promoting
cooperation of local authorities by organizing events and
ensuring successful work of the Development Council;
6. Implementation of specific functions - strategy for the
period - public transport planning in the region.
Zemgale Planning Region is under the supervision of LR
Environmental Protection and Regional Development Ministry
and according to the Regional Development Law has a status
of derived public person. The decision-making authority of
Planning Region is Zemgale Planning Region Development
Council, which is appointed at the General Meeting of all the
heads of the local municipalities comprising from the
municipal deputies of the region. Zemgale Planning Region
Council consists of 22 appointed members. [5]
A long-term development vision provides that Zemgale
should be a region with a favourable living environment, a
region with the developed knowledge-intensive economy,
production units and services with high added value, and a
region with a cultural environment and landscape typical of
Zemgale, where the balance between the individual and
environment is maintained.[5]
Zemgale region is located in the central part of Latvia, to
the South from Riga. Region is located along the border of
Lithuania and is also bordered by the Latgale, Vidzeme,
Kurzeme and Riga planning regions. It is located in the central
part of the Zemgale plain.[5]
The Zemgale area includes 10 742 sq km, which is 16.6%
of the total territory of Latvia. The cities occupy 645 sq km, or
6% of the total territory of the Zemgale region.[5]
Latgale Planning Region is a derived public person that has
been established in accordance with the Regional Development

Law and its activity has been financed from the state principal
budget. Latgale Planning Region has been founded in August
2006 with the aim to ensure the planning and co-ordination of
regional development, and co-operation between local
government and other state administrative institutions. In June
2006 Saeima of the Republic of Latvia has adopted the
amendments to the Regional Development Law (in force
from 01.08.2006) and granted a legal status to the planning
regions. Latgale Planning Region is one of the five planning
regions in Latvia. Latgale Planning Region acts under the
supervision of the Ministry of Regional Development and
Local Government in accordance with Regional Development
Law, Territorial Development Planning Law, Latgale Planning
Region Regulations and other laws and regulations in force. [8]
The territory of Riga Planning Region was created as
prescribed by Regulations No 133 of the Cabinet of Ministers
as of 25.03.2003. Regulations on Territories of Planning
Regions, however the state institution was founded on 12
October, 2006.[4]
Riga region is situated in the central part of Latvia and its
metropolis is the capital city of Latvia - Riga. The territory of
the region covers Riga, Riga district, Jrmala, as well as the
districts of Tukums, Ogre and Limbai. [4]
In recent years the structure of territorial placement of
economy has changed the territories with beneficial
placement develop faster. Historically better preconditions for
the development of the competitive national economy in the
market conditions have formed in the nucleus of Riga region.
Significant differences between the nucleus of Riga region and
remote areas appear in the very region territorially, as well as
in the social sphere, regarding the peoples income, business,
work possibilities, which might be seen in the contributions to
the municipal financial cohesion fund and municipal subsidies.
Larger payers are situated in the centre of the region, whereas
the larger receivers of the subsidies in the remote areas.[4]
The capital city and the Pieriga territory are able to be more
flexible and to react to changes and adapt to the market needs,
as well as to acquire investment. Rigas role as the promoter of
the development is weak in the remote territories.
Administration of many municipalities underestimates its role
and possibilities for promoting the extension of labour
market.[4]
In Pieriga, especially closer to Riga, intensive chaotic
construction of new dwelling places has emerged, but very
often without engineering infrastructure and institutions of
social services and site development, by ignoring the principle
of balanced development.[4]
Thus these dwelling places emerge without work
opportunities, increasing the pendulum migration, unnecessary
transport flow, load and environmental pollution. [28, 29]
Keeping the same course, Riga region might lose the possible
reserves for the development of infrastructure serving the
territories of Riga and the existing spatial advantages
relatively balanced proportion of constructed areas and green
territories in Pieriga and considerably good suburb-city access
by the public transport.[4]

III. ENERGY AGENCIES IN LATVIA AND THAYR COMPETENCE


The Intelligent Energy Europe programme provided
funding to about 80 local and regional energy agencies that
help local communities across the EU. [9,]
The agencies provide services both to users and public
authorities, including [9]:

independent advice and guidance to energy users;

technical support and policy advice to public


authorities;

they act as an information channel between EU policy


makers and users and public authorities.

Energy Agencies listed by type national (central),


regional, local. [10]
Riga Energy Agency was legally established on 23 January
2007, under the legal form of municipal agency, registered in
the Register of taxpayers with code 90002316775 in
accordance of The Resolution on the Establishment of the
Municipal Agency of Riga "Riga Energy Agency" made by
Riga City Council on 23 January 2007, and started its operation
on 15 May 2007. The Agency has the following functions[11,
12]:
1.

