This paper describes an efficient and appropriate use of biomass in Latvian conditions as well as analyzing the current situation, leading to recommendations for rational use of biomass and the full implementation of the Latvian energy sector. In recent year’s Latvian energy sector development analysis shows, that there is a positive tendency - an increase of local and renewable energy share of energy balance. The paper will be identified for future development opportunities, and will undertake an analysis of renewable energy consumption forecasting in accordance with the renewable energy potential assessment, taking into account the effective use of innovative technologies and ecological aspects of the energy sector. Increasing use of biomass for district heating (and cogeneration), also increase the efficient use of biomass in cost efficiency and reducing of GHG emissions. Efficient use of biomass analyzed in the paper, taking into account technical, legislative, institutional / organizational, economic, information and financial aspects. Promoting of the efficient use of biomass will increase national energy independence.