Latvia currently is self-sufficient in energy resources up to approximately 35%. Annual fossil energy prices rise and risks of security of energy supply promote the development legislation in the matter of renewable resources. One of the recently Latvian Ministry’s of Economy products is a new draft law "Renewable Energy Law", which has been created due to one of the European Union and Latvian national energy policy objectives: to increase the share of renewable up to 40% by 2020. Currently, geothermal energy potential is assessed at 1 x 1013 kWh, nevertheless, geothermal energy is difficult to compete with other renewable energy resources in Latvian energy market. A great job is done in recent years at the legislative level to choose the right methods for supporting use of renewable energy resources. This paper aims is analysis of current situation and assessment of Latvian legislation possibilities to promote the use of geothermal energy.