To elaborate and update the Development Concept of


Riga District Heating System;

2.

To elaborate the Program for Increase of Energy


Efficiency;

3.

To organize implementation of Program and related


projects;

4.

To prepare an annual report on the current situation


and the progress made in area of energy efficiency in
Riga city;

5.

To establish the unit within Agency called Energy


Efficiency Information Centre;

6.

To liaise with foreign and international institutions and


organizations according to the area of authority of the
Agency;

7.

To provide service of energy auditors;

8.

To publish information materials and to provide


information to mass media in the area of authority of
the Agency;

9.

To cooperate with governmental and municipal


institution, non-governmental organizations, and other
legal as well as physical entities, etc.

Zemgale Regional Energy Agency started its operation in


March 2009, its key activities [11, 13]:
Collection of energy data, regular assessment of the
situation in energy sector in Zemgale region
Development and maintaining of energy data base in
Zemgale region;
Energy planning at regional level;

Promotion of energy efficiency;


Promotion of use of Renewable Energy Resources;
Provision of energy services in Zemgale region,
Latvia - advice&consultations etc.;
Participation in different EU, national networks and
projects to foster the introduction of the best solutions in
energy sector;
Publishing of information materials in the mass media
on actualities in energy;
Cooperation with governmental and municipal
institutions, non-governmental organizations, and other
legal as well as physical entities a.o. to reach the goals in
energy sector;
ZREA offers partnership in energy related projects to
transfer best knowledge and know how across EU and into
Latvia.
IV. RESULTS OF LATVIAN REGIONAL PLANNING SYSTEMS
ANALYSIS

3. In whose subordination will the organisation operate


of the state, or the planning regions?
4. How to convince society about the necessity of such
an organisation?
Considering the fact that the regional development plans
are worked out, as already mentioned, by the corresponding
planning regions which have a very vast scope of
responsibilities, one can draw a conclusion that the
development and control of the implementation of the energy
and energy efficiency plans in the region, as well the municipal
energy agency should be under the authority of the respective
planning region.
The results of this research showed that in condition of
limited financial resources and lack of appropriate specialists in
Latvian, the implementation of governmental funded structure
can be economically viable and can influence the development
of regional energy sector much more effectively.
V. RECOMMENDATIONS FOR IMPROVEMENT OF ENERGY
PLANNING PROCESS AT NATIONAL AND REGIONAL LEVEL

When drawing up long-term and short-term action plans for


power industry and energy efficiency [25,26] in the regions of
Latvia, we came across serious problems of obtaining reliable
data about power industry in the regions where there are no
municipal energy agencies established[14]. Cooperation with
the responsible persons in the planning regions indicated that
the issues of the development of the energy and energy
efficiency policy are not dealt with in the planning regions of
Latvia on a due level.

Establishment of municipal energy agencies may be


hampered by the absence of an insufficient number of
specialists in this field. [1] Considering the present situation in
the regions of Latvia that there specialists already are
overloaded to a maximum but, in order to attach specialists
from other regions of the capital of the country, a plan of
corresponding motivation should be created. Authors of this
researcher are recommending to create governmental energy
agencies in each Planning Region responsible for sustainable
energy policy development at regional level.

Since 2009 the Latvian Central Board of Statistics does not


compile the energy balance data about the regions, hence the
private enterprises are not obliged to compile their energy data
and transfer them further to the planning regions, as these data
are classified as a business secret.

Establishment of a municipal energy agency and also its


further operation may be influenced by societys attitude to
such a kind of institution. There is a risk that in the eyes of
society it will be perceived as a bureaucratic apparatus, one
more item in the tax expenditure list which will bring no return.

In contrast to Riga Planning Region where there exists a


Municipal Regional Energy Agency, and Zemgale Region
where there is the society Zemgale Regional Energy Agency,
in the other planning regions of Latvia a lack of specialists in
the branch and municipal responsible persons is observed,
which aggravates retrieving and processing of the necessary
data [16].

Meanwhile the enterprises and households may raise


objections against the extra duties connected with the
accountancy of ones personal energy data and their transfer to
the municipal energy agency. In this case societys failure to
understand the necessity of a municipal agency should be
regarded as an essential problem.

Establishment of municipal energy agencies and


appointment of concrete responsible persons would improve
the data retrieving process and the degree of their reliability.
[15,27] In this way development of mutual link would be
promoted between the enterprise, household and the national
strategic plan.
At the same time, difficulties are expected, connected with
the establishment of municipal energy agencies. Before the
municipal energy agencies are created, the following questions
should be clarified:
1. How to convince the municipalities about the need to
establish an organisation?
2. From what sources will the activities of the
organisation be financed the state, or the municipality?

