Assessment of Impacts of Wind Electricity Generation Sector Development: Latvian Case

This paper analyses the direct economic, social and environmental impacts of wind electricity generation sector development in Latvia during 2005-2013. Cost-benefit analysis method is employed, Energy PLAN model is used and economical, social and environmental business structure research indicators are analyzed. The results of analysis revealed that wind electricity sector development contributes to the sustainable development of the country, but its impact on Latvia's economy is moderate. On the one hand, benefits from the promotion of the sector are received, when value added, investment, taxes, avoided greenhouse gas emissions and other indicators are considered. On the other hand, thus far these benefits are not well balanced with costs arising from the promotion of wind electricity generation. Subsidies for wind electricity generation and their share included in the final price for electricity increased during the last several years. Thus, economic efficiency of wind electricity sector development remains inconsiderable in Latvia and adjustable policy actions are required.