In order to clarify questions, informative seminars, open


discussions have to be arranged in the regions, informative
booklets should be distributed, and information should be
published in the regional newspapers about the goals, structure,
activities and the results this organization is going to achieve:

cooperation among the energy enterprises, the


consumers of the energy resources, and the state;

create a link between state strategic planning


institutions, the municipal planning institutions, and the
consumers of energy.

to optimize the process of the energy and energy


efficiency policy, requiring at the same time higher precision in
planning the measures and control of the results achieved;


to promote the development of the energy and energy
efficiency policy and practical tasks in corresspondence with the
real situation in the regions of Latvia;

[4]

Summing up what was mentioned abovee; one can draw a


conclusion that, in order to implement successfully and
sustainably the idea about the establishm
ment of municipal
energy agencies, the following managem
ment activities are
important:

[6]

1. Drawing up of an establishment plaan of the municipal


energy agencies for each particular region.

[9]

2. Arrangement of informative activitiees meetings with


the responsible persons of the regional munnicipalities, leaders
of the enterprises of the region, and the specialists of the
branch.

[10]

3. Implementations of informative and motivating


activities informative seminars, open discusssions, informative
booklets, etc.

[12]

4. Control of the introduction/implemeentation process of


the idea; in response to the achieved results, making
m
changes in
the introduction plan and the implemented acctivities.

[14]

Contribution of this research is improvvement of existing


procedures of regional energy and energy effficiency measures
planning process and carrying out control of their execution
thus further developing. This research iss of international
importance because it can be applied in other
o
countries to
improve their administrative planning systeem on a regional
level.

ACKNOWLEDGMENT

[5]

[7]
[8]

[11]

[13]

[15]

[16]

[17]

[18]

This work has been supported by the Euroopean Social Fund


within the project Support for the implemenntation of doctoral
studies
at
Riga
Technical
Unniversity,
Nr.
2009/0144/1DP/1.1.2.1.2/09/IPIA/VIAA/0055.

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BIOGRAPHIES
Gita Actina, is the PhD student at Riga Technical University, Faculty of
Engineering Economics and Management. She holds a Bachelor Degree in
International Economic Relations from Latvian University, Faculty of
Economics and Management and Master Degree in of Marketing Research
from Latvian University, Marketing and Quality Management Institute. Since
2013 she is the Head of Latvian energy efficiency network at institute of
Institute of Physical Energetics. She is a member of Latvian Member
Committee of the World Energy Council and International Association for
Energy Economics. Ms. Actina participated in National Research Program

"Innovative energy resource extraction and use of technologies and low


carbon provision of renewable energy support measures for environmental
degradation and climate" Project No. 2 "Latvian regional energy diversity
analysis and measures for efficient use of energy through sustainable energy
supply". Research focus sustainable energy development, renewable energy
sources, regional energy policy and district energy efficiency plans.
Ineta Geipele, is the Professor at the Faculty of Engineering Economics and
Management, the Director of the Institute of the Civil Engineering and Real
Estate Economics, the Head of the Chair of the Civil Construction and Real
Estate Economics and Management of the Riga Technical University (RTU),
Latvia. She has earned Doctor's degree of Economics and Master's degree of
Economics in Engineering Sciences at the RTU. Her professional skills are
improved in Austria, Germany, Denmark and England. She is an author and
co-author of more than 180 scientific publications. Her current research
interests are focused on Sustainability Development Problems of Real Estate
Market, Construction Industry, including Land Use Management and
Institutional Economics. She is an expert on Management Science of the
Latvian Council of Science, a board member: of the FIABCI-Baltic
Multinational Chapter; of the Cunfte of the Facility Management of Latvian
Housing, a Member of the Latvian Union of Civil Engineers etc.
Namejs Zeltins is the Head of the Energy Efficiency Centre at Institute of
Physical Energetics and a Professor at Riga Technical University. His
educational background: M. sc. of theoretical physics, University of Latvia
(Faculty of Physics and Mathematics), 1966; Postgraduate, Institute of
Physical Energetics, Latvian Academy of Sciences, 1972-1979; Dr.sc.ing.,
(Candidate of Science in former USSR - Ph.D. in Western countries),
Georgian Institute of Energetics and Hydrotechnical Buildings, 1984;
Dr.habil.sc.ing., Institute of Physical Energetics, 1993. He is Chair of the
Latvian Member Committee of the World Energy Council since 2001. He is
also a Member of the European WEC Group, a Member of the Board of the
National Energy Confederation, He is a Learned Secretary of the Nuclear
Energy Competence Centre of LAS and a Member of the Advisory Editorial
Board of Polish AS Energy Policy Journal. His academic interests include
fuel and energy complex planning, heat and gas supply systems, the energy
market and energy utilization.